Xero vs QuickBooks Canada: An Honest 2026 Comparison from a CPA Who Uses Both

If you're a Canadian SME trying to decide between Xero and QuickBooks, you've probably Googled "xero vs quickbooks canada" and found yourself drowning in generic software reviews. Let me save you some time: both are excellent cloud accounting platforms. The real question is which one fits your specific business needs in Canada?

As a CPA who uses both systems daily for our clients at LedgerLogic, I'll give you an honest breakdown—including where QuickBooks beats Xero (spoiler: payroll and reporting) and where Xero wins (interface, integrations, and multi-currency).

Quick Verdict at a Glance

Feature	Xero	QuickBooks Online
Starting Price	$25/month (CAD)	$30/month (CAD)
Users Included	Unlimited	1-25 depending on plan
Built-in Payroll	No (requires add-on)	Yes (in Plus and above)
GST/HST Compliance	Excellent	Excellent
Multi-Currency	Exceptional	Good
Phone Support	Email/chat only	Yes (on higher plans)
Free Receipt Capture	Hubdoc included	Limited mobile
Mobile App	Excellent	Very good
Best For	E-commerce, consultants, international	Service businesses, inventory, payroll-heavy

Pricing Comparison: The Real Cost

Xero Pricing (February 2026)

Plan	Regular Price	Promo Price	Features
Starter	$25/month	$2.50/month for 6 months	20 invoices + 5 bills | Unlimited users | Hubdoc included
Standard	$55/month	$5.50/month for 6 months	Unlimited invoices & bills | Unlimited users | Multi-currency, projects, expense claims
Premium	$75/month	$7.50/month for 6 months	Everything in Standard | Unlimited users | Multi-currency batch payments

QuickBooks Online Pricing (February 2026)

Plan	Regular Price	Promo Price	Features
EasyStart	$30/month	$15/month for 3 months	Sole proprietorships | 1 user | No payroll
Essentials	$60/month	$30/month for 3 months	3 users | Multi-currency | Time tracking
Plus	$90/month	$45/month for 3 months	5 users | Inventory | Project profitability
Advanced	$235/month	$117.50/month for 3 months	25 users | Custom reporting | Batch invoices

Winner: It's a tie on price, but Xero's "Unlimited users" on the Standard plan is a huge bonus if you have a team.

GST/HST Compliance: Both Handle It Well

Both platforms are fully Canadian compliant.

• Xero: excellent sales tax return reports that map directly to your GST34 lines.
• QuickBooks: also excellent, with a direct e-file option for GST/HST in some provinces.

Verdict: Tie.

Ease of Use: Xero Wins on Design

Xero Interface:

• Cleaner dashboard: You see what matters (bank balance, invoices due, bills to pay)
• Easier navigation: Everything is where you expect it
• Learning curve: 2–3 hours to feel comfortable

QuickBooks Interface:

• More features visible: Can feel cluttered initially
• More customization: Power users love this
• Learning curve: 4–6 hours to master

Verdict: If you want "plug and play," choose Xero. If you want granular control and don't mind a steeper learning curve, QuickBooks may suit you better.

Payroll: QuickBooks Wins (Hands Down)

This is where QuickBooks pulls ahead significantly.

QuickBooks Payroll:

• Built into Plus and Advanced plans
• Automatic CRA remittances (CPP, EI, income tax)
• T4 generation at year-end
• Direct deposit included
• Provincial payroll tax compliance (Quebec, Ontario, etc.)

Xero Payroll:

• Not included in base plans
• Requires third-party integration (Wagepoint or Rise People)
• Additional cost: ~$5–$15/month per employee
• More setup friction

Verdict: If payroll is a priority, QuickBooks wins. No contest.

Integrations: Xero Wins on App Ecosystem

Xero has a more robust third-party app marketplace, especially for e-commerce and modern SaaS tools.

