This comparison is for Canadian small businesses that have outgrown a free bookkeeping tool, or are choosing their first paid one, and have narrowed it to Xero or Zoho Books. Both prepare Canadian sales tax returns, both bill in Canadian dollars, and neither sells its own payroll here. The real differences are price, users and multicurrency.
This is a research-based comparison. We did not use either product hands-on. We compared both using their Canadian pricing pages and help documentation, checked in October 2026. For the full write-ups, see our Zoho Books review and Xero review.
The quick answer
Choose Zoho Books if you want the lowest cost. It is cheaper at almost every size, has a free plan under C$50,000 in revenue, and includes multicurrency at less than half Xero's price. Choose Xero if you have a large team in the books, want an app marketplace of more than 1,000 apps, or your accountant already works in Xero.
| Feature | Zoho Books | Xero |
|---|---|---|
| Free plan | Yes, under C$50,000 yearly revenue | |
| Cheapest paid plan (CAD/month) | $20, or $15 billed annually | $25 (Starter) |
| Invoice limit on the cheapest paid plan | 5,000 a year (Standard) | 20 a month, plus 5 bills (Starter) |
| Unlimited invoices from (CAD/month) | No plan is unlimited; Elite allows 100,000 a year | $60 (Standard) |
| Annual billing discount | ||
| Users included | 1 + accountant (Free) to 15 | Unlimited, no per-user fees |
| Multicurrency from (CAD/month) | $35, or $30 billed annually | $80 (Premium) |
| Automatic bank feeds | Standard and up | Every plan |
| GST/HST, PST, RST and QST return reports | ||
| Combined GST/HST-QST return | Not listed | |
| Files returns for you | ||
| Own Canadian payroll | ||
| Card payments through Stripe | 2.9% + C$0.30 (Stripe's rate) | 2.9% + C$0.30 |
Pricing in Canada
Zoho Books costs less at every comparable tier. Xero bills monthly only. Zoho Books offers a discount for paying yearly.
| Plan level | Zoho Books (CAD/month) | Xero (CAD/month) |
|---|---|---|
| Free | $0, under C$50,000 revenue | None |
| Entry | Standard: $20, or $15 billed annually | Starter: $25, with 20 invoices and 5 bills a month |
| Mid | Professional: $35, or $30 billed annually | Standard: $60 |
| Multicurrency | Professional: $35, or $30 billed annually | Premium: $80 |
| Higher | Premium: $50, or $40 billed annually | No higher plan |
Both list prices before tax. Xero's pricing page says its subscriptions renew monthly until cancelled. In October 2026, Xero was offering new Canadian customers 80% off the first three months, plus a 30-day free trial. Budget for the regular price, since that is what renews. Zoho Books offers a 14-day free trial of its paid plans.
Xero Starter suits lighter volumes. Twenty invoices and five bills a month fits a side business; most businesses doing regular bookkeeping will look at Standard. Most Xero customers will compare Xero Standard at CAD $60 with Zoho Books Standard at C$20, or C$15 billed annually. Zoho Books Standard allows 5,000 invoices a year.
Users: where Xero pulls ahead
Xero charges no per-user fees on any plan, so you can give logins to staff, a bookkeeper and your accountant without paying more. Zoho Books includes a set number of users per plan and charges for extras.
- Zoho Books Free: 1 user plus 1 accountant
- Standard: 3 users
- Professional: 5 users
- Premium and Elite: 10 users
- Ultimate: 15 users
- Extra users: C$4 per user a month, or C$3 billed annually
That only changes the answer for larger teams. Comparing Zoho Books Premium plus extra users with Xero Standard at CAD $60, Zoho Books stays cheaper up to 12 users on monthly billing and up to 16 on annual billing. From about 13 people in the books on monthly billing, Xero Standard is the cheaper of the two.
Multicurrency: the biggest price gap
If you bill US clients in USD or hold a USD bank account, Zoho Books is far cheaper. Multicurrency starts on Zoho Books Professional at C$35 a month, or C$30 billed annually. On Xero it starts on Premium, at CAD $80 a month.
Over a year, that is C$360 for Zoho Books on annual billing against CAD $960 for Xero. Xero says its multicurrency supports more than 160 currencies with hourly exchange rate updates. Our guide to invoicing US clients from Canada covers the tax side.
Bank feeds
Xero includes bank feeds on every plan. Zoho Books includes them from Standard up. The Free plan uses statement imports.
Xero says it connects to more than 21,000 financial institutions worldwide, with no limit on bank accounts and up to 12 months of history on first connection. Its help centre documents direct feeds for Scotiabank and BMO.
Zoho Books uses Yodlee, a third-party provider. Its help centre says feeds are fetched every 24 hours for banks without multi-factor authentication. Where a bank uses it, you refresh the feed yourself, once a day at most. On the Free plan, Zoho accepts statement files and PDF statements from National Bank, CIBC, RBC and Kindred Credit Union.
Neither publishes a full list of Canadian banks. Check yours during the free trial before you pay.
