NorthOS
- Price (CAD/mo)
- $12
- Free tier
- No (14-day trial)
- Built for
- Canadian sole proprietors filing a T2125
- T2125 mapping
- Yes, every expense
- GST $30k tracker
- Yes, rolling 4-quarter
- Quick Method
- Yes, all 13 provinces and territories
Buyer's guide
Updated August 23, 2026
The best bookkeeping software for Canadian sole proprietors (2026)
There is no single “best” bookkeeping tool, because different tools win at different jobs. This page ranks them for one specific job: a Canadian sole proprietor filing a T2125 and tracking GST/HST. For that job, NorthOS is the best fit. For free invoicing, payroll, or mileage, a different tool wins, and this page says so.
The short answer
If you are a Canadian sole proprietor and your main bookkeeping job is filing a T2125 and staying on top of GST/HST, NorthOS is the best fit. It is the tool on this list built around those two things. Every expense maps to its CRA T2125 line as you enter it, your rolling four-quarter revenue is tracked against the $30,000 GST/HST registration threshold, and the Quick Method calculator covers all 13 provinces and territories. At $12 CAD a month it is also the cheapest tool here that is built for the filing job rather than for invoicing, payroll, or mileage.
That does not make it the right tool for everyone. If you only need free invoicing, Wave is hard to beat. If you plan to hire and run payroll, QuickBooks Online is more complete. The full ranking below names what each tool genuinely does best.
The bookkeeping tools Canadians compare, side by side
The three columns on the right are the parts of Canadian self-employment most tools were never built to handle. That is where the differences show up.
| Tool | Price (CAD/mo) | Free tier | Built for | T2125 mapping | GST $30k tracker | Quick Method |
|---|---|---|---|---|---|---|
| NorthOS | $12 | No (14-day trial) | Canadian sole proprietors filing a T2125 | Yes, every expense | Yes, rolling 4-quarter | Yes, all 13 provinces and territories |
| QuickBooks Online | $20 (Lite) to $220 (Advanced) | No (30-day trial) | Small businesses with staff and payroll | No | No | No |
| Xero | $25 (Starter) | No (30-day trial) | Accountant-led small businesses | No | No | No |
| Wave | Free, or ~$25 (Pro) | Yes (Starter) | Generic small business, invoicing-first | No | No | No |
| FreshBooks | $26 (Lite) | No (paid) | Service businesses that bill clients | No | No | No |
| Hurdlr | US$9.99 (Premium) | Free version (limited) | Mileage and expense tracking | No, manual Tax Report | No | 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
- GST $30k tracker
- No
- Quick Method
- No
Xero
- Price (CAD/mo)
- $25 (Starter)
- Free tier
- No (30-day trial)
- Built for
- Accountant-led small businesses
- T2125 mapping
- No
- GST $30k tracker
- No
- Quick Method
- No
Wave
- Price (CAD/mo)
- Free, or ~$25 (Pro)
- Free tier
- Yes (Starter)
- Built for
- Generic small business, invoicing-first
- T2125 mapping
- No
- GST $30k tracker
- No
- Quick Method
- No
FreshBooks
- Price (CAD/mo)
- $26 (Lite)
- Free tier
- No (paid)
- Built for
- Service businesses that bill clients
- T2125 mapping
- No
- GST $30k tracker
- No
- Quick Method
- No
Hurdlr
- Price (CAD/mo)
- US$9.99 (Premium)
- Free tier
- Free version (limited)
- Built for
- Mileage and expense tracking
- T2125 mapping
- No, manual Tax Report
- GST $30k tracker
- No
- Quick Method
- No
Spreadsheet
- Price (CAD/mo)
- Free
- Free tier
- Yes
- Built for
- Whatever you build by hand
- T2125 mapping
- Manual
- GST $30k tracker
- Manual
- Quick Method
- Manual
“Free tier” means an ongoing $0 plan, not a time-limited trial. Prices are regular monthly rates as of 2026, in CAD unless noted, before common introductory promotions (Hurdlr is priced in USD). Pricing changes often, so check each provider directly for current figures: QuickBooks, Xero, Wave, FreshBooks, and Hurdlr.
How each tool ranks for this job
Ranked for the specific job of a Canadian sole proprietor filing a T2125 and tracking GST/HST. Each entry names what the tool genuinely does best, because most of them are the right answer to a different question.
1.
