Best invoicing software for Canadian service businesses

The Canadian tax problem

Most invoicing tools were built in the US and treat tax as an afterthought. In Canada, it's not simple:

• GST (5%) — federal, applies across Canada except where HST covers it
• PST (7% BC, 6% SK, 8% MB, 9.975% QC) — provincial, stacks on top of GST
• HST (13-15%) — harmonized, applies in ON, NB, NL, NS, PE
• QST (9.975%) — Quebec-only, separate from GST
• Exemptions — some services are zero-rated, some are exempt, rules vary by province

You need a tool that handles stacked taxes (GST + PST on one invoice), shows tax summaries clearly on every invoice, and generates reports you can use for filing. Many tools don't do this well.

At a glance

1. Latinum — Best for Canadian service businesses

Latinum was built in Vancouver by a Canadian business owner who needed GST/PST invoicing for his own MSP. Tax rates are first-class — you create multiple rates (GST 5%, PST 7%), choose whether they apply per line item or per invoice, and stack them on a single invoice. Tax summaries appear on every invoice and in tax reports you can use for filing.

Beyond invoicing, Latinum includes time tracking, expense tracking, online payments via Helcim (Canadian processor) or Stripe, retainers, and recurring invoices. It's the full billing cycle for a Canadian service business.

• Stacked taxes: GST + PST on one invoice, calculated independently
• Helcim integration: Canadian payment processor — money stays in Canada, lower fees for Canadian cards
• Data residency: stored on Canadian servers
• Tax reports: generate reports by rate and date range for filing
• Time tracking built in: track billable hours and turn them into invoices automatically

Pricing: $3 CAD/seat/mo. No usage fees.

2. FreshBooks — Good Canadian option, no time tracking

FreshBooks was founded in Toronto and handles Canadian taxes well. It's a solid invoicing and accounting tool. However, its time tracking is basic compared to a dedicated time tracker, and it doesn't have a Canadian payment processor (Stripe only).

• Pros: Canadian origin, good GST/HST support, accounting built in, receipt scanning
• Cons: Basic time tracking, no Helcim, no stacked GST+PST on a single line item, data stored in US, no retainers
• Pricing: $11-26/user/mo (billed annually)

3. QuickBooks Online — Full accounting, no time tracking

QuickBooks is the accounting standard. If you need full double-entry bookkeeping, it's the default. Canadian tax handling is solid. But there's no time tracking — you'd need a separate tool for that.

• Pros: Full accounting, GST/HST filing built in, payroll available, massive integration ecosystem
• Cons: No time tracking, no Helcim, data stored in US, expensive at higher tiers, no retainers
• Pricing: $12-40/mo (billed annually)

4. Wave — Free accounting, but payments discontinued

Wave was a Canadian success story — free accounting for small businesses. But H&R Block acquired Wave and discontinued Wave Payments in Canada. You can still create invoices, but clients can't pay online through Wave anymore.

• Pros: Free accounting, Canadian origin, GST/HST support
• Cons: No online payments in Canada (discontinued), no time tracking, no Helcim, limited features vs paid alternatives
• Pricing: Free (but payments cost extra through Stripe)

5. Stripe Invoicing — Payments only, no tracking

Stripe can create and send invoices, and it's excellent at payment processing. But there's no time tracking, no expense tracking, and no Canadian tax-first design. You'd set up tax rates manually in Stripe's dashboard.

• Pros: Best payment acceptance rates, global, developer-friendly API
• Cons: No time tracking, no expense tracking, manual tax setup, not built for Canadian tax compliance, data in US
• Pricing: 2.9% + 30¢ per transaction (standard card processing)

Our recommendation