This comparison is for Canadian small business owners choosing between the two big cloud accounting systems: Xero and QuickBooks Online. Both bill in Canadian dollars, both connect to Canadian banks, and both prepare a GST/HST return. The differences show up in how they charge (Xero by plan with unlimited users, QuickBooks by user count), which plan you need for a USD account, and whether payroll comes from the same vendor.

This is a research-based comparison. We did not use either product hands-on. We compared both using their Canadian pricing pages, feature pages, and official help centre articles, plus CRA and Revenu Québec guidance. All prices are regular monthly list prices in CAD, checked in September 2026, before GST/HST. For the wider field, see our best accounting software in Canada review.

The quick answer

Pick QuickBooks Online if you have employees, work in Quebec or in French, or track inventory. Pick Xero if you need to give many people access, want a USD account for a team of four or more without paying CAD $110 per month, or file PST returns in BC, Manitoba, or Saskatchewan.

For a single owner with no staff and no USD account, QuickBooks EasyStart (CAD $30) is usually the better value, because Xero's CAD $25 Starter plan covers up to 20 invoices and 5 bills a month. The balance tips toward Xero as your headcount grows, since Xero charges no per-user fees while QuickBooks Plus covers up to five users.

FeatureQuickBooks OnlineXero
Plans (CAD/month)Lite $20, EasyStart $30, Essentials $70, Plus $110, Advanced $220Starter $25, Standard $60, Premium $80
Billing currencyCADCAD
Users1 (Lite, EasyStart), 3 (Essentials), 5 (Plus), 25 (Advanced)No per-user fees on any plan
Accountant accessEasyStart and upAny plan
Invoice limitsNone stated20 invoices and 5 bills/month on Starter
Multicurrency fromEssentials, $70Premium, $80
Inventory trackingPlus and upUp to 4,000 items
Own Canadian payrollAdd-on from $30 + $5/employeePartner apps only
GST/HST return report
QST return
French interfaceNot advertised
Free trial30 days30 days
Xero vs QuickBooks Online Canada, regular list pricing in CAD, September 2026.

How much do Xero and QuickBooks cost in Canada?

Xero costs CAD $25, $60, or $80 per month. QuickBooks Online costs CAD $20, $30, $70, $110, or $220 per month. Both show Canadian dollar prices on their Canadian sites.

Xero's Canadian plans:

  • Starter, CAD $25/month: send quotes and 20 invoices, enter 5 bills, reconcile bank transactions, Hubdoc document capture
  • Standard, CAD $60/month: unlimited invoices and bills, automated bill entry, budgets, custom dashboards
  • Premium, CAD $80/month: everything in Standard plus multiple currencies, a 180-day cash flow forecast, and KPI analysis

Xero also lists optional add-ons on its pricing page: Projects from CAD $10 per month and Expense Claims from CAD $5 per month.

QuickBooks Online's Canadian plans:

  • Lite, CAD $20/month: one user, two bank connections, no accountant access
  • EasyStart, CAD $30/month: one user plus your accountant, unlimited bank connections
  • Essentials, CAD $70/month: three users plus your accountant, bill management, time entry, and multicurrency. Intuit sells it from its own plan page but leaves it off the main pricing page.
  • Plus, CAD $110/month: five users plus your accountant, inventory, multicurrency, project profitability, and up to 40 classes and locations
  • Advanced, CAD $220/month: 25 users plus your accountant, unlimited classes and locations

Both were running promotions in September 2026: Xero at 80% off for the first three months, and QuickBooks at 90% off for six months (or a 30-day free trial instead). Budget for the regular price, since that is what you pay once the promotion ends.

Here is what the regular prices look like in four common situations:

Your situationQuickBooks OnlineXero
Solo, under 20 invoices a monthEasyStart, CAD $30Starter, CAD $25
Solo, more than 20 invoices a monthEasyStart, CAD $30Standard, CAD $60
Needs a USD account, up to 3 usersEssentials, CAD $70Premium, CAD $80
Needs a USD account, 4 or 5 usersPlus, CAD $110Premium, CAD $80
8 people need accessAdvanced, CAD $220Standard, CAD $60

Which is better if several people need access?

Xero is better for larger teams. It charges no per-user licence fees on any plan, while QuickBooks limits EasyStart to one user, Essentials to three, Plus to five, and Advanced to 25.

On QuickBooks, your accountant does not count toward the user limit on EasyStart and up; Lite does not include accountant access. If you, a bookkeeper, and a sales manager all need logins, you need at least Essentials at CAD $70 per month, or Plus at CAD $110 if you also track inventory. A fourth person moves you to Plus, and a sixth to Advanced at CAD $220.

On Xero, the same team can use Standard at CAD $60 per month. Note the Starter plan: its 20-invoice and 5-bill monthly cap means most businesses with a team will be on Standard anyway.

Which is cheaper for a USD bank account?

