FlowFi vs Xero for Australian sole traders
Xero is the accounting platform most Australian accountants know best. It is built for businesses with employees, bills to pay, inventory and an accountant or bookkeeper working in the file alongside the owner. Bank feeds are included, the app ecosystem is enormous, and once it is set up properly it can run a business of almost any size. Entry plans start around $35 a month and the Standard plan is around $70.
FlowFi is narrower on purpose. It is built for one person on an ABN who wants their bank statement turned into categorised transactions, GST figures and a ready-to-copy BAS without learning double-entry bookkeeping. There is no bank feed; you upload a CSV or PDF and AI does the sorting. If you have staff or your accountant insists on Xero, Xero is the right call. If you are a sole trader who wants the quarter done in an evening, keep reading.
Side by side
| Xero | FlowFi | |
|---|---|---|
| Price | Ignite/Starter around $35 a month, Standard around $70 a month. Add-ons such as Expenses cost extra. | Pro $29 a month or $290 a year. Business $59 a month or $590 a year. 14-day free Pro trial, no card. |
| Who it is built for | Small businesses with employees, suppliers and an accountant or bookkeeper working in the file. | Australian sole traders and freelancers doing their own books, usually with no employees. |
| How transactions get in | Bank feeds included. Manual CSV import is also available. | Upload a CSV or PDF bank statement. No bank login and no bank feed. |
| AI categorisation | NoBank rules and suggested matches you set up. No AI categorisation of uploaded statements at the entry tier. | YesYes. AI categorises every line of an uploaded statement with a confidence score, asks you to review only the uncertain ones, and learns from your corrections. |
| GST and deduction flagging | GST is tracked through the tax rate you code on each line. No sole-trader deduction flagging. | YesYes. GST is worked out per transaction and likely deductions are flagged for review. |
| BAS preparation | YesActivity statement report built from your coded transactions. Can connect to the ATO for lodgement once set up. | YesYes. Every BAS label is prepared on a copy-ready card with a guide for ATO Online, and a reminder email lands before the due date with your labels filled in. Or export the pack for your accountant. |
| Tells you what to set aside for tax | Not a built-in sole-trader feature; your accountant or bookkeeper usually works it out from the file. | YesYes. Tax Pot shows what to have set aside for tax from your real transactions, the gap, and a weekly amount to close it. You keep the money in your own account. |
| Invoicing | YesYes. The entry plan has limits on invoice and bill volumes; check the current caps. | YesYes. Tax invoices in four styles with your logo, emailed with the PDF attached, a link your client pays from by bank transfer or PayID, quotes accepted online, recurring invoices, and automatic reminders at 1, 7 and 14 days overdue when switched on. |
| Receipts | YesYes, through the bundled Hubdoc capture tool on most plans. | YesYes. Attach receipts to transactions. |
| Mileage | Through the Xero Expenses add-on, at extra cost. | YesYes. Log trips and apply the ATO cents-per-kilometre rate. |
| Cash-flow forecast | YesShort-term cash flow tools in Xero Analytics; the fuller version is a paid add-on. | YesYes. A cash-flow forecast built from your invoices and history. |
| Human support | Online support through Xero Central. Your accountant or bookkeeper can work directly in your file. | Email support. FlowFi is software; keep your own accountant for advice. |
| Lodges for you | NoNo. You or your accountant lodge; Xero can submit the activity statement to the ATO once connected. | NoNo. You copy the prepared labels into ATO Online in a few minutes, or send the pack to your accountant. |
Xero prices checked September 2026 at xero.com/au/pricing and rounded; see their site for current plans and add-on costs.
Choose Xero if
- You have employees, or expect to hire soon, and need payroll, super and STP reporting in the same system.
- Your accountant or bookkeeper works in your file every month and prefers Xero.
- You need inventory, multi-currency or a specific app integration that only exists in the Xero ecosystem.
Choose FlowFi if
- You are a sole trader with no staff and a bank statement is the only record you need to process.
- You would rather upload a statement and review AI categories than set up bank rules and learn a chart of accounts.
- You want every BAS label pre-filled with a copy-guide for ATO Online, for $29 a month.
Switching from Xero
Export a statement from your bank
Download a CSV or PDF of the quarter from your bank. You do not need to export anything from Xero unless you want your history; a CSV of past transactions from Xero can be uploaded too.
Upload it to FlowFi
Drop the file in. AI categorises each line, works out GST and flags deductions in a few minutes.
Review and lodge
Check the categories, confirm the BAS labels and copy them into ATO Online. Cancel Xero once you are happy, remembering to download any reports you want to keep.
Not sure where the export button is? How to export a bank statement CSV from the major Australian banks.
Questions people ask
Can my accountant still get what they need from FlowFi?
Yes. FlowFi exports a tax pack in PDF, CSV, MYOB or Xero format with one click. Many accountants are happy to receive clean, categorised data rather than working in a file themselves.
Does FlowFi have bank feeds like Xero?
No. FlowFi is upload only. You export a statement from your bank and drop it in. Some people prefer this because it means no bank login is stored anywhere; others miss the automatic feed. It takes about two minutes per account per month.
I already have years of history in Xero. Do I lose it?
Not if you export it before you cancel. Xero lets you export transaction reports to CSV, and you can upload those to FlowFi to keep your history in one place.
Keep reading
See what your last statement looks like in FlowFi
Upload one CSV or PDF and compare the result with what you are doing now. Free for 14 days, no card.
Start 14-day free trial14 days of Pro free. No credit card. Then $29 a month or $290 a year.
Xero is a trademark of its owner. FlowFi is not affiliated. Figures are general information only and may change; check both options' current pricing and features before deciding. FlowFi does not lodge your BAS or give tax advice.