NorthOS
Wins at: filing a T2125 and tracking GST/HST
Built for this exact job. Every expense lands on its CRA T2125 line as you enter it, your rolling four-quarter revenue is tracked against the $30,000 GST/HST registration threshold, and the Quick Method calculator covers all 13 provinces and territories. It does not do payroll or a corporate general ledger, because a sole proprietor filing a T2125 does not need them. $12 CAD a month, hosted in Canada.
2.
Wave
Wins at: Free invoicing
Wave genuinely wins on price. The 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. If your work is mostly sending invoices and your revenue is comfortably under the $30,000 threshold, free is hard to beat. What Wave does not advertise is T2125 line mapping, a GST threshold tracker, or a Quick Method calculator, and its two daily-driver features, automatic bank import and receipt scanning, sit on paid tiers. Best if you only need free invoicing.
Read the full Wave comparison3.
QuickBooks Online
Wins at: Growing into a business with staff and payroll
QuickBooks Online is the most complete accounting platform on this list, and that is the point. It is built for small businesses with staff, payroll, vendor bills, and an accountant attached. Even the entry-level QuickBooks Lite plan at $20 CAD a month is invoicing and sales-tax first, not built around the T2125 or the $30,000 threshold. It genuinely wins if you expect to hire, run payroll, or hand structured books to an accountant. For a one-person T2125 filer, it is more software than the job needs, at nearly twice the price.
Read the full QuickBooks Online comparison4.
FreshBooks
Wins at: Client invoicing for service businesses
FreshBooks is invoicing-first software for service businesses that bill clients, and that is what it does best: polished invoices, proposals, time tracking, and client management. The Lite plan starts at $26 CAD a month for up to five billable clients. If your bookkeeping is mostly about getting paid rather than getting ready for the CRA, it is a strong pick. FreshBooks does not advertise T2125 line mapping or a GST threshold tracker, so tax season stays manual.
Read the full FreshBooks 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. The Starter plan is $25 CAD a month, but it caps you at 20 invoices and 5 bills a month, a ceiling a growing sole proprietor hits quickly. It is powerful and well built, and it is designed for accountant-led small businesses rather than a solo filer who wants the software to understand the T2125 and the $30,000 threshold.
Read the full Xero comparison6.
Hurdlr
Wins at: Automatic mileage and expense tracking
Hurdlr is a mileage and expense tracker first, and it is genuinely good at automatic mileage capture and on-the-go income tracking for gig and delivery workers. Its Premium plan is US$9.99 a month. The catch for Canadians is that it tracks but does not file: Hurdlr states it does not provide tax filing in Canada. It produces a Tax Report you then use to complete your T2125 by hand. Best as a tracking companion, not the tool that gets you filed.
Read the full Hurdlr comparison7.
A spreadsheet
Wins at: Cost and control when you are tiny
A spreadsheet is free and endlessly flexible, and for a brand-new side hustle with a handful of transactions it is a reasonable place to start. It wins on cost and control. The problem is that GST tracking, T2125 categories, receipts, and six years of records all have to stay correct by hand in one file, and a single broken formula can throw your numbers off without warning. It is fine when you are tiny, and painful once you are not.
Read the full spreadsheet comparisonA note on QuickBooks Self-Employed
QuickBooks Self-Employed is still sold, at about $19.99 CAD a month, and the web version is branded QuickBooks Lite at $20 (prices as of 2026). It covers receipts, expense sorting, GST/PST/HST, mileage, invoices, and a tax summary. NorthOS covers the same ground at $12, about 40% less, and goes further on CRA T2125 line mapping, the GST/HST $30,000 threshold, and the Quick Method. If you are weighing the two, we wrote a dedicated guide.
Read the QuickBooks Self-Employed guideThe Canadian tax rules these tools are really about
The reason the ranking comes out the way it does is that Canadian self-employment has a few specific rules a generic tool ignores. These plain-language guides explain them.
- The T2125 guide for Canadian sole proprietors covers the form every self-employed Canadian files, line by line.
- When to register for GST/HST in Canada explains how the $30,000 threshold works and why timing matters.
- The GST/HST Quick Method calculator shows whether the Quick Method leaves you with more after you remit.
Rankings for specific jobs and professions
This page ranks the tools for the general sole-proprietor filing job. If your situation is more specific, we keep dedicated rankings for it.
- The best mileage tracking app for self-employed Canadians compares NorthOS, MileIQ, Driversnote, Hurdlr, and a paper log.
- The best bookkeeping software for Canadian real estate agents ranks the tools for commission income, HST, and heavy vehicle use.
