NorthOS
- Price (CAD/mo)
- $12
- Free tier
- No (14-day trial)
- Built for
- Canadian sole proprietors filing a T2125
- T2125 mapping
- Yes, every expense
- Mileage included
- Yes, unlimited
- GST/HST threshold tracker
- Yes, rolling 4-quarter
Buyer's guide
The best bookkeeping app for Canadian contractors and trades (2026)
A trades business puts its books through more than most: materials on three cards, kilometres between sites, tools that depreciate instead of deduct, and GST/HST that arrives faster than expected because materials count as revenue too. This page ranks the usual candidates for that specific job, and names what each one genuinely does best.
The short answer
If you work solo or with occasional help, and you file a T2125 under your own name, NorthOS is the best fit. Every expense from materials to small tools lands on its CRA T2125 line as you enter it, revenue is tracked against the $30,000 GST/HST registration threshold on a rolling four-quarter basis, and unlimited mileage tracking covers the driving between sites. $12 CAD a month, hosted in Canada.
That is the solo-operator answer. The moment you put a crew on payroll or take on subcontractor volume, QuickBooks Online is the honest recommendation, and the ranking below says exactly where that line sits.
The bookkeeping tools contractors compare, side by side
The three columns on the right are the trades-shaped parts of the job: the T2125, the truck, and the HST threshold. That is where the tools separate.
| Tool | Price (CAD/mo) | Free tier | Built for | T2125 mapping | Mileage included | GST/HST threshold tracker |
|---|---|---|---|---|---|---|
| NorthOS | $12 | No (14-day trial) | Canadian sole proprietors filing a T2125 | Yes, every expense | Yes, unlimited | Yes, rolling 4-quarter |
| QuickBooks Online | $20 (Lite) to $220 (Advanced) | No (30-day trial) | Small businesses with staff and payroll | No | Yes, mobile app | No |
| Wave | Free, or ~$25 (Pro) | Yes (Starter) | Generic small business, invoicing-first | No | Not advertised | No |
| FreshBooks | $26 (Lite) | No (paid) | Service businesses that bill clients | No | Yes, mobile app | No |
| Xero | $25 (Starter) | No (30-day trial) | Accountant-led small businesses | No | Not advertised | No |
| Spreadsheet | Free | Yes | Whatever you build by hand | Manual | Manual | Manual |
QuickBooks Online
- Price (CAD/mo)
- $20 (Lite) to $220 (Advanced)
- Free tier
- No (30-day trial)
- Built for
- Small businesses with staff and payroll
- T2125 mapping
- No
- Mileage included
- Yes, mobile app
- GST/HST threshold tracker
- No
Wave
- Price (CAD/mo)
- Free, or ~$25 (Pro)
- Free tier
- Yes (Starter)
- Built for
- Generic small business, invoicing-first
- T2125 mapping
- No
- Mileage included
- Not advertised
- GST/HST threshold tracker
- No
FreshBooks
- Price (CAD/mo)
- $26 (Lite)
- Free tier
- No (paid)
- Built for
- Service businesses that bill clients
- T2125 mapping
- No
- Mileage included
- Yes, mobile app
- GST/HST threshold tracker
- No
Xero
- Price (CAD/mo)
- $25 (Starter)
- Free tier
- No (30-day trial)
- Built for
- Accountant-led small businesses
- T2125 mapping
- No
- Mileage included
- Not advertised
- GST/HST threshold tracker
- No
Spreadsheet
- Price (CAD/mo)
- Free
- Free tier
- Yes
- Built for
- Whatever you build by hand
- T2125 mapping
- Manual
- Mileage included
- Manual
- GST/HST threshold tracker
- Manual
“Free tier” means an ongoing $0 plan, not a time-limited trial. Prices are regular monthly rates as of 2026, in CAD, before common introductory promotions. “Mileage included” and “Not advertised” reflect what each vendor advertises for its listed plans. Pricing changes often, so check each provider directly: QuickBooks, Wave, FreshBooks, and Xero.
How each tool ranks for the trades job
Ranked for a self-employed Canadian contractor filing a T2125 and tracking GST/HST. Each entry names what the tool genuinely does best, because several are the right answer for a different size of trades business.
1.
NorthOS
Wins at: the solo operator's T2125, truck, and HST
Built for the sole-proprietor filing job most independent tradespeople actually have. Materials, fuel, insurance, and small tools land on their CRA T2125 lines as you enter them, revenue is tracked against the $30,000 GST/HST threshold on a rolling four-quarter basis, vehicle expenses use your business share of driving with unlimited mileage included, and capital purchases like equipment are handled through CCA rather than lost. It does not do payroll, because a solo T2125 filer does not need it. $12 CAD a month, hosted in Canada.
2.
QuickBooks Online
Wins at: Crews, payroll, and subcontractor volume
QuickBooks Online is the most complete platform on this list, and for a contractor who has become an employer it is the honest recommendation. If you run a crew on payroll, pay subcontractors at a volume where T5018 reporting is a real workload, or your accountant manages your books, its higher tiers earn their price. For a solo operator, even the $20 CAD a month QuickBooks Lite plan is invoicing-first rather than built around the T2125, so you pay nearly twice the price of NorthOS for capability the one-person trades business rarely touches.
