Best Accounting Software Canada — Top 11 Reviewed for 2024

If you have a business in Canada, it is essential to have accounting software to keep track of your financial health. These apps allow companies to enter, track, and report their financial data via the cloud or locally. 

Selecting the right software for your business depends on its size and needs. Luckily, there are many accounting software options out there, and they come at different price levels. This can be both helpful and overwhelming. Figuring out which features your organization really needs can clear up confusion and help you know what to look for.

To help you separate the wheat from the chaff, our list of top 11 best accounting software Canada analyzes everything from simple accounting software for solopreneurs to feature-packed apps that scale with your company.

Best Accounting Software in Canada 2024

There is a wide variety of accounting software in Canada that can provide tax reporting capabilities and is robust enough to integrate with the systems of most outside accounting firms.

Balancing, analyzing, and monitoring an organization’s money flow is vital to determine its progress. Therefore, recording and tracking your revenue and expenses will be much easier with the right bookkeeping and accounting software since the entrepreneur or manager will have more time to focus on strategy and revenue growth.

Here are the 11 best accounting programs that cater to small, medium-sized, and large Canadian companies. 

1. 1. Intuit QuickBooks — Overall best accounting software in Canada 
   2. FreshBooks — Excellent system for invoicing 
   3. Sage Accounting — Best small business accounting software for multiple users
   4. Zoho Books — Outstanding platform for micro-businesses
   5. Xero — Great solution for growing businesses
   6. FreeAgent — Perfect user-friendly software accounting platform
   7. Bonsai — Quality Canada Accounting Software for Freelancers
   8. TaxSlayer — Great budget-friendly software accounting program
   9. Liberty Tax — Superb bookkeeping solution for small companies 
   10. Wave Accounting — Best free accounting software
   11. Kashoo — Great accounting software for startups

Best Accounting Software Canada for 2024 Reviewed

We will discuss each accounting software in detail in this section, including its pros and cons, pricing system, and whether it suits a particular type of business. 

1. Intuit QuickBooks — Best Overall Accounting Software in Canada

Intuit has been a pioneer in the accounting world since the company was founded in 1983. In addition to offering programs for businesses, accountants, and individuals, it provides one of the most well-known accounting software programs — QuickBooks. With over a million companies processing payroll through QuickBooks (many of them being in Canada), this software tops our list as the best accounting software in Canada. 

Intuit’s QuickBooks accounting software is a superior choice for small businesses, especially those that regularly work with bookkeepers or accountants. Scalability, flexibility, and functionality are all critical features of its four plans and add-on services.

All plans are well-equipped with the essential elements to run payrolls, such as unlimited payroll runs and wage garnishments. All of them are cloud-based and include state and federal tax filings. But if you need access to features like time-tracking, same-day direct deposit, and HR support, you’ll have to subscribe to higher-tier plans. 

Other useful features of the basic plan include record-keeping and reporting, inventory management, hundreds of app integrations, cash flow, and expense management. 

As a bonus, Intuit QuickBooks designed payroll software that catered to small and medium-sized businesses and specialized plans for those already using QuickBooks for accounting.

Its user-friendly interface requires some learning, especially if you’re unfamiliar with accounting basics. There is also a dedicated mobile app that will facilitate the entire accounting process even when you are on the go.

Intuit QuickBooks is undoubtedly one of the best accounting software for small businesses on the market. But if you are still not sure the Intuit QuickBooks program is the right fit for your company, you can test it by activating their 30-day free trial. 

Pros: 

• Numerous customizable reports 
• Enhanced onboarding
• Hundreds of third-party integrations
• Easy to share information with your accountant
• Excellent user interface and navigation
• Supports projects, payroll, and many add-ons

Cons:

• Not intended for large companies
• Steep learning curve 

2. FreshBooks — Best System for Invoicing 

The FreshBooks cloud-based accounting software caters to small businesses and is an excellent choice for freelancers and independent contractors. This Toronto-based company’s product was initially designed to manage invoices, and it eventually evolved into an accounting application used in more than 160 countries.  