Xero Integrations:

• 1,000+ apps in the Xero App Marketplace
• Seamless connections with Shopify, WooCommerce, Amazon, Stripe
• Popular add-ons: Dext (receipt capture), Fathom (reporting), A2X (e-commerce accounting)

QuickBooks Integrations:

• 650+ apps
• Strong connections with traditional tools (Square, PayPal, Bill.com)
• Fewer modern e-commerce integrations

Verdict: Xero wins if you're running an e-commerce business or using cutting-edge SaaS tools.

Reporting: QuickBooks Pulls Ahead

QuickBooks offers more powerful out-of-the-box reporting, especially in Advanced plans.

QuickBooks Reporting:

• Customizable reports (filter by class, location, customer)
• Profit & Loss by class/department
• Strong inventory reports
• Better job costing

Xero Reporting:

• Good standard reports (P&L, balance sheet, aged receivables)
• Reporting is simpler but less customizable
• Requires third-party apps (Fathom, Spotlight) for advanced analytics

Verdict: QuickBooks wins if you need detailed management reports or run a multi-location business.

Who Should Choose Xero?

Choose Xero if you:

• Run an e-commerce business (Shopify, Amazon, WooCommerce)
• Deal with multiple currencies regularly
• Want a cleaner, simpler interface
• Don't need built-in payroll (or have < 5 employees)
• Value app integrations with modern tools
• Are a consultant, freelancer, or agency

→ Get 90% off Xero for 6 months

As a Xero Certified Partner, LedgerLogic earns a commission when you sign up through our link—at no extra cost to you. We recommend Xero because we use it ourselves and know it's a great fit for Canadian SMEs.

Who Should Choose QuickBooks?

Choose QuickBooks if you:

• Need built-in payroll with automatic CRA remittances
• Run a service business with employees (landscaping, construction, professional services)
• Require advanced inventory management
• Want phone support (on Plus and Advanced plans)
• Need detailed multi-location or class tracking
• Prefer deeper reporting without third-party tools

QuickBooks is the safer bet for traditional businesses with complex reporting needs.

Our Recommendation

Here's the truth: you can't go wrong with either platform.

• If you're a one-person consultant or e-commerce seller, Xero is likely the better fit.
• If you're a growing service business with employees, QuickBooks makes more sense.

At LedgerLogic, we use both. About 70% of our clients are on Xero (mostly tech, e-commerce, consultants), and 30% are on QuickBooks (service businesses, inventory-heavy, payroll-focused).

Frequently Asked Questions

Is Xero cheaper than QuickBooks in Canada?

Xero's Starter plan ($25/month) and QuickBooks EasyStart ($30/month) are close in price. However, Xero currently offers 90% off for 6 months, making it cheaper initially. Long-term, pricing depends on the features you need.

Can I switch from QuickBooks to Xero (or vice versa)?

Yes, but it requires data migration. Most accountants (including LedgerLogic) offer migration services. Expect 2–5 hours of setup time depending on your transaction history.

Does Xero do payroll in Canada?

Xero doesn't have built-in Canadian payroll. You'll need to integrate with Wagepoint or Rise People. Cost: Varies by provider.

Which is better for e-commerce businesses in Canada?

Xero. It integrates seamlessly with Shopify, WooCommerce, Amazon, and A2X for automated reconciliation. QuickBooks works too, but the integration ecosystem is weaker.

Do Canadian accountants prefer Xero or QuickBooks?

It's split. Traditional accountants lean toward QuickBooks due to familiarity. Modern, cloud-forward firms (like LedgerLogic) prefer Xero for its interface and integrations.

Can Xero handle GST/HST for multiple provinces?

Yes. Xero handles multi-provincial tax codes very well, making it ideal for businesses operating across Canada.

Is QuickBooks better for inventory management?

Yes. QuickBooks has more robust inventory tracking, especially in Plus and Advanced plans.

Which platform has better customer support in Canada?

QuickBooks offers phone support on Plus and Advanced plans. Xero only offers email and chat support. If phone support matters to you, QuickBooks wins.

Final Thoughts

Both Xero and QuickBooks are excellent accounting platforms for Canadian SMEs. Your choice should be based on your specific business needs, not which software is "better" in the abstract.

Quick decision guide:

• E-commerce, freelance, consulting? → Xero
• Service business with employees? → QuickBooks