Most organizations already use accounting software to issue invoices, track accounts payable, manage payroll and so on.
How does accounting software help?
Accounting software can help you:
- record transactions (bookkeeping)
- increase staff productivity
- get insights into overall financial performance
- create consolidated financial statements
- improve data accuracy
- decrease outstanding accounts receivable and
- make fact-based decisions.
What does accounting software do?
Accounting software handles all financial aspects of your company. The simplest programs help you pay bills, prepare invoices, calculate sales taxes, automate general ledger transactions, and track cash flow, revenue and expenses.
More sophisticated versions may include modules for payroll, inventory control, sales analysis and enhanced reporting. Some systems are customized to the needs of specific industries.
Consider today’s needs and tomorrow’s plans
Many small businesses start with invoicing or off-the-shelf accounting software but outgrow it after a few years. You may want to consider whether the vendor you select addresses more complex needs such as multi-currency or multi-company requirements, and will let you easily upgrade in the near future to a more advanced solution, such as an enterprise resource planning (ERP) system.
As your needs become more complex, ERP systems allow you to centralize internal and external information across your organization to help you plan and allocate resources more effectively. By giving everyone in your organization access to the same up-to-date information, they help you break down internal boundaries between teams and automate core processes. Worldwide vendors that are known for their ERP solutions include SAP, Oracle JD Edwards, Baan, and Microsoft Dynamics, to name a few.
However, since the price for ERP software can easily range from $10,000 to $100,000 plus implementation fees, and the focus of this review is on free and low-cost applications, ERP solutions have not been taken into consideration.
Free and low-cost accounting and invoicing software
If you are looking for low-cost or free invoicing or accounting products, you may want to consider the following. (SaaS refers to “software as a service.”)
Revised March 2023
AccountEdge
Free English French English support French support Data stored in Canada: n/a iOS app. Android Cloud or SaaS
AccountEdge offers desktop and cloud versions of their accounting program. Designed to meet the needs of small businesses, these solutions are compliant with Canadian sales taxes and payroll requirements. The desktop version lets you store your data and requires a one-time fee. The cloud version, on the other hand, hosts your data on servers located in the United States. There is also a companion app that lets your collaborators perform certain tasks remotely without giving them full access to your accounting. While the user interface is in English, the program allows you to customize invoices into the language of your choice.
Actif
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
Actif Actif by GEM-BOOKS, provides an online solution for bookkeeping and general accounting. You can start with the free . You can start basic functions and then consider other add-on modules such as advanced accounting, payroll, secure document sharing, or project management. Developed by a company based in Terrebonne, Quebec, Actif is accessible via a web browser or on the go with Android and iOS apps.
Connected Core Accounting
Free English French English support French support Data stored in Canada: n/a iOS app. Android Cloud or SaaS
Connected Core Accounting meets the accounting needs of small businesses that prefer to host their solution locally on either a PC or Mac. Growing businesses have the option to upgrade to Connected Enterprise, which includes inventory management and job costing features. Both versions can be hosted in a private cloud. Accountek is a Canadian owned and operated business based in Ontario.
Dynacom Accounting SMB Edition
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
Dynacom Accounting SMB Edition is an accounting solution with payroll processing that can grow with you. The product family also includes the Lite edition and the Enterprise+ edition, which is more suitable for the needs of medium and growing businesses. The company is headquartered in Laval, Quebec.
FreshBooks
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
FreshBooks is an entry-level online solution, developed by a Toronto-based company. It is particularly suitable for service-based businesses to create and track projects, timesheets, invoices and expenses, all in one place. iPhone and iPad apps are pretty handy for scanning receipts and tracking expenses. Invoices can be sent in both English and French, but the interface is available in English only. The company also has payroll partners in Canada and the United States.
