Hnry vs Xero — when does each one make sense?

Hnry makes sense for a solo service operator who will stay solo, who wants to outsource tax/GST/BAS/super, and who's earning under ~$100k (where 1% capped is still cheaper than Xero + accountant for tax lodgement). Xero makes sense for anyone who'll add employees in the next 1-2 years, has complex deductions, or just prefers to control tax themselves via their accountant.

What about the cost? Hnry sounds expensive at 1%.

1% capped at $1,500/yr includes BAS lodgement, income tax return, super management, and the platform itself. To replicate with Xero you'd pay $35/mo Starter ($420/yr) + a BAS agent ($400-1000/yr) + tax return preparation ($200-500). So at most income levels, Hnry is competitive once the tax service is included. Above ~$150k income the 1% cap is hit and the value comparison gets closer.

If I plan to hire staff later, should I start with Xero?

Probably yes. Migrating from Hnry to Xero when you hire your first employee is real work — re-issuing invoices on your new account number, setting up Xero Payroll, opening a normal business bank account. If you know you'll hire within 12 months, starting on Xero saves the migration. If hiring is hypothetical, Hnry buys you simplicity now.

Can I use Hnry just as a bank account?

Technically yes, but it doesn't make sense — Hnry's whole value is the tax service. If you don't want the tax service, just use Up, Macquarie, or ANZ Plus as your everyday account (all free, see our bank accounts comparison) and pair with Xero for accounting.

Head-to-head

Hnry vs Xero: which one wins for Australian sole traders?

Hnry is a tax service. Xero is accounting software. The decision usually comes down to one question — do you want to outsource tax, or control it yourself with an accountant? Here's the head-to-head.

In this comparison

The structural difference (service vs software).
12-row side-by-side feature comparison.
Cost math with the tax-service value included.
Clear winner per use case + FAQ.

Jump to verdict ↓

Last updated

30 April 2026

Format

Head-to-head + verdict

Tools compared

2 (Hnry, Xero)

The structural difference

Tax service vs accounting software

If you only read one paragraph: Hnry is a tax SERVICE that includes invoicing — you outsource your tax pain. Xero is accounting SOFTWARE — you (or your accountant) still do the tax work, you just have better tools for it.

Hnry

Sole trader tax + invoicing on autopilot

Hnry — outsource the tax pain

Invoice through Hnry, customer pays Hnry, Hnry deducts income tax + GST + super, then pays you the post-tax amount. BAS and tax return lodged for you. Designed for solo operators who'll stay solo.

Affiliate linkVisit Hnry →

Best for solo, hands-off

Xero

Accounting software for growing businesses

Xero — accounting that grows with you

Cloud accounting software with strong AU adoption. Direct BAS lodgement, optional payroll add-on, massive integration ecosystem. You (or your accountant) handle the tax work; Xero gives you the tools.

RecommendedVisit Xero →

Best for operators who'll grow past sole-trader

Side-by-side

12 rows of honest comparison

Pricing accurate as of the last update date. Both providers change plans periodically.

Feature	Hnry	Xero
What it is	A tax service that includes invoicing — you bank through Hnry	Cloud accounting software — you bank as normal
Pricing	1% of income, capped at $1,500 +GST/yr	From $35/mo Starter; +$10/mo for payroll add-on
Best fit	Solo service operators who hate tax admin	Anyone who'll grow past sole-trader
Where payments go	Customer pays Hnry; you receive post-tax amount	Customer pays you direct; tax handling is on you
BAS lodgement	Lodged for you, included in fee	Direct ATO lodgement; you / your accountant do it
Income tax return	Lodged for you, included in fee	Separate — you / your accountant lodge
Super contributions	Auto-deducted + paid on every invoice	Manual or via Xero Payroll for employees
Multi-user / accountant access	Hnry IS the accountant — no separate seat	Yes, dedicated accountant role; multi-user
Integrations ecosystem	Smaller — focused on the tax service	Largest in AU — ServiceM8, simPRO, POS, e-commerce
Scales to employees / payroll	No — designed for solo operators	Yes — Xero Payroll handles STP, super, awards
Mobile UX	Functional	Polished — strong app for invoicing on the go
Switching out later	Move bank account back to your own bank	Most AU accountants already on Xero — easy handoff

Verdict

Pick by where you're heading, not just where you are today

Verdict

Pick Hnry if…

• You're solo and plan to stay solo for the next 12+ months.
• You actively dislike tax admin and want a single bill covering everything.
• You're earning under ~$150k where the 1% cap stays competitive.
• Your customers will happily pay an Hnry-issued account number.

Visit Hnry →

Verdict

Pick Xero if…

• You'll hire your first employee within 12 months.
• You have an existing accountant relationship (they're almost certainly on Xero).
• You integrate with other tools (Stripe, POS, e-commerce, ServiceM8, simPRO).
• You want to control tax deductions yourself / via your accountant.

Visit Xero →

FAQ

Common questions

Hnry vs Xero — when does each one make sense?: Hnry makes sense for a solo service operator who will stay solo, who wants to outsource tax/GST/BAS/super, and who's earning under ~$100k (where 1% capped is still cheaper than Xero + accountant for tax lodgement). Xero makes sense for anyone who'll add employees in the next 1-2 years, has complex deductions, or just prefers to control tax themselves via their accountant.
What about the cost? Hnry sounds expensive at 1%.: 1% capped at $1,500/yr includes BAS lodgement, income tax return, super management, and the platform itself. To replicate with Xero you'd pay $35/mo Starter ($420/yr) + a BAS agent ($400-1000/yr) + tax return preparation ($200-500). So at most income levels, Hnry is competitive once the tax service is included. Above ~$150k income the 1% cap is hit and the value comparison gets closer.
If I plan to hire staff later, should I start with Xero?: Probably yes. Migrating from Hnry to Xero when you hire your first employee is real work — re-issuing invoices on your new account number, setting up Xero Payroll, opening a normal business bank account. If you know you'll hire within 12 months, starting on Xero saves the migration. If hiring is hypothetical, Hnry buys you simplicity now.
Can I use Hnry just as a bank account?: Technically yes, but it doesn't make sense — Hnry's whole value is the tax service. If you don't want the tax service, just use Up, Macquarie, or ANZ Plus as your everyday account (all free, see our bank accounts comparison) and pair with Xero for accounting.

If you want the broader picture

Comparison

All 4 options compared

Hnry, Rounded, Xero, MYOB — the full listicle with verdict per persona.

Read →

Comparison

Hnry vs Rounded

If you've narrowed it to the two sole-trader-first platforms, here's the 1-vs-1.

Read →

Comparison

Xero vs MYOB

If you're past sole-trader and choosing between the two main AU accounting platforms.

Read →

Disclosure + disclaimer

How this comparison was put together

Some of the links above are affiliate links. If you click through and start a paid plan, BizTools.au may earn a small commission. The commission does not change the price you pay and does not influence which side of the verdict wins.

Important note

BizTools.au is designed to make business numbers easier to check, but calculator outputs still need judgment and real-world context.

Calculator results are general estimates only and depend on the figures entered.
Examples and summaries are provided for general information, not legal, tax, accounting, payroll, or financial advice.
Before relying on a result for a real decision, check your assumptions and get qualified advice where needed.

Read the full site disclaimer