How we evaluated
We ran the same Canadian contractor checklist through all five tools: create a client, build an invoice with 13% Ontario HST, record a material expense, and export a tax summary a bookkeeper could actually use. Pricing below is regular list pricing in CAD, checked September 2026. Promotional first-term discounts come and go, so we ignored them.
| Feature | FreshBooks | QuickBooks Online | Xero | Wave | Zoho Invoice |
|---|---|---|---|---|---|
| Starting price (CAD/month) | $26 | $30 | $25 | $0 | $0 |
| Free plan available | |||||
| Invoice cap on cheapest plan | Unlimited | Unlimited | 20/month | Unlimited | Unlimited |
| Users on cheapest plan | 1 | 1 | 1 | 1 | 3 |
| Per-line HST/GST tax rates | |||||
| Full double-entry accounting | |||||
| Canadian company | |||||
| Phone support |
1. FreshBooks: best overall for Canadian contractors
FreshBooks is built in Toronto, and it shows in the details that matter here. Tax handling feels designed for Canadian businesses rather than adapted from a US product, and when you call support, the agent understands what HST means without you explaining it.
Pricing is by billable client, which is worth understanding. Lite at CAD $26/month covers 5 billable clients with unlimited invoices and estimates. Plus at CAD $42/month covers 50 clients, and Premium at CAD $72/month is unlimited. Extra team members cost CAD $13/month each. If you invoice a small roster of repeat clients, this model is cheaper than it looks. If you invoice dozens of one-off clients, watch the tier you land in.
The mobile app is the best of the bunch for invoicing from a job site, and time tracking is built in, which matters if you bill hourly.
FreshBooks
Pros
- Toronto company with support that understands Canadian taxes
- Clean HST/GST/QST handling per invoice or client
- Best mobile app for invoicing on site
- Simple enough that your bookkeeper will not complain
- 30-day free trial, no credit card required
Cons
- No free tier
- Client-count pricing can sting if you invoice many one-off clients
- Lighter on project accounting than QuickBooks
- Extra team members cost $13/month each
2. QuickBooks Online: best for growing crews
QuickBooks is the heavyweight, and in Canada it is priced like one: EasyStart at CAD $30/month for one user, Essentials at CAD $70/month for three users, Plus at CAD $110/month for up to five users with class and location tracking, and Advanced at CAD $220/month for up to 25 users.
What you get for the money is depth. Payroll for Canadian employees, the most complete contractor reporting of any tool here, and an accountant ecosystem so large that your bookkeeper almost certainly already lives in it. If you have a crew, run payroll, or plan to hand clean books to an accountant at year end, switching costs are real and this is probably your answer.
The tradeoff is complexity. The interface is built for accountants first and contractors second, and the price climbs fast once you add payroll or extra users.
QuickBooks Online
Pros
- Deepest reporting and full Canadian payroll options
- Your accountant almost certainly already uses it
- Class and location tracking on Plus for job costing
- Huge integration ecosystem
Cons
- Steeper learning curve than FreshBooks
- Pricing climbs fast with users and add-ons
- Interface feels built for accountants, not contractors
3. Xero: best for clean books and multicurrency
Xero is the quiet professional of this list. Note that Canada uses different plan names than the US: Starter at CAD $25/month, Standard at CAD $60/month, and Premium at CAD $80/month.
The catch is on the entry tier. Starter caps you at 20 invoices and 5 bills entered per month, which a busy contractor can hit by the third week. Standard removes the caps entirely, and Premium adds multicurrency, which matters if you ever bill a US client in USD.
Where Xero wins is bank reconciliation and general ledger cleanliness. If you care about books your accountant never has to fix, Xero's reconciliation workflow is the best here. Invoicing itself is solid but less contractor-flavored than FreshBooks: no built-in time tracking culture, fewer job-site conveniences.
Xero
Pros
- Best bank reconciliation workflow of the five
- Standard tier at $60/month removes all invoice caps
- Multicurrency on Premium for USD billing
- Clean, fast interface
Cons
- Starter tier caps invoices at 20 per month
- No built-in time tracking
- Support is online only, no phone line
- Less contractor-specific than FreshBooks
4. Wave: best free option
Wave's Starter plan is genuinely free: unlimited invoices, estimates, bills, and bookkeeping records at CAD $0/month. The catches are that automatic bank imports and multi-user access are excluded from the free tier. Pro at CAD $20/month adds both, plus unlimited receipt capture.
Wave makes its money on payments and payroll. Card payments run 2.9% plus CAD $0.60 per Visa or Mastercard transaction (3.4% plus $0.60 for Amex), and bank payments run 1%. Payroll is CAD $25/month base plus CAD $6 per active employee and CAD $6 per paid contractor.
Wave is a Toronto company, which is a plus. The minus is support: there is no phone line. For a solo contractor sending a handful of invoices a month who is comfortable figuring things out alone, free is hard to argue with.
Wave
Pros
- Free invoicing, estimates, and accounting
- Canadian company
- Good enough for sole proprietors starting out
- Payroll available when you hire
Cons
- No phone support on any plan
- Free tier excludes bank imports and multi-user access
- Payment processing fees add up
- Quebec filers should verify QST handling before committing
5. Zoho Invoice: best free option for tiny teams
Here is the sleeper pick. Zoho Invoice is completely free, forever, and the free tier includes 3 users per organization, a client portal, time tracking, expenses, and recurring invoices. The official FAQ confirms there is no invoice cap.
The tradeoff is scope. Zoho Invoice does invoicing only. There is no accounting ledger, no payroll, no bank reconciliation. If you outgrow it, the natural step is Zoho Books, which is a separate paid product. Support on the free tier is email and community rather than phone.
For a two or three person contracting outfit that needs multi-user invoicing at zero cost, nothing else on this list comes close. Wave's free tier excludes multi-user; Zoho includes three seats free.
Zoho Invoice
Pros
- Completely free with 3 users included
- No invoice cap per the official FAQ
- Client portal, time tracking, and expenses included
- Good stepping stone into the Zoho ecosystem
Cons
- Invoicing only, no accounting ledger
- No phone support on the free tier
- Interface is functional rather than delightful
Our verdict
4.5Most Canadian contractors should start with FreshBooks. It handles Canadian sales taxes correctly out of the box, the mobile app is built for job-site invoicing, and support understands Canadian tax questions. Choose QuickBooks if you run payroll or have a crew, Xero if clean books and multicurrency matter most, Wave if you are solo and want to spend nothing, and Zoho Invoice if you need free invoicing for a two or three person team.
Frequently asked questions
Do I need software that handles HST, GST, and QST separately?
If you bill clients in more than one province, yes. Ontario charges HST at 13%, Alberta charges GST at 5%, and Quebec adds QST at 9.975% on top of GST. The tools on this list let you set tax rates per client or per invoice line so the math is automatic.
Is free invoicing software enough for a contractor?
For your first few invoices, yes. Once you need recurring invoices, expense tracking, multi-user access, or CRA-ready tax summaries, a paid plan usually pays for itself in saved bookkeeping time.
Can I send invoices in French?
FreshBooks and QuickBooks both support French-language invoices, which matters if you bill clients in Quebec.
What is the difference between billable clients and users in pricing?
FreshBooks charges by billable clients: Lite at CAD $26/month covers 5 clients you actively invoice. QuickBooks charges by users: EasyStart at CAD $30/month covers one user with unlimited clients. Pick the model that matches how your business grows.
Should I switch invoicing tools mid-year?
It is doable but annoying, since you need to migrate open invoices and client balances. If you are within a month or two of year end, most bookkeepers will tell you to wait until January and start clean.