It depends on how many people need access. QuickBooks includes multicurrency on Essentials at CAD $70 per month for up to three users, a little less than Xero Premium at CAD $80. With four or more users, QuickBooks needs Plus at CAD $110, and Xero is cheaper.

If you sell to American clients, pay US suppliers, or hold a USD account, you want the software to track the foreign balance and exchange gains and losses. Xero says it supports over 160 currencies, with exchange rates updated hourly. QuickBooks' help centre says foreign currency values update every four hours.

QuickBooks' help centre also warns that once multicurrency is turned on, you cannot turn it off or change your home currency. It adds that QuickBooks Payments is not compatible with multicurrency. That is worth knowing before you flip the switch during a trial.

Neither vendor offers multicurrency on its entry plans, so this is the single biggest price step for many Canadian businesses. If a USD account is your only reason to upgrade, our accounting software review covers Zoho Books, which includes multicurrency at a lower price.

Which is better for payroll in Canada?

QuickBooks is the simpler choice for payroll, because it sells its own Canadian payroll add-on. Xero does not run payroll in Canada and relies on partner apps.

QuickBooks Payroll has three tiers, billed in CAD on top of your accounting plan:

  • Core: CAD $30/month plus $5 per employee
  • Premium: CAD $55/month plus $8 per employee
  • Elite: CAD $80/month plus $15 per employee

All three list auto payroll, tax forms, payroll reports, and Records of Employment. Premium and Elite add time tracking. For a business with three employees, EasyStart plus Payroll Core comes to CAD $30 + $30 + $15 = CAD $75 per month.

Xero points Canadian users to three payroll partners on its Canadian payroll page: Wagepoint, PaymentEvolution, and Payworks. Each is a separate subscription with its own pricing, and the payroll data flows into Xero through the integration. That setup works well for many businesses, but it is two vendors, two bills, and two support desks.

Our best payroll software in Canada review and Wagepoint vs QuickBooks Payroll comparison cover the payroll side in more detail.

Which connects to Canadian banks?

Both connect to the big Canadian banks. QuickBooks names more Canadian institutions on its official pages, while Xero documents direct feeds for Scotiabank and BMO.

We checked only each vendor's own pages:

  • QuickBooks: its Canadian accountant page shows RBC, TD, Scotiabank, BMO, CIBC, Vancity, PayPal, and American Express, and says bank and credit card transactions download nightly. A QuickBooks Canada resource article names RBC, TD, BMO, and CIBC. Lite includes two bank connections; EasyStart and up are unlimited.
  • Xero: Xero Central has direct-feed articles for Scotiabank and BMO, with BMO transactions arriving daily between 5:00 am and 7:00 am ET. Xero's Canadian bank feeds page says it connects to over 21,000 financial institutions worldwide, with no limit on the number of connections, and can import up to 12 months of history when you first connect.

Neither vendor publishes a complete list of supported Canadian banks and credit unions on the pages we checked. If you bank with a credit union, Desjardins, or National Bank, check the bank search inside each product's free trial before you commit.

How do they handle GST/HST, PST, and QST returns?

Both prepare a GST/HST return in the software, and neither files it with the CRA for you. Xero documents more provincial return reports; QuickBooks documents the GST/HST and Quebec filing steps in more detail.

Xero says GST/HST, British Columbia PST, Manitoba RST, Saskatchewan PST, and Quebec QST return reports are available on its Canadian site. If you collect PST in one of those three provinces, that is a real advantage.

QuickBooks prepares the return from its Sales Tax area. Its help article says you copy the amounts into your return in the CRA window, pay the CRA outside QuickBooks, and that marking the return as filed creates a journal entry for the amount owed. Quebec businesses use Revenu Québec's clicSÉQUR service to submit GST/HST and QST returns.

Either way you are submitting the numbers yourself. The CRA says registrants with reporting periods beginning in 2024 or later must file GST/HST returns electronically (charities and selected listed financial institutions excepted), through My Business Account, NETFILE, and other approved methods. Our GST/HST registration guide and rates by province cover the basics. This is general information, not tax advice; an accountant can confirm how to set up sales tax for your province and business.

Which is better for inventory?

QuickBooks includes inventory tracking from Plus (CAD $110). Xero's Canadian inventory page says you can manage up to 4,000 finished items, and points to inventory apps for more.

For a small product business, Xero's built-in inventory may be enough, and it avoids the jump to CAD $110 per month. If you need classes and locations to report by store or region as well, QuickBooks Plus covers both, with up to 40 classes and locations (unlimited on Advanced). For larger catalogues, both vendors expect you to add a dedicated inventory app.

If you sell online, our online store guide covers how ecommerce platforms fit alongside accounting software.

What about apps and your accountant?

Both have large app marketplaces. QuickBooks Canada says it connects to more than 450 business apps, and Xero's site says it integrates with over 1,000 apps. Check that the specific tools you use (payments, POS, payroll, CRM) list the Canadian version of the product you pick.

