MYOB Solo vs Xero for Sole Traders
MYOB Solo is gone — here's what Australian sole traders should use instead
MYOB Solo Is Discontinued — Here's What to Use Instead
If you're a sole trader in Australia looking for accounting software, you may have heard of MYOB Solo — a simplified, affordable product designed specifically for sole traders. It no longer exists. MYOB discontinued Solo and now starts at Essentials ($35/month), a product designed for small businesses with employees.
For most sole traders, Xero Starter at $25/month is now the best option. It's simpler, cheaper, and designed for exactly the workload a sole trader handles: sending invoices, reconciling bank transactions, tracking GST, and generating BAS reports.
Which One Suits You?
- MYOB Solo no longer exists. MYOB now starts at Essentials ($35/month).
- Choose Xero Starter ($25/month) if you're a typical sole trader: freelancer, tradesperson, online seller, rideshare driver or property investor. It's simpler and cheaper.
- Choose MYOB Essentials if you consistently send more than 20 invoices a month. Xero Starter caps you at 20; MYOB Essentials is unlimited.
- Selling overseas? Move up to Xero Standard ($50/month) if you need multi-currency.
$120
Annual saving with Xero over MYOB
5x
More app integrations (1,000+ vs 200+)
200+
Australian banks connected via bank feeds
The only exception: if you consistently send more than 20 invoices per month, MYOB Essentials' unlimited invoicing may be worth the extra $10/month. For everyone else, Xero Starter is the clear winner.
Feature-by-Feature Comparison for Sole Traders
| Feature | Xero Starter | MYOB Essentials | Winner | Notes |
|---|---|---|---|---|
| Monthly Cost | $25/month (Starter) | $35/month (Essentials) | Xero | Save $120/year |
| Invoicing | 20 invoices/month | Unlimited | MYOB | Only matters if you invoice 20+ times/month |
| Bank Feeds | 200+ AU banks, auto-matching | 100+ banks | Xero | Better bank coverage and smarter matching |
| GST Tracking | Automatic GST calculation | Automatic GST calculation | Tie | Both handle GST well |
| BAS Reporting | BAS-ready reports | BAS-ready reports | Tie | Both generate ATO-compliant BAS reports |
| Receipt Capture | OCR mobile scanning | Basic upload | Xero | Xero auto-reads receipt data |
| Mobile App | Full-featured iOS/Android | Limited functionality | Xero | Invoice, reconcile, and track on-the-go |
| Accountant Access | Free advisor login | Free advisor login | Tie | Both offer free access for your accountant |
| Interface | Modern, intuitive | More complex | Xero | Less time doing bookkeeping |
| Mileage Tracking | Via add-on apps | Not built-in | Xero | Xero marketplace has mileage apps |
| Multi-Currency | Standard plan+ ($50/mo) | Limited | Xero | Only relevant if you invoice overseas |
| App Integrations | 1,000+ apps | 200+ apps | Xero | More options for time tracking, payments, etc. |
Score: Xero 8 — MYOB 1 — Tie 3 | Xero wins on price, interface, mobile, bank feeds, receipt capture, mileage, multi-currency and integrations. MYOB wins only on unlimited invoicing.
Which Type of Sole Trader Are You?
Freelancer / Consultant
IT consultant, graphic designer, copywriter, marketing consultant
Xero Starter
You send fewer invoices but rely on receipt capture and time-tracking apps, and you save $120/year over MYOB.
Tradesperson
Electrician, plumber, carpenter, painter
Xero Starter
Xero’s mobile app makes quoting and invoicing on site easy, and it connects better with trade apps like Fergus and ServiceM8.
Online Seller
Etsy seller, eBay seller, Shopify store
Xero Starter or Standard
Xero connects to more online selling platforms. Move to Standard ($50/mo) if you need multi-currency for international sales.
Rideshare / Delivery Driver
Uber, DoorDash, Menulog
Xero Starter
Snap fuel and car receipts on your phone, track the 1/11th GST credits simply, and pay less than you would for MYOB.
High-Volume Invoicer
Cleaning business, lawn mowing, dog walking (20+ clients/month)
MYOB Essentials
If you consistently send more than 20 invoices per month, MYOB's unlimited invoicing avoids the Xero Starter cap.
Property Investor (Sole Trader)
Rental properties, short-term rental host
Xero Starter
Bank feeds for rental income tracking, easy categorisation of expenses, and straightforward BAS reporting.
Setting Up as a Sole Trader — Quick Checklist
Before You Start
- Register for an ABN at abr.gov.au (free, instant)
- Register for GST if your annual turnover exceeds $75,000 (or you expect it to)
- Open a separate business bank account (keeps things clean for BAS)
Setting Up Xero Starter
- Sign up for a free 30-day trial at xero.com
- Connect your business bank account via bank feeds
- Set up your chart of accounts (Xero provides a sole trader template)
- Create your first invoice template with your ABN and business details
- Invite your accountant/bookkeeper via free advisor access
- Download the Xero mobile app for receipt capture
Ongoing (15 mins/week)
- Reconcile bank transactions weekly (5 mins with bank feeds)
- Capture receipts as you get them via the mobile app
- Send invoices as work is completed
- Run BAS report quarterly and lodge via your accountant or myGov
Frequently Asked Questions
Xero is generally better for sole traders. The Starter plan ($25/mo) covers everything most sole traders need: invoicing, bank feeds, GST tracking, and basic reporting. MYOB's cheapest plan (Essentials at $35/mo) includes features most sole traders don't need. Xero saves you $120/year and has a simpler interface.