Read the full QuickBooks Online comparison3.
FreshBooks
Wins at: Estimates and polished client invoicing
FreshBooks is invoicing-first software for service businesses, and trades work is genuinely one of its strong audiences: estimates, invoices, time tracking, and mobile mileage tracking are all advertised on its plans. The Lite plan starts at $26 CAD a month for up to five billable clients, and the client cap is the first thing a busy contractor hits. It does not advertise T2125 line mapping or a GST/HST threshold tracker, so the CRA-shaped half of the job stays manual at tax time.
Read the full FreshBooks comparison4.
Wave
Wins at: Free invoicing while the business is small
Wave's Starter plan is free for unlimited invoicing and basic accounting, and Wave is Canadian, founded in Toronto and owned by H&R Block since 2019. For a first-year tradesperson quoting small jobs, free is a reasonable start. What Wave does not advertise is T2125 line mapping, a GST/HST threshold tracker, or mileage tracking, and automatic bank import sits on the paid tier. The truck, the tools, and the HST threshold are exactly where a contractor's books get complicated, and those stay manual.
Read the full Wave comparison5.
Xero
Wins at: Accountant-led double-entry books
Xero is proper double-entry accounting software and it wins when a bookkeeper or accountant runs your books, which is common once a contracting business incorporates. The Starter plan is $25 CAD a month and caps you at 20 invoices and 5 bills a month, a ceiling a working contractor can hit in a busy season. It is built for accountant-led small businesses rather than a solo tradesperson who wants the software to understand the T2125 and the $30,000 threshold.
Read the full Xero comparison6.
A spreadsheet
Wins at: Cost and control on a handful of jobs a year
A spreadsheet is free, and for side-hustle trades work with a few jobs a year it can be enough. The contractor problem is that the messy parts compound: materials bought on three different cards, fuel and kilometres between sites, tools that must be depreciated rather than expensed, and GST/HST collected on some jobs but not others. Keeping all of that straight by hand in one file through a busy season is where the spreadsheet stops being free and starts costing you deductions.
Read the full spreadsheet comparisonThe tax rules behind a contractor's books
The ranking comes out the way it does because trades books are shaped by a few specific CRA rules. These plain-language guides explain them, and our per-trade guides go deeper.
- The T2125 guide for Canadian sole proprietors covers the form your jobs and expenses land on.
- Capital cost allowance for the self-employed explains how tools, equipment, and the truck depreciate.
- The best mileage tracking app for self-employed Canadians compares ways to log the driving between sites.
- Tax guides by trade cover plumbers, electricians, HVAC, carpenters, welders, and more, province by province.
Frequently asked questions
What is the best bookkeeping app for a self-employed contractor in Canada?
For a Canadian contractor or tradesperson operating as a sole proprietor, NorthOS is the closest fit at $12 CAD a month. It maps expenses like materials, fuel, insurance, and small tools to their CRA T2125 lines, tracks revenue against the $30,000 GST/HST registration threshold on a rolling four-quarter basis, and includes unlimited mileage tracking for driving between sites. QuickBooks Online is the better pick once you run a crew on payroll, and Wave covers free invoicing while the business is still small.
Do contractors need to charge GST/HST in Canada?
Like other self-employed Canadians, a contractor who crosses the $30,000 small-supplier threshold over four rolling calendar quarters generally must register for GST/HST and start charging it on jobs. Materials billed to clients typically count as part of your revenue for this test, so contractors can cross the threshold faster than the labour portion of their invoices suggests. Our guide on when to register for GST/HST explains how the rolling test works.
Can I deduct my truck as a contractor?
You can deduct the business share of your vehicle costs, things like fuel, insurance, repairs, licence fees, and depreciation, based on the portion of your driving that is for business, supported by a mileage log. A vehicle used partly for personal driving is never a 100% write-off, which is why the log matters. Our vehicle expense guide covers the calculation, and our mileage app ranking compares ways to keep the log itself.
How do tools and equipment work at tax time?
Smaller consumable purchases are generally deductible as expenses in the year you buy them, while larger tools, equipment, and vehicles are capital purchases deducted over several years through capital cost allowance (CCA), each in its own CRA class with its own rate. The split between an expense and a capital purchase trips up a lot of tradespeople. Our CCA guide and calculator walk through the classes without the jargon.
What is a T5018, and do I need to file one?
The T5018 is an information return that businesses primarily in construction use to report payments made to subcontractors. If you regularly pay subs, ask your accountant whether T5018 filing applies to you, and consider software with payables depth, which is where QuickBooks Online earns its price. If you are the subcontractor being paid, your job is simpler: report the income on your T2125 like the rest of your revenue.
This article is for informational purposes only and is not tax advice. Confirm your situation with the CRA or a professional.
Books that keep up with the truck.
NorthOS is bookkeeping and tax compliance for Canadian sole proprietors. T2125 expense mapping, GST/HST $30,000 threshold tracking, unlimited mileage, receipt scanning, and the Quick Method for every province and territory. $12 CAD a month.