Your accountant's preference matters as much as the app count. If your accountant already works in one system, they can usually review and adjust your books faster, which can lower your year-end bill. Xero lets you invite your accountant on any plan at no extra cost. QuickBooks includes accountant access from EasyStart up, but not on Lite. Ask your accountant which one they use before you start a trial.

QuickBooks Online

Strengths

  • Own Canadian payroll add-on with ROEs, from CAD $30 plus $5 per employee
  • French interface setting available
  • Inventory, classes, and locations on Plus
  • Documented GST/HST and QST filing steps, including clicSÉQUR
  • Canadian pages name RBC, TD, Scotiabank, BMO, and CIBC for bank feeds

Good to know

  • Multicurrency starts on Essentials at CAD $70/month
  • Users per plan: 1 on EasyStart, 3 on Essentials, 5 on Plus, 25 on Advanced
  • Lite includes 2 bank connections; accountant access starts on EasyStart
  • Once turned on, multicurrency stays on

QuickBooks Online

4.5

Read our full QuickBooks Online review for every plan, the payroll add-on, and how GST/HST and QST filing works.

Xero

Strengths

  • No per-user licence fees on any plan
  • Multicurrency at CAD $80/month on Premium
  • Return reports for GST/HST, BC PST, Manitoba RST, Saskatchewan PST, and QST
  • Inventory for up to 4,000 items
  • 30-day free trial

Good to know

  • Starter includes 20 invoices and 5 bills a month; Standard is unlimited
  • Canadian payroll runs through partner apps such as Wagepoint
  • French interface not advertised on the Canadian site
  • Xero Central documents direct feeds for Scotiabank and BMO

Xero

4.0

Read our full Xero review for plans, bank feeds, and sales tax reports in more depth.

Who should pick which?

Choose based on your team size, currency needs, and whether you run payroll. Those three factors decide most cases.

Pick QuickBooks Online if:

  • You have employees and want payroll from the same vendor as your books
  • You are in Quebec or work in French
  • You are a one-person business that needs more than 20 invoices a month (EasyStart at CAD $30 beats Xero Standard at CAD $60)
  • You need inventory plus class and location reporting
  • Your accountant works in QuickBooks

Pick Xero if:

  • More than five people need access (Xero Standard at CAD $60 versus QuickBooks Advanced at CAD $220)
  • You need a USD account for four or more people (Xero Premium at CAD $80 versus QuickBooks Plus at CAD $110)
  • You file PST in British Columbia, Manitoba, or Saskatchewan and want a return report for it
  • You already use or prefer a payroll provider like Wagepoint
  • Your accountant works in Xero

If invoicing is most of your bookkeeping, our FreshBooks vs QuickBooks comparison may fit better. If you want to spend nothing to start, see Wave vs QuickBooks.

Our verdict

4.5

For most Canadian small businesses, QuickBooks Online is the stronger pick: its own payroll add-on with ROEs, accountant access from EasyStart at CAD $30 per month, a French interface setting, and documented GST/HST and QST filing steps. Xero is the better buy for teams of six or more, since it has no per-user fees, and for teams of four or more that need a USD account, since multicurrency costs CAD $80 on Xero versus CAD $110 on QuickBooks Plus. QuickBooks Essentials includes multicurrency for CAD $70, for up to three users. It is also worth a look if you file PST in BC, Manitoba, or Saskatchewan. Whichever you pick, ask your accountant which system they use first.

Frequently asked questions

Is Xero or QuickBooks cheaper in Canada?

It depends on the plan you need. For one person, QuickBooks EasyStart at CAD $30 per month is cheaper than Xero Standard at CAD $60 once you pass Xero Starter's 20-invoice cap. For multicurrency with up to three users, QuickBooks Essentials (CAD $70) is slightly cheaper than Xero Premium (CAD $80). For multicurrency with four or more users, or more than five users, Xero costs less than QuickBooks Plus (CAD $110) or Advanced (CAD $220).

Does Xero have payroll in Canada?

Not its own. Xero's Canadian payroll page points to partner apps: Wagepoint, PaymentEvolution, and Payworks. QuickBooks sells its own payroll add-on from CAD $30 per month plus $5 per employee.

Which one handles a USD bank account for less?

It depends on team size. QuickBooks includes multicurrency on Essentials at CAD $70 per month for up to three users, a little under Xero Premium at CAD $80. With four or more users, QuickBooks needs Plus at CAD $110, so Xero is cheaper. QuickBooks' help centre also says that once multicurrency is on, you cannot turn it off or change your home currency.

Do Xero and QuickBooks file my GST/HST return with the CRA?

No. Both prepare a return report in the software, and you submit the figures yourself through your CRA account or NETFILE. Quebec businesses file GST and QST with Revenu Québec, for example through clicSÉQUR.

Can I use Xero or QuickBooks in French?

QuickBooks Online has a French language setting under Account and Settings, according to Intuit staff on its Canadian help site. We found no French interface advertised on Xero's Canadian site, so confirm with Xero before signing up if you work in French.

Sources