Xero is a solid full accounting system for Canadian small businesses that need several people in the books or file PST returns in British Columbia, Manitoba, or Saskatchewan, and we rate it 4 out of 5. QuickBooks Online is the closer fit if you want payroll from the same vendor or a French interface, and most businesses doing full bookkeeping will want Standard rather than the CAD $25 Starter plan.

This review is for Canadian owners comparing cloud accounting software who want to know what Xero actually covers in Canada: prices in CAD, which banks connect, how sales tax returns work, what a USD account costs, and how payroll fits in.

How we evaluated

This is a research-based review. We did not use Xero hands-on. We read Xero's Canadian pricing page, its Canadian feature pages for bank feeds, sales tax, multicurrency, inventory, and payroll, and its official help centre (Xero Central). We checked tax rules against the CRA and Revenu Québec.

We looked at the things a Canadian business has to get right in its accounting software:

  • Monthly cost in CAD at regular list price, and what each plan includes
  • Which Canadian banks Xero documents direct feeds for
  • GST/HST, PST, and QST return reports, and how filing works
  • USD and other foreign currency support
  • Payroll options for Canadian employers
  • Access for staff and your accountant, apps, and French language support

Prices are regular monthly list prices, checked September 2026. Sales tax information here is general, not tax advice. An accountant can confirm how your business should set up and report sales tax.

Pricing in Canada

Xero has three Canadian plans: Starter at CAD $25/month, Standard at CAD $60/month, and Premium at CAD $80/month. Xero states that prices are in Canadian dollars and exclude applicable taxes, and that there are no per-user licence fees.

FeatureStarterStandardPremium
Price (CAD/month)$25$60$80
Invoices20 per month (plus quotes)UnlimitedUnlimited
Bills5 per monthAutomated bill entryAutomated bill entry
Bank reconciliation
Smart Document Capture
Cash flow forecast30 days60 days180 days
Custom performance dashboards
Budgets with suggestions
Multiple currencies
KPI analysis and industry benchmarking
Per-user feesNoneNoneNone
Xero Canada plans at regular list price in CAD, before taxes, September 2026.

Xero also lists two optional add-ons: employee expense and mileage claims from CAD $5/month, and project time and cost tracking from CAD $10/month (checked October 2026). Xero's pricing FAQ describes monthly billing, with an invoice at the end of each monthly billing period.

If you take card payments on your invoices through Stripe, Xero's Canadian Stripe fee page lists 2.9% + C$0.30 for domestic cards and 3.7% + C$0.30 for international cards, plus 2% when currency conversion applies. Those fees come out of each payment, on top of your subscription.

Which Xero plan fits which business?

Most businesses doing full bookkeeping will need Standard. Starter suits businesses that send 20 or fewer invoices and enter 5 or fewer bills a month.

  • Starter (CAD $25): a side business or very early-stage company with a handful of invoices and bills. Once you pass 20 invoices or 5 bills in a month, Standard is the next step.
  • Standard (CAD $60): most small businesses billing only in Canadian dollars. Invoices and bills are unlimited, and you get budgets and custom dashboards.
  • Premium (CAD $80): businesses that hold a USD account, bill US clients in USD, or pay foreign suppliers. It is the only plan with multiple currencies.

Which Canadian banks connect to Xero?

Xero Central documents direct feeds for Scotiabank and BMO. Xero's Canadian bank feeds page says it connects to over 21,000 financial institutions worldwide, but the Canadian pages we checked do not publish a full list of Canadian banks.

What Xero documents:

  • Scotiabank: Xero Central says transactions appear in Xero daily once the direct feed is connected.
  • BMO: you set up the feed within BMO, and transactions arrive daily between 5:00 am and 7:00 am ET.
  • Connections and history: the bank feeds page says there is no limit on the number of bank account connections, and you can import up to 12 months of history when you first connect (its FAQ adds that the range depends on the bank).
  • File import: if your bank has no feed, you can export statements in OFX, QIF, QBO, QFX, or CSV format and upload them, or upload a PDF statement.

If you bank with RBC, TD, CIBC, National Bank, Desjardins, or a credit union, check the bank search inside Xero's free trial before you commit. We are only listing what Xero documents on its own help pages.