MYOB Solo was a simplified, cheaper product designed specifically for sole traders. It has been discontinued. MYOB's cheapest option is now Essentials at $35/month, which includes multi-user access and advanced features that sole traders typically don't need. Xero Starter ($25/mo) is the closest replacement in terms of simplicity and pricing.
Xero Starter costs $25/month ($300/year). It includes 20 invoices per month, bank feeds with 200+ Australian banks, GST tracking, BAS-ready reports, receipt capture via mobile app, and free advisor access for your accountant or bookkeeper. Most sole traders never need to upgrade beyond Starter.
Since MYOB Solo was discontinued, the cheapest MYOB plan is Essentials at $35/month ($420/year). This includes unlimited invoicing, bank feeds, GST tracking, and basic reporting. You're paying $120/year more than Xero Starter for features like multi-user access that sole traders rarely use.
No. MYOB Solo was a separate, simpler product at a lower price point. It has been discontinued. MYOB Essentials is a more full-featured product at $35/month that includes capabilities designed for small businesses with employees, not just sole traders.
Yes, both platforms offer free advisor access. Your accountant or bookkeeper can log into your Xero or MYOB account at no additional cost to you. This is standard across both platforms and means your accountant can do your BAS, review transactions, and prepare tax returns without needing their own subscription.
You're legally required to keep accurate records for the ATO. While spreadsheets are technically allowed, accounting software like Xero makes compliance much easier: automatic bank feeds eliminate manual data entry, GST is calculated automatically, and BAS reports are generated with a few clicks. At $25/month, the time savings alone justify the cost.
Xero has significantly better mobile apps. The Xero app lets you create and send invoices, capture receipts with OCR scanning, reconcile bank transactions, and check cash flow — all from your phone. MYOB's mobile app has more limited functionality. For sole traders who manage their business on-the-go, Xero's mobile experience is a clear advantage.
Both Xero and MYOB help you track common sole trader tax deductions: home office expenses, vehicle/mileage, tools and equipment, internet and phone, professional development, and business-related travel. Xero makes it easier to categorise expenses with bank feed rules and receipt capture. Your accountant can then pull reports at tax time showing all deductible expenses by category. Always check with an accountant about specific deductions — ATO rules change regularly.
Yes. Both Xero and MYOB generate BAS-ready reports that show your GST collected, GST paid, and net amount owing or refund due. The software calculates everything automatically from your bank feeds and invoices. You can either lodge yourself via myGov Business Portal or have your accountant lodge on your behalf (most accountants prefer to lodge for you to ensure accuracy). If your affairs are simple, self-lodging is straightforward with either platform.
Xero handles this better through integrations. Apps like Driversnote, MileIQ, and Triplog connect to Xero and automatically track your business mileage using GPS. They calculate deductions using ATO rates (currently 85 cents per km for 2026). MYOB has basic vehicle expense tracking but lacks the same level of automatic mileage tracking integration. For sole traders who drive for work (tradies, consultants, delivery drivers), Xero + a mileage app is the better solution.
Xero is significantly better for online sellers. It integrates seamlessly with Shopify, WooCommerce, Etsy, eBay, and Amazon via apps like A2X, Synder, and Link My Books. These integrations automatically sync sales, fees, and payouts to Xero, making reconciliation effortless. MYOB has fewer e-commerce integrations and less reliable sync. If you sell on multiple platforms, Xero saves hours of manual data entry each month.
Most sole traders never need to upgrade. The main reasons to upgrade to Xero Standard ($50/mo) are: you send more than 20 invoices per month, you invoice international clients and need multi-currency, or you want expense claims with approval workflows. If you only work with Australian clients and send fewer than 20 invoices monthly, Starter is perfect. You are not missing any critical features by staying on Starter.
Yes, but timing matters. The cleanest time to migrate is at the start of a new BAS quarter (1 July, 1 October, 1 January, 1 April). This avoids splitting quarterly GST reporting across two systems. If you migrate mid-quarter, your accountant will need to reconcile GST from both systems for that quarter. Migration for sole traders is simpler than for larger businesses — typically just chart of accounts, contacts, and outstanding invoices. If you want help, the cost depends on how much history you bring across — we give a fixed quote after a free initial chat.
Xero scales better for growing sole traders. When you hire your first employee, you add Xero Payroll for $13/month plus $4.50 per employee. It handles Single Touch Payroll (STP), super, leave, and award rates. MYOB includes payroll in higher plans but requires upgrading to MYOB Plus ($65/mo). If growth is on the horizon, Xero gives you more flexibility to add features incrementally without jumping to expensive tiers. You can also integrate Xero with HR tools like Employment Hero as you scale.
If you consistently exceed 20 invoices per month, you have two options: upgrade to Xero Standard ($50/mo) for unlimited invoicing, or choose MYOB Essentials ($35/mo) which includes unlimited invoicing. MYOB Essentials is $15/month cheaper than Xero Standard, making it the better choice for high-volume invoicers who do not need multi-currency or advanced features. However, if you send 18-22 invoices some months, consider combining similar invoices or using progress invoicing to stay within the Xero Starter limit.
Need Help Getting Set Up?
We help sole traders and small businesses across Australia get their accounting software set up properly from day one — so you spend less time on bookkeeping and more time on your business.