Should NZ sole traders use accounting software like Xero or MYOB?

Accounting software like Xero, MYOB, and Hnry can significantly simplify tax compliance for New Zealand sole traders. Here's a comparison: **Xero (founded in NZ — very popular):** - Excellent bank feed integration with most NZ banks - Built-in GST return filing through myIR - Strong ecosystem of NZ accountants and bookkeepers - Starter plan: approximately NZ$35/month - Very NZ-focused features **MYOB:** - Strong in both NZ and Australia - Good for businesses also operating in Australia - Sole trader plan: approximately NZ$27/month **Hnry (NZ-specific, popular with sole traders):** - Specifically designed for NZ sole traders - Automatically deducts and pays your tax/ACC/student loan as you go - Charges 1% + GST of income (minimum NZ$1.50 per payment) - No separate accounting app needed — Hnry handles everything **Do you need accounting software?** For simple businesses with few transactions, spreadsheets can work. For businesses with many transactions, regular GST obligations, or team members, dedicated software is worth the cost — especially since the software subscription is itself a deductible business expense.

• Xero: NZ-founded, excellent NZ bank integrations, ~NZ$35/month
• MYOB: strong NZ/AU presence, ~NZ$27/month
• Hnry: NZ-specific, pays your tax automatically, 1% fee
• Software subscription is a deductible business expense
• Look for direct myIR integration for easy GST filing