How does Xero handle GST/HST, PST, and QST?

Xero produces sales tax return reports for more Canadian taxes than most competitors: GST/HST, British Columbia PST, Manitoba RST, Saskatchewan PST, and Quebec QST. You file those returns yourself.

Xero's sales tax page says default tax rates are automatically mapped to the matching lines or boxes on the return reports, and that you can drill into the transactions behind each line. You can set a default rate for accounts, contacts, or items, and change the GST/HST or provincial tax on any invoice line when needed.

Xero Central's GST/HST return article says you pick the filing period, review the return, save or finalize it, and then submit the numbers to the CRA. Xero also tracks your returns and their due dates in one place.

That last step is yours. The CRA says GST/HST registrants with a reporting period that begins in 2024 or later must file electronically (charities and selected listed financial institutions excepted), through your CRA account, NETFILE, and other approved methods. The CRA also lists filing through third-party software using GST/HST Internet File Transfer, but Xero's own help article describes copying the figures across rather than a direct upload.

If you are not registered yet, start with our GST/HST registration guide, and check GST/HST and PST rates by province or our sales tax calculator. This is general information, not tax advice; ask an accountant how sales tax should be set up for your province and type of business.

Can Xero handle a USD account?

Yes, on Premium at CAD $80/month. Starter and Standard do not include multiple currencies.

Xero's multicurrency page says it supports over 160 currencies, with hourly exchange rate and balance updates. You can assign a default foreign currency to a contact, and that contact's invoices, quotes, payments, bills, and purchase orders will show in that currency. Xero records the currency conversions for you.

For a Canadian business that bills American clients in USD or holds a USD bank account, this is the main reason to pick Premium. On price, it sits close to QuickBooks: QuickBooks Online Canada includes multicurrency on Essentials at CAD $70/month for up to three users, and on Plus at CAD $110/month for up to five. With four or more people in the books, Xero Premium is the cheaper of the two. Zoho Books offers multicurrency for less, from C$35 a month, which we cover in Xero vs Zoho Books.

Does Xero do payroll in Canada?

Xero does not run its own payroll in Canada. Its Canadian payroll page points you to partner apps instead: Wagepoint, PaymentEvolution, and Payworks.

That means two subscriptions and two support contacts: Xero for your books, and a payroll provider for pay runs, CRA source deduction remittances, T4s, and Records of Employment. The payroll app then connects to Xero so your wage expenses land in your books.

Wagepoint is the partner we have reviewed in most detail. See our Wagepoint review for its CAD pricing and what it files for you, and our Wagepoint vs QuickBooks Payroll comparison if you are weighing a separate payroll app against an all-in-one system. For the wider field, see the best payroll software in Canada.

If you would rather have payroll from the same vendor as your books, QuickBooks Online sells its own Canadian payroll add-on. That is one of the main reasons it outranks Xero in our Xero vs QuickBooks comparison.

What about inventory, apps, and your accountant?

Xero includes basic inventory on all plans, connects to a large app marketplace, and lets you invite your accountant without paying for another user.

Inventory: Xero's inventory page says you can manage up to 4,000 finished items. For larger catalogues or more complex stock, you would add an inventory app.

Apps: Xero's Canadian homepage says it integrates with more than 1,000 apps. Its Canadian app store includes categories such as payroll and HR, point of sale, ecommerce, inventory, time tracking, and tax and compliance. Before you commit, search the app store for the specific payment, POS, or ecommerce tools you use and confirm they list a Canadian connection.

Accountant and staff access: because Xero charges no per-user licence fees, you can give logins to a bookkeeper, your accountant, and staff on any plan. Xero also runs a free partner program for accountants and bookkeepers, which includes practice tools. Ask your accountant whether they already work in Xero, since that can shorten year-end work.

Is Xero available in French?

Not as far as Xero's Canadian site shows. We found no French-language version, language selector, or mention of French support on xero.com/ca in September 2026.

That matters for Quebec businesses and anyone whose staff or bookkeeper works in French. If you need French, our roundup found that QuickBooks Online has a French language setting and Sage Accounting lists a bilingual interface on every plan. Both are covered in our best accounting software in Canada review. If you still prefer Xero, ask Xero directly before signing up.

