The accounting software market offers dozens of options, but Canadian small businesses have specific needs: GST/HST return generation, CRA compliance, provincial payroll rules, and multi-currency for businesses dealing with US clients. Here's an honest comparison of the four most commonly used platforms in Canada.
QuickBooks Online (QBO)
The most widely used accounting software in Canada. QBO handles GST/HST filing, payroll through an add-on (QuickBooks Payroll), bank feeds for most major Canadian banks, and has excellent integration with most bookkeeping and accounting professionals.
| Plan | Monthly Cost | Best For |
|---|---|---|
| Simple Start | ~$19/mo | Sole proprietors, freelancers |
| Essentials | ~$27/mo | Small businesses with 3 users |
| Plus | ~$38/mo | Businesses needing inventory tracking |
| Advanced | ~$80/mo | Businesses needing custom reporting |
Pros: Largest ecosystem, most bookkeepers know it, strong GST/HST support, good mobile app.
Cons: Pricing increases frequently, can feel bloated for very simple businesses, payroll is a separate add-on cost.
Xero
A strong alternative to QBO, especially for businesses with international clients. Xero's multi-currency feature is included in all plans (QBO charges extra). Canadian bank feeds work well, and GST/HST return preparation is straightforward.
| Plan | Monthly Cost | Transactions/mo |
|---|---|---|
| Starter | ~$20/mo | 20 invoices + 5 bills |
| Standard | ~$36/mo | Unlimited |
| Premium | ~$47/mo | Unlimited + multi-currency |
Pros: Clean interface, strong multi-currency, unlimited users on all plans.
Cons: Less common among Canadian bookkeepers than QBO, payroll handled through third-party add-ons.
Wave (Free)
Wave is genuinely free for accounting and invoicing — a rarity in the software world. It handles GST/HST tracking, connects to most Canadian bank accounts, and is perfectly adequate for a sole proprietor or very small business. Payroll is a paid add-on.
Pros: Free, simple, adequate for basic needs, good invoicing.
Cons: Limited reporting, fewer integrations, customer support is limited on the free tier, not suitable once your business grows.
Sage 50
A desktop-first software with a long history in Canadian accounting. Sage 50 is particularly strong for inventory management, job costing, and businesses that need robust desktop functionality. It's common in manufacturing, construction, and wholesale distribution.
Pros: Excellent inventory, strong desktop performance, CPA-friendly reports.
Cons: Steep learning curve, desktop-oriented (cloud access is limited), higher cost.
When Outsourcing Is Better Than Software
Software is a tool — it doesn't do your bookkeeping for you. Consider outsourcing your bookkeeping when:
- You're spending more than 2 hours per week on bookkeeping
- You don't know how to categorize transactions correctly
- Your GST/HST returns are late or incorrect
- You can't tell if your business is profitable month-to-month
- Your year-end cleanup cost equals 3+ months of bookkeeping fees
For most small businesses, outsourced bookkeeping costs less than the software plus the time wasted doing it wrong.
We Work With Whatever Software You Use
MaxRefund provides bookkeeping services using QBO, Xero, or Wave — or we can manage the software setup for you from scratch.
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