Aside from being easy to use, FreshBooks supports expansion as your business grows. The dashboard will give you a detailed overview of your revenue streams, profit and loss, and expenditures. And if you are frequently on the go, the mobile app allows you to track mileage and time and access the app’s basic features.

Furthermore, you can create unlimited invoices, enter unlimited expenses, accept credit card payments online, and set up ACH bank transfers using the software. And thanks to the newly added features, you can now perform advanced searches, download your statements, connect to Dropbox, and do much more.

Depending on your budget and client base, you can opt for one of the four pricing plans — Lite, Plus, Premium, and Select. You can also activate their 30-day trial, explore the package, and cancel if it doesn’t suit your needs. But whichever plan you choose, you’ll find impressive features. 

With an easy setup and configuration process, cost-effectiveness, and robust features, FreshBooks is a mighty accounting online software that makes bookkeeping easier. 

Pros:

• Excellent invoicing services
• Time and mileage tracking
• Delightful user-experience
• Proposal, project, retainers support
• Extensive features
• Quality iOS and Android app

Cons:

• Fewer options for high-volume users
• Limited invoice customization

3. Sage Accounting — Best Small Business Accounting Software for Multiple Users 

A British company, Sage, has been offering accounting software solutions for many years. As its name implies, Sage Business Cloud Accounting, the business’s latest product, provides its customers with flexibility and scalability and boosts productivity with a cloud-based system. Thus, we are not surprised it has been a favorite Canadian software for small businesses. 

The company is constantly evolving, and it is no surprise it has unique products dedicated to small businesses, medium-sized businesses, and professional accountants and bookkeepers. Additionally, another company’s offering —Sage 50 Accounting software — combines the power of desktop accounting software with the convenience of the cloud.

You can try out the software features through their 30-day free trial period, and if you like it, you can easily subscribe to one of the two packages — Sage Accounting Start and Sage Accounting. Only then will you be able to experience the full potential of the Sage cloud-based service. 

Its latest version, Sage Business Cloud Accounting, is perfect for small businesses needing an easy-to-use accounting solution. Business owners can easily track sales, create and receive reports, pull contacts together, create and send invoices, and stay in the loop of other bookkeeping duties. 

You can access the platform from your computer, tablet, or phone as an added benefit. This way, no matter where you are, you’re always in control of your accounting. Realizing that people need varying accounting solutions, Sage provides versions for different operating systems (Windows, Mac, Android, iOS). 

Regarding user-friendliness, Sage’s software is not the easiest to master. Fortunately, the knowledgeable customer support team will answer all of your inquiries. 

Pros:

• Comprehensive reporting and inventory tracking
• Cloud-based solution
• Impressive apps
• Affordable monthly costs
• Double-entry accounting

Cons:

• No payroll option
• Time tracking not included in any plan

4. Zoho Books — Outstanding Platform for Microbusinesses

Zoho Books provides a comprehensive set of cloud-based accounting tools for businesses of all sizes. In particular, it is perfect for microbusinesses — especially those already using Zoho applications to manage their inventory, invoicing, and customer relationships.

Additionally, Zoho Books is entirely scalable, so businesses with larger operations or anyone expecting to grow can also use it. Besides its solid desktop version, Zoho Books has a robust mobile app supporting iOS, Android, and Windows operating systems. 

Zoho Books features five packages, the basic one being free. Since there can be only one user and one accountant, it is ideal for freelancers and sole traders. The only catch is that it is for businesses with a revenue of less than $50,000 per year. But if you want to add more users and utilize advanced features, you can easily subscribe to any of the higher-tiered plans. 

Zoho Books has an impressive arsenal of tools and options, despite being cloud-based free accounting online software. This includes detailed invoicing, estimating, a client portal, tracking expenses, billing, tracking banking movements, managing projects, and keeping tabs on inventory levels.

Additional features include solid reporting, workflow automation, and the convenience of having all of your documents in one place. Plus, you can integrate online payment methods such as Stripe, PayPal, Square, and many more. 

