Xero is a capable, well-known accounting platform, and for plenty of growing businesses it's a sensible choice. But it was built to serve everyone from sole traders to large companies with payroll and inventory, so if you're a one-person business you can end up paying for, and working around, a lot you'll never use. That's usually what sends people looking for an alternative.
This is an honest guide to what to weigh up when choosing a Xero alternative as an Australian sole trader. We build one of those alternatives, FairBooks, so we'll be upfront about where it fits and where other options might suit you better.
Why sole traders look for a Xero alternative
The reasons we hear most often aren't really complaints about Xero's quality. They're about fit:
- Pricing structure - tiered plans where the cheapest tier limits things like the number of invoices, and prices that tend to rise over time.
- Paying for features you don't use - payroll, projects, multi-currency and the like, when you just want invoices, expenses and a BAS.
- Complexity - a full general ledger and a busy interface can feel like a lot for a simple sole-trader business.
If none of that bothers you, Xero may well be fine. If it does, it's worth knowing what else is out there.
What to look for in a Xero alternative
Whatever you choose, a sole trader in Australia should check it covers the essentials:
- GST and BAS - built for Australian tax, not a global tool with an Australian setting bolted on.
- Simple invoicing and expenses - the daily jobs, quick to do.
- Predictable pricing - you know what it costs, with no surprise tier you have to upgrade into.
- Only the features you need - so the software stays out of your way.
- Australian data handling and support - local context when something tax-related comes up.
How FairBooks compares
One flat, fair price
FairBooks is built around a single flat price with everything included, rather than tiers that limit invoices or features. The idea is simple: you shouldn't have to guess which plan you need, or get pushed up a tier as your invoicing grows.
Built only for Australian sole traders
FairBooks isn't a global product with an Australian mode. GST, BAS, ABN and ATO concepts are built in from the start, for the way sole traders here actually work.
Simplicity over feature bloat
The aim is to include what a sole trader actually needs (invoicing, expenses, customers, GST and BAS reporting) and leave out the rest, so the day-to-day stays quick and clear.
Australian-built and founder-led
FairBooks is built and hosted in Australia, by a small team you can actually reach. That's a different experience from a large global vendor, for better and for worse, which brings us to an honest look at the trade-offs.
An honest comparison
Here's a fair, high-level comparison. Xero's offering and pricing can change, so treat the right-hand column as a general description at the time of writing and check xero.com for current details.
| FairBooks | Xero (at time of writing) | |
|---|---|---|
| Pricing model | One flat price, everything included | Tiered monthly plans |
| Built for | Australian sole traders | Sole traders through to larger businesses |
| GST & BAS | Yes, core feature | Yes |
| Payroll, inventory, multi-currency | Intentionally out of scope | Available, varies by plan |
| Feel | Deliberately simple | Full-featured |
| Availability | Private testing (pre-launch) | Generally available |
Where FairBooks is today (the honest bit)
No point pretending otherwise: FairBooks is in private testing ahead of launch. A founding membership is opening for the first 50 businesses, and broader availability follows after that. Xero, by contrast, is an established product you can sign up for today.
So if you need software up and running this afternoon, an established option is the practical choice right now. If you like what FairBooks is building and want a fair, simple tool made for sole traders, the founding membership is the way to get in early and help shape it.
Other Xero alternatives worth knowing
We'd rather you choose well than choose us by default, so here are a few other Australian-friendly options for sole traders and freelancers:
- Rounded - aimed at freelancers and sole traders, with invoicing and basic tax features.
- Thriday - combines banking and bookkeeping with automation.
- Reckon and MYOB - long-standing Australian accounting providers with a range of plans.
Compare each against the checklist above, and on current pricing from their own sites, before you decide.
Is FairBooks the right Xero alternative for you?
FairBooks is likely a good fit if you're a sole trader who wants simple, Australian-built accounting at a flat price, and you're happy to come in during the founding period. It's probably not the right pick if you need payroll, inventory or multi-currency, or if you need a fully launched product today. That's the honest trade-off, rather than a hard sell.