GST/HST, PST and QST
On sales tax, the two are close. Both prepare return reports for GST/HST, British Columbia PST, Manitoba RST, Saskatchewan PST and Quebec QST, and both lay them out by the form's lines. Neither files for you.
Zoho Books adds one Quebec feature: a combined GST/HST-QST return on every plan, as long as both returns use the same reporting period. Xero's Canadian sales tax page lists a QST return report but doesn't mention a combined return.
The CRA says most GST/HST registrants with reporting periods beginning in 2024 or later must file electronically. With either product, you copy the figures into NETFILE or My Business Account. Rates by province are in our GST/HST and PST rates guide.
Payroll
Neither sells its own payroll in Canada. If you have employees, you add a payroll provider either way.
Xero's Canadian payroll page points to three partners that connect to Xero: Wagepoint, PaymentEvolution and Payworks. It says Wagepoint now connects with a single login and syncs after every pay run. Zoho's Canadian Books pricing page lists no payroll option, so you would pick a provider and record payroll from its reports. Our Wagepoint review and best payroll software in Canada cover the options.
If you want payroll from the same vendor as your books, look at QuickBooks Online, which sells its own Canadian payroll add-on. See our Xero vs QuickBooks comparison.
Apps, inventory and your accountant
Xero has the larger ecosystem. It says it connects to more than 1,000 apps, and its inventory covers up to 4,000 finished items on every plan. Zoho Books includes inventory from Professional, connects to other Zoho apps such as Zoho CRM, and adds advanced inventory, warehouses and Shopify, Etsy and Amazon connections on its Elite plan.
Ask your accountant which one they use. If they already work in one of them, choosing the same one can shorten year-end work, whichever is cheaper on paper.
Which should you choose?
Choose Zoho Books if you:
- Want the lowest monthly cost, or a free plan while revenue is under C$50,000
- Hold a USD account or bill in USD, and don't want to pay CAD $80 a month for it
- Are in Quebec and want a combined GST/HST-QST return
- Have fewer than about a dozen people in the books
Choose Xero if you:
- Have a larger team, or many part-time users such as staff, a bookkeeper and an accountant
- Want bank feeds on the cheapest plan, or bank with Scotiabank or BMO
- Rely on third-party apps for payments, POS, ecommerce or payroll
- Work with an accountant who already runs your books in Xero
Zoho Books
Xero
Our verdict
4.0For most Canadian small businesses, Zoho Books is the better value. It costs less at every tier up to about a dozen users, has a free plan under C$50,000 in revenue, and charges less than half as much for multicurrency. Its sales tax coverage matches Xero's, with a combined GST/HST-QST return on top. Xero earns its price for larger teams, since it never charges per user, and for businesses that depend on its app marketplace or an accountant who works in Xero.
Frequently asked questions
Is Zoho Books cheaper than Xero in Canada?
Yes, at most business sizes. Zoho Books has a free plan under C$50,000 in yearly revenue, and its paid plans start at C$20 a month (C$15 billed annually) against Xero's CAD $25 Starter and CAD $60 Standard. Xero becomes cheaper once you have about 13 people in the books on monthly billing, because it charges no per-user fees.
Which is better for a USD bank account?
Zoho Books, on price. Multicurrency starts on Zoho Books Professional at C$35 a month, or C$30 billed annually. On Xero it starts on Premium, at CAD $80 a month.
Do Xero or Zoho Books file my GST/HST return?
No. Both prepare return reports for GST/HST, B.C. PST, Manitoba RST, Saskatchewan PST and Quebec QST, and you submit the figures to the CRA or Revenu Québec yourself. Zoho Books can also generate a combined GST/HST-QST return for Quebec.
Do Xero or Zoho Books include payroll in Canada?
Neither sells its own Canadian payroll. Xero's Canadian payroll page points to Wagepoint, PaymentEvolution and Payworks, which connect to Xero. Zoho's Canadian Books pricing page lists no payroll option, so you would use a separate provider.
Does Xero have a free plan?
No. Xero offers a 30-day free trial and, in October 2026, 80% off the first three months for new customers. After that you pay the regular price from CAD $25 a month. Zoho Books has a permanent free plan for businesses under C$50,000 in yearly revenue.
Sources
- Xero Canada pricing plans (checked October 2026)
- Xero Canada: Stripe pricing and fees (checked October 2026)
- Xero Canada: bank feeds (checked October 2026)
- Xero Canada: payroll (checked October 2026)
- Xero Canada: inventory management (checked October 2026)
- Xero Canada homepage (checked October 2026)
- Xero Canada: sales tax reports (checked September 2026)
- Xero Canada: multicurrency accounting (checked September 2026)
- Xero Central: Scotiabank direct feeds (checked September 2026)
- Xero Central: BMO direct feeds (checked September 2026)
- Zoho Books Canada pricing (checked October 2026)
- Zoho Books Canada features (checked October 2026)
- Zoho Books: Combined tax returns (checked October 2026)
- Zoho Books: Bank feeds (checked October 2026)
- Zoho Books: Add transactions and import statements (checked October 2026)
- Stripe Canada pricing (checked October 2026)
- CRA: How to file your GST/HST return (checked October 2026)