With the possibility to boost your packages with numerous add-ons, an easy setup process, and many tools that keep your business accounts in good shape, Zoho Books deserves a spot on our list of outstanding personal accounting software. 

Pros:

• Generous support options
• Low cost
• Multiple payment gateways
• Document management
• Integration with SurePayroll
• Ease of use

Cons:

• Limited for larger organizations
• Lack of payroll

5. Xero — Great Solution for Growing Businesses

Xero is an accounting software product that allows businesses to manage their finances regardless of location. Unlike some competitors, it is less expensive and does not charge extra for additional users, making it an affordable solution for growing businesses.

Adding an unlimited number of users and inventory management in all plans, customizing reports, the dashboard, automatic bank feeds, and backups are only a few benefits of using Xero accounting software. Using the dashboard, you can create invoices, bills, purchase orders, and more in one click.

With over 800 apps available through Xero, you can expand the feature set and add inventory management, invoicing, time tracking, expenses, and more features not included in the base package. 

This provider offers three packages — Early, Growing, and Established — each is adapted for businesses of different sizes. The basic level is $12 and is quite affordable. There is a monthly fee of $6 per person for Gusto payroll that you can add to any plan for an additional $40.

Xero is available for Android and iOS devices. Its UI is generally easy to maneuver, but some parts need more time to master. In this case, you can contact customer support for help or activate the 30-day free trial and test the features at your own pace. 

Pros:

• All plans support unlimited users
• Basic inventory management
• Very scalable system
• Sleek interface

Cons:

• Learning curve

6. FreeAgent — Perfect User-Friendly Software Accounting Platform

With nearly 100,000 users, FreeAgent offers all-in-one cloud-based accounting software for small businesses. It is a powerful online bookkeeping solution for managing projects, tracking invoices, and organizing expenses. Although the cost may not be ideal for a sole proprietorship, it is excellent for medium-sized businesses.

FreeAgent offers a single-pricing package. You can choose to pay annually rather than monthly, and you’ll receive a discount. Plus, a 30-day free trial doesn’t require credit card information, and you can cancel it anytime. 

The plan will cost you $12 for the first six months and $24 for every subsequent month. Nevertheless, there are many features, including unlimited users, invoices and estimates, expense claims and tracking, project management, sales tax, and many others.

The platform’s well-designed and intuitive UI facilitates navigation. The company uses 128-bit SSL encryption, intrusion detection, and 24/7 monitoring to keep your sensitive data secure. 

Pros:

• Unlimited users
• Reasonable monthly cost
• International invoicing
• Well-designed UI
• Simple account setup

Cons:

• Expensive for sole proprietors
• No cash-basis accounting

7. Bonsai — Quality Canada Accounting Software for Freelancers

Bonsai is a tool adored by over 500,000 businesses — mainly small businesses and self-employed individuals who need a helping hand in managing their business, taxes, and bookkeeping.

What makes this accounting software impressive lies in its automation capabilities. From automatically sending payment reminders, to tracking every expense for you, this tool was made to save you time and boost your business’ efficiency.

On top of this, it’s great for small businesses that need a solution that’ll handle all the small nitty-gritty aspects of day-to-day business operations and speed up their processes.

One way Bonsai offers this is with its pre-made templates — from invoices to quotes and beyond — pick one of the many on offer and simply customize it to make it your own.

With automation, templates, and having all your business affairs (documents, projects, profits, expenses, deductions, etc.) under one roof, Bonsai helps you get paid, manage your finances, prepare for tax season, and save countless hours running your small business.

Pros:

• Offers superb value for money
• Great for automating tedious tasks
• Incredibly simple to use and navigate
• All-in-one accounting and tax solution

Cons:

• Customization could be better
• Lacks integration support

8. TaxSlayer — Great Budget-Friendly Software Accounting Program

This Georgia-based company, TaxSlayer, was founded in 1965. Initially, it offered traditional tax preparation services, but over time, it became a software provider for accountants and professional tax preparers. It eventually became tax filing software for the average taxpayer.

