Best free accounting software for Canadian small businesses (2026)

It is late October. Your receipts for the year are in a shoebox, a phone folder and three email inboxes, and if you run the business as a sole proprietor, your tax year closes on December 31. The question is not whether you need bookkeeping software, it is whether you can get it for free before January.

The short answer: two accounting tools have a free plan worth using in Canada. Wave Starter is free with unlimited invoices and bookkeeping records, and Zoho Books Free is free while your revenue stays under C$50,000 for the financial year, with GST/HST returns, bank reconciliation and data centres in Toronto and Montreal. If you need automatic bank feeds or more users, the cheapest paid step is Zoho Books Standard at C$15 a month billed yearly.

Key takeaways

Zoho Books Free stays free only while revenue for the financial year is under C$50,000; it covers one user plus one accountant, and up to 1,000 invoices a year.
Wave Starter has no invoice cap, but automatic bank imports and receipt scanning sit on Pro, at $25 CAD a month or $250 CAD a year.
The CRA expects you to keep records for six years from the end of the last tax year they relate to, so pick software you can export from, not just log in to.

A person reviewing business paperwork with a calculator and laptop

At a glance

Accounting software for Canadian small businesses. Prices from each company's own Canadian pricing page, before tax; Vaelolab did not test these tools.
Tool	Best for	Free plan limit	Paid from	Canadian note
Wave	Solo owners who want free books and invoices	Unlimited invoices, estimates, bills and records; no automatic bank import	Pro $25 CAD a month or $250 CAD a year	Pro priced in CAD
Zoho Books	Owners under C$50,000 revenue who file GST/HST	Revenue under C$50,000 a year; 1 user plus 1 accountant; 1,000 invoices a year	Standard C$15 a month billed yearly, C$20 monthly	CAD pricing, French edition, data centres in Toronto and Montreal
QuickBooks Online	Owners whose accountant already uses it	No free plan; 30 day trial	EasyStart $30 a month (currency not stated on the page)	GST/HST tracking for the CRA on all plans, per its FAQ
Xero	Low volume businesses that want bank reconciliation	No free plan; 30 day trial	Starter $25 a month	Prices in Canadian dollars
FreshBooks	Service businesses with a handful of clients	No free plan; 30 day trial	Lite $26.00 CAD a month	Priced in CAD

How we chose

Official pages only for every price, limit and rule, read on each company's Canadian site.
Published features and pricing, not hands on testing.
What matters to a small Canadian business: a real free plan, GST/HST handling, Canadian dollar pricing and records you can keep for the CRA.
Nobody pays to be included.

The two real free plans

Wave Starter

Wave is accounting and invoicing software built for very small businesses, with a free Starter plan and a paid Pro plan.

Best for: a sole proprietor or freelancer who wants invoices and bookkeeping in one free place and does not mind entering bank transactions by hand.

Unlimited records: estimates, invoices, bills and bookkeeping records with no cap.
Mobile invoicing: send invoices from the app.
One dashboard for cash flow and customers.
Online payments as an option, at 2.9% + $0.60 per credit card payment on Starter.

Why it stands out: it is the only option here with no invoice cap and no revenue limit on the free plan.

Limits: automatic bank imports and automated late payment reminders are Pro features. Receipt scanning is a paid add on for Starter users. Payroll is a separate paid add on.

Price: Starter is $0. Pro is $25 CAD a month or $250 CAD a year. See our Wave tool page for more.

Zoho Books Free

Zoho Books is full accounting software from Zoho, with a Canadian edition, a free plan and five paid tiers.

Best for: a GST/HST registered owner with revenue under C$50,000 who wants proper reports and tax returns without paying.

Volume: up to 1,000 invoices and 1,000 expenses or bills a year.
People: one user plus one accountant.
Tax: provincial and federal tax returns, combined GST/QST returns, and contractor tracking for T4A and T5018.
Extras: bank reconciliation, 50 receipt autoscans a month and 5 scheduled reports.

Why it stands out: it is the only free plan here built around Canadian sales tax returns, and Zoho places Canadian accounts in its Toronto and Montreal data centres when you choose Canada at sign up.

Limits: the plan is free only while revenue for the financial year stays under C$50,000. Connecting bank feeds starts on Standard. Support is by email only, and add ons are not supported except document autoscans.

Price: Free under the revenue threshold. Standard is C$15 a month billed yearly or C$20 monthly, with three users. Professional is C$30 billed yearly or C$35 monthly.

Paid options worth knowing

All three of these start with a 30 day trial instead of a free plan. Each also advertises a first months discount; plan your budget on the regular price, because that is what you pay from then on.

QuickBooks Online

QuickBooks Online is Intuit's cloud accounting software, sold in Canada in several tiers plus a Lite plan for freelancers.

Best for: owners whose bookkeeper or accountant already works in QuickBooks.

Sales tax: its FAQ says all plans include automated bank feeds and GST/HST tracking for the CRA.
Receipt capture is listed on EasyStart, Plus and Advanced.
Users: 1 on EasyStart, up to 5 on Plus, up to 25 on Advanced.

Why it stands out: GST/HST tracking is named as a core feature on every plan.

Limits: no free plan. The Lite plan has no accountant access and two bank connections. Its FAQ mentions an Essentials plan the pricing table does not show.

Price: regular prices are $20 a month for Lite, $30 for EasyStart, $110 for Plus and $220 for Advanced. The page shows only a $ sign, so the currency is not stated on the page.