- The best bookkeeping app for Canadian contractors and trades ranks the tools for the T2125, the truck, the tools, and GST/HST.
- The best receipt scanner app in Canada for the self-employed compares NorthOS, Dext, Expensify, Shoeboxed, and a plain folder.
Frequently asked questions
What is the best bookkeeping software for a Canadian sole proprietor?
For a Canadian sole proprietor whose main job is filing a T2125 and tracking GST/HST, NorthOS is the closest fit at $12 CAD a month. It maps every expense to its CRA T2125 line, tracks the rolling four-quarter revenue total against the $30,000 GST/HST registration threshold, and includes a Quick Method calculator for all 13 provinces and territories. Wave is the better pick if you only need free invoicing, QuickBooks Online if you plan to add staff and payroll, and FreshBooks if your work is mostly billing clients. The best tool depends on the job, and this ranking is for the sole-proprietor filing job specifically.
What is the cheapest bookkeeping software in Canada?
A spreadsheet and Wave's free Starter plan are the only genuinely free ongoing options, though both leave the GST threshold, T2125 mapping, and the Quick Method as manual work. Among paid tools built for Canadian sole proprietors, NorthOS is the lowest at $12 CAD a month, or $119 CAD a year. For comparison, as of 2026: QuickBooks Lite is $20 CAD a month, Xero Starter is $25, Wave Pro is about $25, and FreshBooks Lite is $26. Hurdlr's Premium plan is US$9.99 a month, but it tracks income and expenses rather than filing a Canadian T2125.
Is QuickBooks Self-Employed discontinued in Canada?
No. It is still sold. As of 2026, QuickBooks Self-Employed is listed at about $19.99 a month in Intuit's mobile app, and the web version is sold as QuickBooks Lite at $20 CAD a month. Intuit also still runs a QuickBooks Self-Employed support channel. It covers receipts, expense sorting, GST/PST/HST, mileage, invoices, and a tax summary. NorthOS covers the same ground at $12 CAD a month, about 40% less, and additionally maps every expense to its specific CRA T2125 line, tracks the GST/HST $30,000 threshold on a rolling four-quarter basis, and includes a Quick Method calculator for all 13 provinces and territories.
Do I need bookkeeping software if I make under $30,000?
No, bookkeeping software is not legally required at any income level. If you are self-employed in Canada you still have to report your business income and expenses on Form T2125 with your personal return, which you can do from a spreadsheet or a free tool. The $30,000 figure is the GST/HST registration threshold: once your rolling four-quarter revenue crosses it, you generally must register for and start charging GST/HST. Software helps mainly by tracking that threshold before you cross it and by keeping expense records in T2125 shape.
Which bookkeeping tools have a free plan?
Wave's Starter plan and a plain spreadsheet are the free ongoing options for Canadian bookkeeping. QuickBooks, Xero, and FreshBooks are paid products with time-limited free trials rather than a permanent free tier. Hurdlr advertises a free version, though some users report it is limited in practice, and Hurdlr states it does not provide tax filing in Canada. None of the free options advertise a GST/HST $30,000 threshold tracker or automatic T2125 line mapping, which is the gap NorthOS fills at $12 CAD a month.
What is the best accounting software for self-employed Canadians?
For most self-employed Canadians the honest answer is that you need bookkeeping software, not full accounting software. A sole proprietor files a T2125 with their personal return, and the job is tracking income, expenses, and GST/HST in CRA shape, which NorthOS does at $12 CAD a month. Full accounting software means double-entry books, payroll, and accountant collaboration, which is QuickBooks Online or Xero territory and matters once you incorporate or hire. Paying for a general ledger you never open is the most common way self-employed Canadians overspend on software.
Do freelancers need different bookkeeping software than sole proprietors?
No. In CRA terms an unincorporated freelancer is a sole proprietor: business income and expenses go on the same Form T2125, the same $30,000 GST/HST registration threshold applies, and the same expense categories matter. The label changes with the industry, freelancer, contractor, consultant, side hustler, but the filing job is identical, so this ranking applies to all of them. The one real fork is incorporation: once you incorporate, you file a corporate return and need double-entry software.
Bookkeeping built for the sole-proprietor filing job.
NorthOS is bookkeeping and tax compliance for Canadian sole proprietors and side hustlers. T2125 expense mapping, GST/HST $30,000 threshold tracking, the Quick Method for every province and territory, and provincial sales tax for BC, SK, and MB. $12 CAD a month.