What we like and what to know

Xero's strengths are its pricing model and its sales tax reports. Keep in mind the Starter plan's invoice and bill limits, payroll through partner apps, and that no French interface is advertised.

Xero

Strengths

  • No per-user licence fees on any plan, including for your accountant
  • Return reports for GST/HST, BC PST, Manitoba RST, Saskatchewan PST, and QST
  • Multicurrency at CAD $80/month for any number of users
  • Direct feeds documented for Scotiabank and BMO, plus unlimited bank connections
  • Inventory for up to 4,000 items on every plan
  • Billed in CAD, with a 30-day free trial

Good to know

  • Starter includes 20 invoices and 5 bills a month; Standard removes the caps
  • Multicurrency is included on Premium
  • Canadian payroll runs through partner apps such as Wagepoint
  • A French interface is not advertised on the Canadian site, so confirm with Xero if you need it
  • Prepares sales tax return reports; you submit the figures to the CRA or Revenu Québec

Xero

4.0

Who Xero is for (and when another tool fits better)

Xero fits teams that want many logins at a flat price, teams of four or more that need a USD account without paying CAD $110 a month for QuickBooks Plus, and PST filers in BC, Manitoba, or Saskatchewan.

Xero is a good fit if you:

  • Need several people in the books (owner, bookkeeper, office manager, accountant). Standard at CAD $60/month covers all of them.
  • Hold a USD account or bill in USD and want multicurrency at CAD $80/month
  • Collect PST in British Columbia, Manitoba, or Saskatchewan and want a return report for it
  • Already use, or are happy to use, Wagepoint, PaymentEvolution, or Payworks for payroll
  • Work with an accountant who uses Xero

Another tool may fit better if you:

  • Are a solo owner sending more than 20 invoices a month but with no need for USD. QuickBooks EasyStart at CAD $30 costs less than Xero Standard at CAD $60.
  • Want payroll and accounting from one vendor on one bill
  • Work in French, or have a French-speaking bookkeeper
  • Mostly need invoicing rather than full bookkeeping. See the best invoicing software for Canadian contractors.

Alternatives

The main alternative is QuickBooks Online, which adds in-house payroll and a French setting but charges by user. Zoho Books, Sage, and Wave cover cheaper or bilingual needs.

Our verdict

4.0

Xero is a strong choice for Canadian businesses with several people in the books, since it charges no per-user fees, and for businesses that need a USD account, since multicurrency costs CAD $80/month on Premium. Its return reports for GST/HST, BC PST, Manitoba RST, Saskatchewan PST, and QST are broader than most rivals. Plan on Standard at CAD $60/month rather than Starter. If you want payroll from the same vendor or need to work in French, QuickBooks Online is the better fit. Whatever you choose, ask your accountant which system they use first.

Frequently asked questions

How much does Xero cost in Canada?

Xero bills in Canadian dollars. Starter is CAD $25/month, Standard is CAD $60/month, and Premium is CAD $80/month, before applicable taxes. Xero was advertising 80% off the first three months in September 2026, but the regular price is what you pay after that.

Does Xero file my GST/HST return with the CRA?

No. Xero prepares a GST/HST return report, and its help centre says you then submit the numbers to the CRA yourself, for example through your CRA business account or NETFILE.

Does Xero have payroll in Canada?

Not its own. Xero's Canadian payroll page lists three partner apps: Wagepoint, PaymentEvolution, and Payworks. Each is a separate subscription that connects to Xero.

Which Xero plan do I need for a USD bank account?

Premium, at CAD $80/month. It is the only Canadian plan that lists multiple currencies, and Xero says it supports over 160 currencies with hourly exchange rate updates.

Is Xero available in French in Canada?

We found no French-language interface or French version advertised on Xero's Canadian site in September 2026. If your team works in French, confirm with Xero before you sign up.

Does Xero charge for extra users or my accountant?

No. Xero's Canadian pricing page states there are no per-user licence fees, so you can invite staff, a bookkeeper, or your accountant on any plan without raising the subscription price.

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