Xero

Xero is cloud accounting software with three Canadian plans, priced in Canadian dollars.

Best for: a business with only a few invoices and bills that wants bank reconciliation and cash flow forecasts.

Starter: send quotes and 20 invoices, enter 5 bills, reconcile bank transactions, 30 day cash flow forecast.
No per user licence fees, according to the pricing page.
Hubdoc for documents is included while you subscribe.

Why it stands out: no per user fees, so adding a partner or bookkeeper does not raise the price.

Limits: the Starter page does not say over what period the 20 invoices and 5 bills apply. Auto reconciliation on Starter is a $5.00 a month add on. The pricing page does not mention GST/HST.

Price: Starter $25, Standard $60 and Premium $80 a month, in Canadian dollars, before tax.

FreshBooks

FreshBooks is invoicing and accounting software aimed at service businesses, with Canadian pricing in CAD.

Best for: a consultant or trade business with five or fewer regular clients.

Client limits: 5 on Lite, 50 on Plus, unlimited on Premium.
Team members are a $13 a month add on per user.
Advanced Payments is a $25 a month add on below the Select plan.

Why it stands out: clear CAD pricing for owners who bill by client rather than by volume.

Limits: no free plan, the Lite plan caps you at five clients, and the pricing page does not mention GST/HST.

Price: Lite $26.00 CAD, Plus $42.00 CAD and Premium $72.00 CAD a month.

What the first year really costs

Here is a worked example for the entry plans that state Canadian dollars, using each page's published offer and regular price, before GST/HST. Use the GST/HST calculator to add your province's tax.

Zoho Books Standard, billed yearly: C$15 × 12 = C$180.
FreshBooks Lite, monthly: 4 months at $5.20 CAD plus 8 months at $26.00 CAD = $228.80 CAD.
Xero Starter, monthly: 3 months at $5 plus 9 months at $25 = $240.
Wave Pro, billed yearly: $250 CAD.

From year two, at regular prices, FreshBooks Lite is $312.00 CAD a year and Xero Starter $300. QuickBooks is left out because its page does not name the currency.

The CRA rules your software has to support

Keep records for six years from the end of the last tax year they relate to. For individuals, including sole proprietors, the tax year is the calendar year; for corporations it is the fiscal period.
Keep records in Canada. The CRA says records must be kept at your place of business or residence in Canada, and that records kept outside Canada and accessed electronically from Canada are not considered records kept in Canada. You can write to your tax services office for permission to keep electronic records elsewhere. Ask your accountant how this applies to your cloud software, and keep your own exported copies on a computer or drive in Canada.
GST/HST starts at $30,000. You are a small supplier, and do not have to register, if you do not exceed $30,000 in taxable sales over four consecutive calendar quarters. Once registered, your software needs your tax rate and registration number set up. Our free invoicing software guide lists what a GST/HST invoice must show.

For self-employed people, the CRA's tax tips say the return is due June 15, but any balance owing is due April 30.

Your 15 minute month end checklist

Copy this into your calendar for the first Monday of each month:

Enter or import last month's bank and credit card transactions.
Match each one to a receipt, invoice or bill, and photograph any paper receipts.
Mark paid invoices as paid and chase anything over 30 days.
Check that each sale shows the right GST/HST, PST or QST rate for where you sold it.
Run a profit and loss report and save it as a PDF.
Export that month's records and save the file to a folder on a computer or drive in Canada named by year.

A revenue ceiling you will hit this year. If you expect to pass C$50,000, Zoho Books Free will not last; budget for Standard now.
Promo prices without the regular price. Write down the price after the discount ends before you enter a card.
No easy export. Before you commit, try exporting a report and your transactions. Six years of records you cannot get out is a problem.

Our take

This is a judgment based on the published features and pricing, not a hands on test.

Solo owner under C$50,000, GST/HST registered: start with Zoho Books Free. Tax returns, bank reconciliation and Canadian data centres on a free plan is the strongest free package here.

Solo owner who invoices a lot or expects to pass C$50,000: Wave Starter, because it has no revenue or invoice cap. Move to Pro when typing in bank transactions starts eating your evenings.

Small team with staff: Xero, because there are no per user fees, or Zoho Books Standard if three users is enough and you want the lowest yearly price.

Service business with a few big clients: FreshBooks Lite fits as long as you stay at five clients or fewer.

When the pick changes: if your accountant works in QuickBooks, use QuickBooks; the time saved at year end is usually worth more than the price difference. For more software picks by job, see the software hub.

Frequently asked questions

Is there completely free accounting software in Canada?

Yes. Wave Starter has no monthly fee and no invoice cap, and Zoho Books Free costs nothing while your revenue for the financial year stays under C$50,000. You may still pay card processing fees when customers pay online.

Does free accounting software handle GST/HST?

Zoho Books Free lists provincial and federal tax returns and combined GST/QST returns on its Canadian pricing page. Wave's pricing page does not describe sales tax features, so check its help centre for setup.

How long do I have to keep business records in Canada?

The CRA says six years from the end of the last tax year the records relate to, and longer in some cases, such as records for long term property transactions.

Is QuickBooks Online free in Canada?

No. QuickBooks offers a 30 day trial and a discount for the first months, but every plan on its Canadian pricing page is paid, starting with Lite at $20 a month (currency not stated on the page).

Best free accounting software for Canadian small businesses (2026): 5 options and their real limits