Getting paid starts with sending a professional invoice — quickly and with easy payment options. In 2026, Australian SMEs have plenty of choices, from full accounting platforms to simple invoicing-only apps. Here's our comparison of the best options.
1. Quick Comparison
| Software | Price (from) | Best For | Full Accounting? |
|---|---|---|---|
| Xero | $29/month | Growing businesses needing full accounting + invoicing | Yes |
| MYOB | $25/month | Businesses needing strong payroll + invoicing | Yes |
| Square Invoices | Free | Micro-businesses and sole traders wanting simple invoicing | No |
| Rounded | Free–$15/month | Freelancers and contractors (Australian-built) | Basic |
| Invoice2go | $10/month | Tradies and mobile workers who invoice on-site | No |
2. What Makes a Good Invoice?
Regardless of software, every invoice should include:
- Your business name, ABN, and contact details.
- The word "Tax Invoice" (required if you're GST-registered and the amount is over $82.50).
- A unique invoice number.
- The date of issue and due date.
- Description of goods/services provided.
- GST amount (shown separately or noted as "Total includes GST of $X").
- Payment terms and methods (bank details, PayID, online payment link).
3. Online Payment Links — The #1 Way to Get Paid Faster
Invoices with online payment options (Stripe, GoCardless, PayPal) get paid 2x faster than those with bank details only. In Xero, you can enable online payments so clients pay with one click directly from the invoice email.
4. Recurring Invoices
If you bill clients the same amount monthly (retainers, subscriptions, rent), set up repeating invoices in Xero. They're created and sent automatically — no manual work required. This is essential for service businesses wanting predictable cash flow.
5. When to Graduate to Full Accounting Software
If you're currently using a free invoicing tool, consider switching to Xero or MYOB when:
- You need to lodge BAS (GST reporting requires proper accounting software).
- You hire employees (payroll, STP reporting).
- You want real financial reports (P&L, Balance Sheet, cash flow).
- Your accountant or bookkeeper requires it for year-end work.
Key Takeaways
- Xero is the best all-in-one for growing SMEs; Square/Rounded are great for sole traders.
- Every tax invoice must include your ABN, GST amount, and unique invoice number.
- Add online payment links to get paid 2x faster.
- Use repeating invoices for retainers and subscriptions.
- Graduate to full accounting software when you need BAS, payroll, or financial reports.