TaxSlayer simplifies filing returns for people who don’t want a lot of assistance. You can easily do it with a bit of knowledge about what types of income you are required to report and which deductions and credits you are entitled to. For more assistance, upgrade to a higher-tiered plan to receive professional advice via live chat, email, or telephone on the sections applicable to your tax situation.

Depending on your income level, tax situation, and support preferences, this tax accounting software offers four package tiers — Simply Free, Classic, Premium, and Self-Employed. It is a good idea to start with the Simply Free edition if you are unsure which version you need.

Simply Free gives you one free state return and no fee for your federal return. For simple tax situations and little help, TaxSlayer may not cost anything.

Pros:

• Inexpensive software
• Polished used experience
• Supports all major IRS forms
• Great customer service via phone and email
• Step-by-step guidance for quick filing 

Cons:

• Tax-free assistance only available for Premium and Self-employed users
• Impossible to upload your 1099 or W-2 

9. Liberty Tax — Superb Bookkeeping Solution for Small Businesses

As a tax preparation company, Liberty Tax has been around since 1997, and it operates more than 3,000 brick-and-mortar locations across the United States and Canada. In addition to having some of the best tax accounting software on the market, Liberty Tax allows you to file taxes online, in-person, with a secure drop-off, and on mobile. 

The most relevant features of this system include audit assistance, a free office double check, free competitor import, and a tax organizer that keeps your tax data in one place. Its tax debt resolution feature makes Liberty Tax one of the best places to do taxes online. Plus, you can consult the company’s experts if you have issues with the IRS.

Additionally, there are four main categories of assets on the platform — Tax tools, Tax resources, Tax information, and IRS resources. What’s more, there are four Liberty Tax calculators, including Refund, Liberty tax return, Mileage reimbursement, and W-4 withholding. 

This provider offers four pricing plans, none of which is the cheapest tax option. However, they do provide good value for money. Plus, users can upgrade to a more advanced plan with frequent discounts.

Liberty Tax is an excellent choice for those looking for a provider with a solid online and offline presence.

Pros:

• Great mobile versions
• Simple, clean user interface
• Quick loading

Cons:

• Clunky navigation
• Not the cheapest way to file taxes

10. Wave Accounting — Best Free Accounting Software

Wave Accounting software is an excellent choice if you’re looking for free software for your small business. Even those without accounting experience can use this financial management platform since it is user-friendly and approachable. In contrast, it is not suitable for rapidly growing companies since it does not offer the option to upgrade to a higher-tier plan. 

As we already said, the platform is free to use with no limit, so features like customizable unlimited invoicing, adding additional users (at all levels), unlimited finance, basic inventory, contact management, and expense tracking are at your disposal. However, you’ll be charged a fee if you would like to add additional services such as payroll, payment processing, professional bookkeeping, and tax services.

Since Wave’s UI is well-designed, navigating it is a breeze. Wave supports several integrations, including Zapier, PayPal, Etsy, Shoeboxed, and others. 

Although Wave is free accounting online software, users don’t have to worry about data security. The team behind the software performs regular backups and employs 256-bit data encryption. 

Pros:

• Numerous features
• Free software
• Double-entry accounting
• Unlimited users with varying user permissions
• Unlimited income and expense tracking

Cons:

• Limited mobile apps
• Poor customer support

11. Kashoo — Grat Accounting Software for Startups

Designed for small-business owners, Kashoo is cloud-based accounting software that helps entrepreneurs manage their accounts and bookkeeping without the need for professional help. Thus, it is best suited for those who are just starting — freelancers, solopreneurs, and contractors. 

Kashoo offers a few pricing plans which you can pay monthly or annually. And for those who only need invoicing, there is a forever free plan. For all the other features, users need to subscribe. However,  a 14-day free trial allows you to test the app. It doesn’t require a credit card, and you can cancel the subscription anytime. 

The cloud-based nature of Kashoo makes it accessible on nearly any device with internet connectivity. It also provides a brilliant iPad app that works offline during internet outages. Unfortunately, an Android mobile app is still unavailable. 

