Monthly price (CAD, as of 2026)
- Xero
- Starter $25, Standard $60, Premium $80
- NorthOS
- $12 flat
Alternatives
Xero is built for accountant-led businesses. NorthOS is built for the solo Canadian filer.
Xero is capable double-entry accounting software, and its own marketing points the Starter plan at sole traders and the self-employed. But there is no permanent free tier, the entry Starter plan is capped at 20 invoices and 5 bills a month, and none of the tiers track the GST/HST $30,000 threshold, map expenses to the T2125, or run the Quick Method. NorthOS does all three, uncapped, for $12 CAD a month.
What Xero is genuinely good at
Xero is a serious accounting product. It is full double-entry software that bookkeepers and accountants know and trust, with a large app marketplace, real bank reconciliation, and reporting that scales well beyond a one-person business.
It also grows in the ways a maturing business needs. Xero handles multi-currency, inventory tracking, project tracking, and payroll through add-ons. If you already work with an accountant who lives in Xero, staying in the same system has real value, because the two of you are looking at the same ledger.
On price, Xero runs a 30-day free trial, and as of 2026 its Canadian plans are Starter at $25 CAD a month, Standard at $60, and Premium at $80. Pricing changes, so check Xero's pricing page for current numbers.
Where Xero falls short for a Canadian sole proprietor
Xero is strong software. It is not built around Canadian sole-proprietor filing, and for a solo business the entry plan is both priced and capped above what you need. Four things stand out.
There is no permanent free tier. Xero gives you a 30-day trial, and then every plan is paid. As of 2026, the lowest is Starter at $25 CAD a month. That is a reasonable price for capable software, but it is not the free-forever floor that some sole proprietors expect from an entry tool.
The entry Starter plan is capped. Starter limits you to 20 invoices and 5 bills a month. An active sole proprietor reaches those limits, and the fix inside Xero is to move up to Standard at $60 or Premium at $80, not a small step up from $12. You end up paying for a bigger plan to get past a cap, not to get features you asked for.
The $30,000 GST/HST threshold is not tracked. Xero records the sales tax you configure, but no tier warns you as your rolling four-quarter revenue approaches the mandatory-registration threshold. Most sole proprietors find out they crossed it after the fact. NorthOS tracks that running total and flags it before you cross. (More on that in our guide to when to register for GST/HST.)
The T2125 is not the data model, and there is no Quick Method calculator. Xero uses its own chart of accounts, so year end is a reconciliation back to CRA lines, usually done by an accountant. And if you elect the Quick Method, the math happens outside Xero. NorthOS maps every expense to its T2125 line as you enter it, and has a built-in Quick Method calculator for all 13 provinces and territories.
It is worth being direct about the marketing. Xero points Starter at sole traders and the self-employed, so the plan is aimed at solo businesses. But it starts at $25 CAD a month and caps you at 20 invoices, which nudges an actually-active solo business toward the $60 tier. That gap, aimed at solo filers but priced and capped above what a solo filer needs, is exactly what NorthOS is built to close.
Xero vs. NorthOS
| Feature | Xero | NorthOS |
|---|---|---|
| Monthly price (CAD, as of 2026) | Starter $25, Standard $60, Premium $80 | $12 flat |
| Permanent free tier | No (30-day trial only) | No (flat $12/mo) |
| Invoices per month | Starter capped at 20 | Unlimited |
| Bills per month | Starter capped at 5 | Unlimited |
| Built for | Bookkeeper- and accountant-led small businesses | Canadian sole proprietors and side hustlers |
| GST/HST $30k threshold tracker | No | Automatic, rolling four-quarter window |
| T2125 line-by-line expense mapping | No | Built into every category |
| GST/HST Quick Method calculator | No | All 13 provinces and territories |
| Provincial sales tax (PST) for BC, SK, MB | Manual setup | Recognized by province |
| Full double-entry accounting | Yes | Simplified for sole proprietors |
| Multi-currency and inventory | Yes (higher tiers) | Not built for this |
| Receipt scanning | Yes (included) | Included, via North AI |
| Designed for Canadian CRA filing | No (global platform) | Yes (built in Ontario) |
Permanent free tier
- Xero
- No (30-day trial only)
- NorthOS
- No (flat $12/mo)
Invoices per month
- Xero
- Starter capped at 20
- NorthOS
- Unlimited
Bills per month
- Xero
- Starter capped at 5
- NorthOS
- Unlimited
Built for
- Xero
- Bookkeeper- and accountant-led small businesses
- NorthOS
- Canadian sole proprietors and side hustlers
GST/HST $30k threshold tracker
- Xero
- No
- NorthOS
- Automatic, rolling four-quarter window
T2125 line-by-line expense mapping
- Xero
- No
- NorthOS
- Built into every category
GST/HST Quick Method calculator
- Xero
- No
- NorthOS
- All 13 provinces and territories
Provincial sales tax (PST) for BC, SK, MB
- Xero
- Manual setup
- NorthOS
- Recognized by province
Full double-entry accounting
- Xero
- Yes
- NorthOS
- Simplified for sole proprietors
Multi-currency and inventory
- Xero
- Yes (higher tiers)
- NorthOS
- Not built for this
Receipt scanning
- Xero
- Yes (included)
- NorthOS
- Included, via North AI
Designed for Canadian CRA filing
- Xero
- No (global platform)
- NorthOS
- Yes (built in Ontario)
Weighing more than these two? See how the field compares in our roundup of the best bookkeeping software in Canada, or read our QuickBooks Online and Wave comparisons.
