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Xero vs QuickBooks Online in Canada: Plans, Payroll and Fit

Updated

Xero and QuickBooks Online are both full accounting platforms, the kind an accountant can work in directly, rather than invoicing tools with bookkeeping added. Both cover the core bookkeeping a small business needs; the differences are in price structure, payroll and a few features that sit on different plans. This page compares them for a Canadian business. The best accounting software comparison adds Wave and FreshBooks, and the self-employed tax hub links the other small business guides.

Plans and prices

XeroQuickBooks Online
PlansStarter, Standard, PremiumLite, EasyStart, Essentials, Plus and Advanced
Regular price (CAD/month)$25 / $60 / $80Shown beside the introductory offer on Intuit’s pricing page
Entry plan limit20 invoices and 5 bills a month on Starter1 user on EasyStart
How higher plans scaleUnlimited invoices and bills from Standard; multi-currency on PremiumUsers: 3 on Essentials, 5 on Plus, 25 on Advanced

Both companies discount the first months for new customers, so the regular price is what matters for the long run.

Features that sit in different places

FeatureXeroQuickBooks Online
Multi-currencyPremiumEssentials and up
Time and project costsProjects add-on, from $10/month on any planTime tracking from Essentials; project profitability from Plus

Xero also includes Hubdoc, its receipt and bill capture app, on every plan, and sells employee expense and mileage claims as an add-on from $5 a month. QuickBooks includes inventory tracking from Plus.

Payroll

Xero doesn’t run payroll itself in Canada. It connects to third-party payroll apps, including Wagepoint, PaymentEvolution and Payworks, which means a second subscription and login for a business with staff. Intuit sells its own payroll product alongside QuickBooks Online. For a business where payroll runs every couple of weeks, it’s worth pricing the full combination: Xero plus a payroll app, against QuickBooks plus Intuit’s payroll.

Choosing between them

  • Your accountant’s package. If an accountant or bookkeeper keeps or reviews your books, the package they already use is usually the practical choice.
  • Payroll. A connected payroll app with Xero, or Intuit’s own with QuickBooks.
  • Foreign currency. Multi-currency comes on Xero’s top plan and on QuickBooks from Essentials.

QuickBooks offers a 30-day free trial and Xero discounts its first three months, so either can be tried with real transactions before committing to the regular price. For a service business that bills by the hour, the QuickBooks vs FreshBooks comparison may be the more relevant choice.

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Sources

The figures and rules on this page come from these sources, last checked against them on September 25, 2026. How we check facts.