Kashoo’s selection of features is quite decent. Basic features include invoicing, contact management, expense tracking, bank reconciliation, project management, reports, sales tax, and others. 

Despite lacking estimates and time tracking features, Kashoo still receives many positive reviews from its clients, who enjoy it as simple accounting software that anyone can use.

Pros:

• Unlimited users included
• Generally affordable 
• Simple, easy-to-use, web-based platform
• Great iOS app
• Good income and expense management

Cons:

• No Android app
• Limited integrations

Best Accounting Software Canada

To remind you of the key points of each accounting online software, we have stacked them in a table below. Let’s take a look once again at their starting price, key features, customer support, and whether they have free trials or not. 

Best Free Accounting Software Canada

Free accounting software makes it easy for freelancers and sole proprietors to track earnings and expenses. Free Canadian accounting software should ideally support tracking all income and expenses, importing bank account transactions, and producing profit and loss statements, balance sheets, and cash flow statements.

In your search for free accounting software, Wave is a top choice. This app lets you connect unlimited bank accounts and credit cards to your books. In addition, you can track unlimited income and expenses, as well as add collaborator guests free of charge. You will be able to send invoices and scan receipts also for free. Plus, the program is intuitive and easy to use, requiring little or no training.

It’s worth noting that not all features are completely free. You will need to pay if you wish your invoiced customers to make payments online directly through the invoice. Wave also charges a monthly base fee of either $35 or $20, plus $4 per employee and contractor on your payroll.

Still, Wave accounting software is a more robust and feature-rich free accounting online software. It can be adapted to suit the needs of independent contractors, sole proprietors, and small businesses. 

Best Accounting Option for Sole Traders Canada

Every successful organization relies on good accounting practices. The best accounting software can help self-employed people keep their businesses running smoothly. Intuit QuickBooks tops the list as the best accounting system for sole traders. 

Aside from being one of the most popular accounting programs worldwide, QuickBooks is also well-equipped with training resources, affordable, and easy to use. The software was specifically designed for freelancers and sole traders, allowing them to collaborate with their accountants. 

It comes in three variations — Simple Start, Essentials, and Plus. Out of them, Essentials is the best place to start for solopreneurs. As your business grows and evolves, you can move up to Plus. The only disadvantage is that you won’t be able to downgrade your subscription once upgraded. 

Billable hour tracking, invoice creation, double-entry accounting, and payment processing are features offered by QuickBooks. By scanning receipts with their mobile phone, sole traders can keep track of receipts on the go without missing a thing.

What Are the Benefits of Using Accounting Software in Canada?

Bookkeeping for a small business can be challenging and time-consuming, while accountants in growing businesses face even greater challenges. That’s why many companies choose accounting software. 

Let’s look at the benefits of this type of software for business owners. 

Time and Cost Efficiency

It is well known that bookkeeping is a very time-consuming task due to the volume of transactions that need to be recorded and counted. However, accounting systems automate all procedures to speed up the process. This way, the software saves you a lot of time, and you don’t have to hire an additional accountant.

Minimal Errors

Calculations done manually often lead to multiple human errors. Accounting systems, however, automate the calculation process.  With them, all the necessary calculations are conducted for you, ensuring accuracy and avoiding mistakes.

Real-Time Data

With accounting software, you can track financial data for your business in real-time. You can always see how much money goes in and out. Real-time data can help you develop the right financial management strategies and plans.

High Flexibility

Users can perform accounting tasks from anywhere with web-based accounting software. To use the app, users only need access to the internet. Plus, software like this can be used on smartphones and tablets, allowing users to access their financial statements regardless of where they are. 

Centralized System

The accounting software system generates financial information and links it to other matters related to your finances, making your processes more centralized. Some features include CRM, invoicing, payroll solutions, and inventory management. Therefore, one product can centralize and automate many parts of your business, saving you time and money. 

Financial Reports and Inventory Tracking

Accounting software can quickly provide a financial report and show you how you are performing financially. These reports will help you make informed decisions and make your business more profitable. They also include different taxes you are obliged to pay, so the software enables you to comply with your tax requirements. 