When Xero is still the right tool for you
Xero is a real product with real strengths. There are situations where it is the better choice and NorthOS is not.
If you work with an accountant or bookkeeper who already runs Xero, staying in their system saves everyone time, and the deeper ledger is a feature, not a cost.
If you carry inventory, sell in more than one currency, or run payroll for employees, Xero is designed for that work and NorthOS is not.
If your business is growing past a sole proprietorship toward incorporation, staff, and a high volume of vendor bills, Xero has the room to grow into. NorthOS is the better tool while you are a solo filer whose hardest job is being ready for the CRA in April.
Why Canadian sole proprietors pick NorthOS over Xero
The GST threshold is a number you can see.
NorthOS shows your rolling four-quarter revenue against the $30,000 registration threshold on the dashboard. You register before you cross it, not after.
The T2125 is the data model.
Every expense lands on a specific CRA line as you enter it. Year end is an export, not a reconciliation back from a generic chart of accounts.
The Quick Method is one click.
Pick your province, enter your revenue, and see your remittance, with all 13 provinces and territories built in. No separate spreadsheet.
One flat price, no caps.
NorthOS is $12 CAD a month with unlimited invoices and bills. Receipt scanning, a connected bank feed, and North AI, the write-capable assistant, are included at that price.
“What about my Xero data?”
Xero lets you export your transactions, contacts, invoices, and reports to CSV and PDF. NorthOS can take a transactions CSV as the starting point for your books, with categories mapped to T2125 lines during import.
The honest part: there is no one-click migration. You will be rebuilding the chart of accounts in T2125 shape, which is the work you would have done at year end anyway. The upside is that after the rebuild, your bookkeeping is already structured the way the CRA wants to see it, not the way a general-purpose ledger organizes it.
If you want help moving your historical Xero data into NorthOS, reach out at hello@northos.ca.
Frequently asked questions
Is Xero good for a sole proprietor in Canada?
Xero is capable accounting software, and its marketing points the Starter plan at sole traders and the self-employed. The catch for a Canadian sole proprietor is fit and price. Starter is $25 CAD a month as of 2026 and caps you at 20 invoices and 5 bills a month, which an active solo business reaches, and the next tier up (Standard) is $60. Xero also does not include a GST/HST $30,000 threshold tracker, T2125 line mapping, or a Quick Method calculator, which are the parts of solo filing that actually take time. If you have an accountant who works in Xero, or you carry inventory or employees, Xero is a reasonable choice. If you are a solo filer who mainly needs to be ready for the CRA, NorthOS is built for that at $12 CAD a month.
Does Xero have a free plan?
No. Xero has no permanent free tier. It offers a 30-day free trial, and after that every plan is paid. As of 2026 the lowest tier in Canada is Starter at $25 CAD a month, then Standard at $60 and Premium at $80. If you want a genuinely free option, Wave has a free Starter plan, though it is not built around Canadian sole-proprietor filing either. NorthOS is not free, but it is $12 CAD a month with no invoice or bill caps.
How much does Xero cost in Canada in 2026?
As of 2026, Xero Canada has three plans: Starter at $25 CAD a month, Standard at $60, and Premium at $80. Standard and Premium rose on April 1, 2026. Xero runs a 30-day free trial and, at times, a promotional discount for the first few months. Pricing changes, so check the Xero pricing page (xero.com/ca/pricing-plans) for current numbers before you decide.
What are the limits on Xero Starter?
Xero Starter, the entry plan at $25 CAD a month as of 2026, is capped at 20 invoices and 5 bills per month. That is fine for a very slow month, but an active sole proprietor who invoices regularly reaches those limits, and the only fix inside Xero is to move up to Standard at $60. NorthOS does not cap invoices or bills at any tier.
Does Xero track the GST/HST $30,000 registration threshold?
Not as a native feature. Xero records the sales tax you configure on invoices, but no tier warns you as your rolling four-quarter revenue approaches the $30,000 mandatory-registration threshold. NorthOS tracks that running total and flags it before you cross, so you register on time instead of back-paying GST you never charged.
Does Xero map expenses to CRA T2125 lines?
No. Xero categorizes transactions using its own chart of accounts. Those categories can be reconciled to T2125 lines at year end, usually by an accountant, but the mapping is not built into the product. NorthOS categorizes every expense directly to its T2125 line as you enter it, so the year-end export is already structured the way the CRA expects.
Does Xero have a GST/HST Quick Method calculator?
No. Xero assumes you are tracking input tax credits on every purchase and remitting the difference (the Regular Method). If you elect the CRA Quick Method instead, the calculation happens outside Xero. NorthOS has a built-in Quick Method calculator covering all 13 provinces and territories.
Is NorthOS Canadian?
Yes. NorthOS is built by Apex North Enterprises in Ontario, hosted in Canada, and designed specifically for Canadian sole proprietors and side hustlers. It handles T2125 compliance, the GST/HST registration threshold, the Quick Method, and provincial sales tax (PST) for BC, SK, and MB out of the box.
Bookkeeping built around how Canadians actually file.
NorthOS is bookkeeping and tax compliance for Canadian sole proprietors and side hustlers. T2125 expense mapping, GST/HST threshold tracking, Quick Method remittance, and provincial sales tax for BC, SK, and MB. Uncapped, at $12 CAD a month.