Best Accounting Software for Contractors in Ontario (2026)
You run a trade business in Ontario. You invoice clients, track expenses, file HST every quarter, and pay yourself when there is money left. You do not need accounting software. You need accounting software that does not slow you down.
This is a straight comparison of the five tools most Ontario contractors use in 2026: QuickBooks Online, Xero, FreshBooks, Sage Business Cloud, and Wave. Prices are in CAD, regular monthly rate after any promo ends, current at time of writing.
What to look for as a contractor
Not every accountant's favourite tool fits a one-truck plumber, an HVAC two-person crew, or a small GC running 8 jobs at once. Before you pick, check four things:
- HST/GST handling: it has to file CRA returns or at least export a clean report. Ontario contractors hit the $30K threshold fast.
- Project profitability: tracking cost by job, not just by category. Without this, you do not know which work is making money.
- Mobile-first: most of your day is on a site, not at a desk. If the app is bad, you will not use it.
- Quote and invoice flow: a clean path from quote to deposit to final invoice. Re-typing the same numbers is where contractors lose hours.
Keep those four in mind. Now the tools.
QuickBooks Online (Canada)
The default in Canada. Your bookkeeper almost certainly uses it. Every tradesperson's accountant will accept a QuickBooks export without complaint.
Regular CAD pricing per month:
| Plan | Price | Best for |
|---|---|---|
| EasyStart | from $24 | Solo, no employees, basic invoicing |
| Essentials | $54 | Up to 3 users, bill management |
| Plus | $80 | Project profitability, inventory, 5 users |
| Advanced | $160 | Larger crews, custom reports |
For most contractors the answer is Plus. EasyStart and Essentials do not give you per-job profitability, which is the whole point of using accounting software in this trade.
Good at: HST returns built into the workflow, bank feeds from every Canadian bank, every accountant in Canada knows it.
Bad at: the interface is loaded with features you will never use, the mobile app is fine but not great, and the price has climbed every year. New users get 50% to 60% off for the first months, then the full price kicks in. See QuickBooks Canada pricing for the current promo.
Xero (Canada)
The alternative most accountants will recommend if you ask. Clean interface, good mobile app, popular with newer bookkeepers.
Regular CAD pricing per month (after April 1, 2026 increase):
| Plan | Price | Best for |
|---|---|---|
| Starter | $25 | 20 invoices and 5 bills per month max |
| Standard | $55 | Unlimited invoices, bills, GST/HST |
| Premium | $75 | Multi-currency, project tracking |
Good at: clean dashboard, fast bank reconciliation, project tracking on Premium, unlimited users on every plan.
Bad at: the Starter tier caps you at 20 invoices a month, which most active contractors blow past in a week. If you go Xero, plan to be on Standard from day one. Project tracking is only on Premium, which adds up. The Canadian payroll integration is weaker than QuickBooks.
FreshBooks
Built for service businesses. Toronto-born. The strongest pure invoicing flow of the bunch.
Regular CAD pricing per month:
| Plan | Price | Best for |
|---|---|---|
| Lite | $19 | Up to 5 clients (too small for most) |
| Plus | $33 | Up to 50 clients, recurring invoices, estimates |
| Premium | $60 | Unlimited clients, project profitability |
| Select | Custom | High volume, dedicated support |
Good at: invoicing is faster than any of the others. The estimate-to-invoice flow is clean. Client self-service portal works well for homeowners who want to see their invoices. Tax-time reports are CRA friendly.
Bad at: not a true double-entry accounting system at the lower tiers, which some accountants do not love. Inventory tracking is weak. If you need to track materials in detail, this is not the tool.
Sage Business Cloud Accounting
Oldest brand in the room. Still common with bookkeepers who started before QuickBooks took over.
Regular CAD pricing per month:
| Plan | Price | Best for |
|---|---|---|
| Start | $21 | Solo, basic invoicing and bank feeds |
| Standard | $47 | Multi-user, GST/HST returns |
| Plus | $68 | Inventory, multi-currency |
Good at: reliable, no surprises, CRA-ready HST reports, decent price at the entry tier.
Bad at: the interface feels dated next to Xero and FreshBooks. The mobile app is the weakest of the five. Fewer third-party integrations.
Wave
The one that is actually free. Built in Toronto, owned by H&R Block since 2019. Still free for core accounting and invoicing in 2026, with paid add-ons for payments and payroll.
Pricing:
- Accounting and invoicing: free
- Wave Pro (newer subscription tier with extra features, launched 2024): paid, around $20-$25/mo CAD
- Payments: per-transaction fees (2.9% + $0.60 per CC charge in Canada)
- Payroll: $25/mo base + $6 per employee in Ontario
Good at: zero cost for a contractor who is just starting out, just invoicing, and not yet over the $30K HST threshold. The accounting features are real, not crippled.
Bad at: no project profitability, no real estimates that convert to invoices smoothly, limited reporting once you grow. Plenty of contractors outgrow Wave within two years.
Quick decision guide
| Your situation | Best pick |
|---|---|
| Solo, under $30K revenue, learning the trade | Wave (free) |
| Solo, over the HST threshold, want one app | FreshBooks Plus or QuickBooks EasyStart |
| Active contractor, 1-3 active jobs at a time | QuickBooks Plus or Xero Standard |
| Small GC, 5+ open jobs, materials inventory | QuickBooks Plus |
| Crew of 5+, projects over $50K each | QuickBooks Advanced or Xero Premium |
What all five still miss
Every tool above is built around bookkeeping. They are great at telling you what already happened. They are weak at the work that actually fills your days.
- They do not write quotes from voice notes on site. You still type.
- They do not file HST automatically with CRA. They produce a report. You file.
- They do not answer missed calls from homeowners.
- They do not flag a quote that is priced too low for the market.
- They do not know your WSIB renewal date.
Accounting software keeps the books clean. The rest of the day, the books are not what is slowing you down.
Related reading: Independent Contractor Taxes Canada: Complete 2026 Guide covers when to register for HST and what to deduct.
See where your business actually stands: grizzli.app/score. Free 5-minute assessment, no credit card.
Prices verified against official vendor pricing pages at time of writing. Promo discounts not included. All amounts CAD.