Software like this also has inventory tracking capabilities. The software provides real-time data on stock levels, so you can track inventory levels and place orders quickly.

Prompt Invoicing

Accounting software helps you easily create, customize, and print invoices. Customization allows you to add your logo and company name to the invoice, thus making your business more trustworthy. Moreover, you can email your invoices to your client and send them on the go, which is more convenient than doing it the old-fashioned way. 

How We Evaluated the Best Accounting Software in Canada

Excellent accounting software must be ideal for any business, regardless of the industry or size. Nowadays, you can find a plethora of them on the market. Some provide better functionality, while others provide better scalability options. Although it can be pretty challenging, there are many things to consider when choosing an online accounting system that is the right fit for your business.

Here are the essential features we watched out for that can accelerate your company’s growth.  

Cloud Applications

When analyzing software, we look into the available cloud applications. They come with multiple benefits, including being accessible from anywhere with an internet connection, and you don’t need servers or licenses to run them. You can use them on a tablet, laptop, or smartphone, and you don’t need to worry about keeping the software up-to-date since upgrades and patches are installed on the server. Thus, cloud-based business applications that integrate with accounting software are highly desirable.

Add-on Features

Add-ons enhance the functionality of a business accounting program. With them, you can access the software remotely, integrate it with your e-commerce software, and accept online payments. Adding tax software to accounting software is also possible with some add-ons. 

User-Friendliness

This is another aspect we look into, mainly because not all people are tech–savvy. Accounting software must have a gentle learning curve and be user-friendly so that everyone on your team can use it with minimal effort. The more easy-to-understand software is, the greater the chances of implementing it to its full potential.

Error Identification and Prevention

Your organization can benefit immensely from the accuracy and efficiency accounting software brings. By doing so, errors can be minimized if not eliminated. Therefore, it is vital to have software error-checking features. Additionally, we look for features that help prevent users from making errors, such as automatic calculations.

Easy Contact With Stakeholders

To coordinate with customers, banks, and all stakeholders, your company needs accounting software that facilitates all of these processes. Thus, it is an essential element of each accounting program to keep track of customer and supplier payments, bank statements, and balances, and monitor and manage credit.

Security of Sensitive Data

Sensitive financial information should never be compromised. Therefore, choosing accounting software with a complete and solid security system is crucial. 

Other vital features that a system like this can include are user-based access (only you and other authorized users can access the software) and task-limited access (users have access only to tasks they are assigned to). 

Integrated Billing, Invoicing, and Inventory Management Features

The core functions of accounting systems may vary, and almost all of them provide basic billing, invoicing, and inventory management capabilities. Integrating these into one system will save you a lot of time when transferring or migrating data between them.

In addition, these accounting software guides can be beneficial if you want to learn more about how these platforms work. 

Conclusion — What’s the Best Accounting Software in Canada?

Intuit QuickBooks takes the top spot on our list of the top 11 best accounting software in Canada. With a wide array of features, advanced accounting capabilities, and an impressive number of integrations, the software is ideal for small businesses and those who want to process all their transactions and accounting in one place. 

However, the competition is tough. Here’s a quick recap:

1. Intuit QuickBooks — Overall best accounting software in Canada 
2. FreshBooks — Excellent system for invoicing 
3. Sage Accounting — Best small business accounting software for multiple users
4. Zoho Books — Outstanding platform for micro-businesses
5. Xero — Great solution for growing businesses
6. FreeAgent — Perfect user-friendly software accounting platform
7. Bonsai — Quality Canada Accounting Software for Freelancers
8. TaxSlayer — Great budget-friendly software accounting program
9. Liberty Tax — Superb bookkeeping solution for small companies 
10. Wave Accounting — Best free accounting software
11. Kashoo — Great accounting software for startups

Since every company has unique needs and operation modes, we recommend taking Intuit QuickBooks and the other 10 software on the list for a spin to see which one is right for your business.

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