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The tiers
| Your shape | What you need | The candidates |
|---|---|---|
| Under the GST threshold, no GST, simple expenses | Tier 0: a clean business bank account, a spreadsheet, receipts photographed, and a set-aside percentage on every invoice | A structured spreadsheet plus the ATO app's myDeductions for receipts and logbook. Free means discipline is the product |
| The same, but wanting automation | Tier 1: free or cheap tools giving bank feeds and invoicing without the full subscription | Genuinely free options exist with feed and invoice basics. Check that the absence of payroll does not matter yet, and that export quality does, because your accountant inherits it |
| GST-registered | Tier 2: BAS-capable software, where coding accuracy alone repays roughly $30 a month | Xero or QuickBooks entry tiers - this is the graduation point |
| Gig worker or contractor who hates admin and has few deductions | The Hnry model - remittance rather than bookkeeping | Hnry and equivalents |
| Your first employee | Tier 0 and 1 are over: Single Touch Payroll-capable payroll is non-negotiable | A payroll-capable tier of any mainstream platform |
Full shape-by-shape reasoning for larger businesses sits in the small-business decision tree, and the entry-tier choice itself is settled in QuickBooks vs Xero and Xero vs MYOB.
Hnry, honestly
Hnry's model is unusual: it receives your income, deducts and remits income tax, GST, HELP and even super as you are paid, files your BAS and return, and charges a percentage of income with a cap. Who it genuinely suits: gig workers, contractors and freelancers with few deductions and a horror of admin. It structurally solves the set-aside failure that creates most sole-trader tax debt, and that is real value.
Where it stops making sense: expense-heavy operators, because the percentage fee buys less as deductions and complexity grow - a tradie with vehicle, tools and materials claims needs deduction craft, not just remittance. Also anyone approaching structure questions, and any business heading toward employees.
The one rule across every tier: the tool never changes what is claimable, what is lodged, or what is owed. Sole traders years behind do not have a software problem, and buying a subscription is not the catch-up. Reconstruct, lodge, remit, then pick the tier that maintains it.
Frequently asked questions
What is the best accounting software for a sole trader?
Is free accounting software good enough?
Is Hnry worth it?
Hnry or Xero?
When do I have to upgrade?
General information only - not personal tax, financial or legal advice. Consider your own circumstances or speak to a registered tax agent. Remission of penalties or interest and payment plans are decisions of the ATO and outcomes can't be guaranteed.