Gestion PME
Free English French English support French support Data stored in Canada: n/a iOS app. Android Cloud or SaaS
Gestion PME offers an accounting software suite with various editions for freelancers, incorporated businesses, PoS and more. Developed by Winfly Informatique Inc. in Quebec, the software requires Microsoft Windows or Parallel Desktop. Pricing is a one-time fee for a five-year licence including software updates and support. The free trial will help you determine if the solution fits your needs.
Kashoo
Free English French: Partiel English support French support Data stored in Canada iOS app. Android Cloud or SaaS
Kashoo makes small business accounting easy. Developed by Canadian firm based in Vancouver, BC, it offers two solutions to accompany your business as you grow. TrulySmall Accounting lets businesses that are just starting out automate data entry. Kashoo, on the other hand, offers more advanced features, personalization, and deeper reporting for established businesses. The iOS apps are very popular and allow you to switch to a French interface via device settings on either an iPhone or iPad.
Momenteo
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
Momenteo meets the accounting needs of freelancers. Specifically, it allows them to issue quotes and personalized invoices, travel expenses and get a clear portrait of their financial health. Designed by a company based in Quebec City, it also offers a mobile app for iOS and Android.
QuickBooks Online
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
QuickBooks Online is a line of accounting software products designed for self-employed people and small business owners who don’t have any accounting training. There is also a QuickBooks Online Accountant version. These solutions are offered in several versions for varying monthly subscription fees. The iPad and iPhone apps offer some interesting features such as the ability to record sales and payments using a sales receipt, and to add all the customers and vendors stored as phone contacts right into QuickBooks.
Sage Accounting
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
Sage Accounting offers a line of online accounting software that can evolve with your needs. It automates billing and invoicing and seamlessly tracks GST/HST and PST/QST. It comes with a 30-day free trial.
Square Invoices
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
Square Invoices is a cloud-based invoicing solution designed to help merchants save time and get paid faster. Estimates and invoices can be sent directly from a computer, tablet/iPad or smartphone. Square Invoices is part of a larger family of products, which includes point-of-sale and payment solutions, a customer relationship management tool, and other business software. All of Square’s products work together.
Wave
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
Wave is a free, Canadian-made online software suite for managing small business finances. The free tools include accounting, invoicing, receipt scanning and personal finance, with features like unlimited bank connections, estimates/quotes, recurring invoices and accountant-approved (double-entry) reports. Customers can use its mobile invoicing app to invoice clients and accept credit cards on the go. One of its standout features is the ability to set up your accountant, bookkeeper or business partner as a “guest collaborator.” Regrettably, the payroll system cannot accommodate the needs of Quebec businesses.
Xero
Free English French English support French support Data stored in Canada: Partiel iOS app. Android Cloud or SaaS
Xero is a cloud-based accounting package that allows small businesses to keep track of their numbers with receivables and payables, along with sales tax and financial reporting. You can also create cashflow forecasts and calculate depreciation for fixed assets. The data of Canadian customers is stored on servers located either in Canada or the United States.
ZarMoney
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
ZarMoney is an affordable cloud-based software suite that goes beyond accounting software. Not only can you track expenses, issue professional invoices and create customizable reports, but you can also gain visibility into your inventory, accept online payments, and set permissions to restrict access based on user roles. It comes with a free trial.
ZipBooks
Free English French English support French support Data stored in Canada iOS app. Android Cloud or SaaS
ZipBooks offers a full suite of accounting software with various subscription plans. Designed to meet the needs of small businesses, it lets you send invoices, track time and expenses, and even provide actionable recommendations based on industry best practices. All these tools are available from your Internet browser on any mobile device, making it easy to track billable hours and send invoices on the go.
This table lists applications alphabetically and isn’t exhaustive. Hyperlinks to external sites do not constitute endorsement by BDC of those websites or any information, opinions, products or services expressed or described on them.
Furthermore, the list is only a starting point and excludes applications not offered either in English or in French, or that are neither low cost nor free. When assessing which solution is best for your organization, you will probably consider many other factors.
BDC will review and edit this list regularly. If you are an accounting software vendor and would like us to consider adding your solution, please contact us.