Looking for a Xero alternative for sole traders? FlowFi is built for one person on an ABN
Xero is excellent at what it was designed for: running a business with employees, suppliers, inventory and an accountant or bookkeeper working in the file alongside the owner. Bank feeds are included, the app marketplace is enormous, and it scales a long way. For a sole trader with no staff, most of that is weight you carry without using, and a monthly price that starts around $35 before add-ons.
FlowFi is narrower on purpose. You upload your bank statement, AI categorises every line, flags GST and deductions, prepares each BAS label for ATO Online and keeps a Tax Pot so you know what to set aside. Invoicing, quotes, recurring invoices and late-payer chasing are included at $29 a month. The full side-by-side is at FlowFi vs Xero.
Why sole traders look for a Xero alternative
It is built for bigger businesses
Payroll, bills, purchase orders, inventory, multi-currency, fixed asset registers. A one-person business on an ABN needs almost none of it, but navigates past it every time they log in.
The price and the add-ons
Entry plans start around $35 a month and the Standard plan is around $70, with expenses, projects and fuller cash-flow tools sold separately. That adds up to more than the tax it helps you manage for many sole traders.
The complexity
A chart of accounts, bank rules, reconciliation, tax rates on every line and double-entry under the bonnet. Accountants love it. Sole traders tend to leave it untouched until the BAS is due, then dread it.
What you keep
- Invoicing, done properly: PDF tax invoices in four styles with your logo, emailed with the PDF attached, pay links with bank transfer or PayID, quotes accepted online, recurring invoices, and opt-in chasing at 1, 7 and 14 days overdue.
- GST worked out per transaction, deductions flagged, and every BAS label prepared for ATO Online, with a reminder before the due date.
- Receipts, mileage at the ATO cents-per-kilometre rate, and a cash-flow forecast.
- An accountant export in PDF, CSV, Xero or MYOB format, so a Xero-based accountant can still take your data.
What you give up
- Bank feeds. FlowFi has no bank connection; you export a CSV or PDF statement and upload it, a minute or two per account each month.
- Payroll, Single Touch Payroll, inventory, multi-currency and the app marketplace. If you need any of these, stay on Xero.
- Lodging from inside the software. FlowFi prepares every label; you copy them into ATO Online in about five minutes, or send the pack to your accountant.
- Your accountant working inside your file every month. They get a clean export instead, or a user seat on the Business plan.
Xero vs FlowFi in six rows
| Xero | FlowFi | |
|---|---|---|
| Price | Entry plans from around $35 a month, Standard around $70. Expenses, projects and some analytics are paid add-ons. | Pro $29 a month or $290 a year. Business $59 or $590. Everything included. 14-day free trial, no card. |
| Built for | Businesses with employees, suppliers, inventory and an accountant or bookkeeper working in the file every month. | One person on an ABN with a bank statement to process, a BAS to lodge and invoices to send. |
| How transactions get in | YesBank feeds, plus manual CSV import. | Upload a CSV or PDF bank statement. No bank login and no bank feed. |
| Categorisation | Bank rules and suggested matches you set up and reconcile line by line against a chart of accounts. | YesAI categorises every line with a confidence score, asks you to review only the uncertain ones, and learns from your corrections. |
| BAS | YesActivity statement report built from the tax rates you coded. Can lodge to the ATO once connected and set up. | YesEvery BAS label prepared on a copy-ready card with a guide for ATO Online, plus a reminder email before the due date with your labels in it. FlowFi does not lodge. |
| Tells you what to set aside for tax | Not a built-in sole-trader feature; your accountant usually works it out from the file. | YesTax Pot works it out from your real transactions and shows what to move each week, with an optional super percentage. |
Switching in 15 minutes
There is no migration project. Your bank already holds the records FlowFi needs.
- 1
Export a bank statement
Download a CSV or PDF of the quarter from your bank. If you want your history in one place, Xero can export past transactions to CSV as well; upload that too.
- 2
Upload it to FlowFi
Drop the file in. AI categorises every transaction, works out the GST and flags likely deductions in a couple of minutes. No chart of accounts to build first.
- 3
Review and confirm the BAS
Check the uncertain lines, confirm the BAS labels, and copy them into ATO Online. Tax Pot tells you what to set aside from here on.
- 4
Move your invoicing
Set up your template with your logo, bank details or PayID, and send the next invoice from FlowFi. Keep Xero open until any outstanding invoices are paid, download the reports you want to keep, then cancel.
FlowFi pricing
$29 a month
or $290 a year for Pro. Business is $59 a month or $590 a year and adds unlimited bank accounts, up to five users, AI insights and API access.
- 14 days of Pro free, no card
- 30-day money-back guarantee on your first payment
- No add-ons, no per-invoice caps
Xero pricing
$35 a month, roughly
for the entry plan, around $70 for Standard, with caps on invoices and bills at the entry tier and paid add-ons for expenses, projects and fuller analytics.
Xero prices checked September 2026 at xero.com/au/pricing and rounded; see their site for current plans.
Frequently asked questions
Can my accountant still get what they need if I leave Xero?
Yes. FlowFi exports a tax pack in PDF, CSV, Xero or MYOB format with one click, and the transactions arrive categorised with GST worked out. On the Business plan you can also invite your accountant or bookkeeper as a user with their own role. Many accountants prefer clean data to working in a sole trader’s file themselves.
Do I lose my history?
Not if you export it before you cancel. Xero can export transaction reports and account transactions to CSV; upload those to FlowFi to keep the history in one place, and keep the PDF reports for your records. The ATO requires five years of records either way.
Does FlowFi do payroll?
No. FlowFi has no payroll, Single Touch Payroll, super clearing or inventory. If you have employees, or expect to hire soon, Xero is the better fit and this page is not trying to talk you out of it.
Is FlowFi cheaper than Xero?
A little on the sticker: FlowFi Pro is $29 a month or $290 a year against Xero entry plans from around $35, and FlowFi has no add-ons. The bigger difference is fit. Xero charges for capabilities a one-person business rarely uses; FlowFi is built around the three things a sole trader does every quarter, which are categorise, lodge and invoice.
See your last statement in FlowFi
Upload one CSV or PDF and compare the result with what you are doing in Xero now. Nothing to set up first.
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 Xero Limited. FlowFi is not affiliated with Xero. 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. See also FlowFi vs Xero.