Updated Checked by the Tax-Services.ca editorial team How we check
No official body publishes a list of the accounting software Canadian bookkeepers use, and we found no reliable survey, so there is no ranking here. What matters is whether a package gets GST/HST, QST and payroll right, and whether it can hand your records over in a form the CRA can read.
This page is short on purpose. Anything about prices, discounts or which product leads the market would be a guess, so it stays out.
What the CRA requires of your records
The software is your choice. The rules aren’t. The CRA says business records must be kept for at least six years from the end of the latest year they relate to. If you keep them electronically, you have to keep them in a readable electronic format for that period, even when you also have paper copies.
Backups matter too. The CRA encourages copies stored at another location in Canada, and an encrypted or proprietary backup has to be restorable to a usable state later. A copy is usable when the CRA can process it with its own software, which means a common data format rather than a locked one.
One line surprises people, especially people who do this for a living.
You are responsible for making sure adequate records are kept even if a bookkeeper, accountant, Internet transaction manager, or application service provider keeps your business records for you.
CRA, Keeping Records (RC188), canada.ca
That’s written to business owners, but it shapes what your clients will ask you. Handing the books to a bookkeeper, an accountant or a cloud provider doesn’t remove the owner’s duty to keep, read and produce the records. So ask before you sign up: how do I export everything if I leave?
What to ask before you pick accounting software
| Ask | Why it matters |
|---|---|
| Does it export every transaction in a common format? | You must be able to produce readable records for six years |
| Can you set provincial tax codes and rates? | HST, GST plus PST and GST plus QST all work differently |
| Does it handle payroll and remittances? | CPP and EI amounts must match official tables |
| Where is the data stored, and can you back it up? | The CRA encourages backups kept in Canada |
| Can a bookkeeper and an owner both log in? | Clients often need read access while you post entries |
| What happens to your file if you cancel? | Records must stay readable for six years |
Test the tax handling with real numbers
Before you commit, run a few known figures through whatever trial or demo you can get. Three are quick to check.
First, sales tax on a $565 Ontario receipt with tax included. It should split into $500 and $65 of HST. The reverse HST calculator gives the same split, so you can compare. Second, a $500 Quebec sale. GST is $25.00 and QST is $49.88, for a total of $574.88, because QST is worked out on the price before GST. Our GST and QST calculator shows this. If the software gets QST wrong, don’t use it for Quebec clients.
Third, payroll. For a $75,000 salary in Ontario, the take-home pay calculator shows CPP of $4,246.45 and EI of $1,123.07. Small differences can come from how a package rounds per pay period, but a gap of hundreds of dollars means something is set up wrong. For remittance timing, see the payroll remittance calculator.
Can you run your own books on the same package?
Usually yes, with one catch worth knowing. The CRA’s quick method of accounting for GST/HST, a simplified way of remitting for small businesses, isn’t open to people who provide bookkeeping, financial consulting or tax return preparation services. So if your own practice would otherwise be a candidate, the software’s quick method setting won’t be for you, and it should still handle the regular method with input tax credits properly. Check that before you wire up your own invoices.
How should a bookkeeper handle clients on different tools?
Clients rarely choose the same package, so a few habits keep the work safe. Keep a one page list for each client showing the tool, who owns the login, where the data sits and how to export it. Test the export in the first week, and save a copy of each year’s file in a common format once the books close. The CRA’s six year period applies to whichever tool made the entry.
Agree in writing who is the owner of the data, who pays when a subscription lapses, and who tells the client if a tool changes how it categorizes. For the owner’s side of the choice, read our guides on accounting software features and the best accounting software for a small business.
Mistakes to avoid
- Choosing on a screenshot. Try a real month of your client’s bank data first.
- Trusting that a “Canadian edition” has the right rates. Check them against the CRA table yourself.
- Letting each client pick a different tool without a filing plan. Six years of records in six formats is a headache, and it hits at tax time when you can least afford it.
- Skipping the export test. Do it in week one, not when you leave.
Sole proprietors can also use the self-employed tax calculator to see what their own books should roughly produce at year end. It’s a ballpark, not a return.
Where the numbers come from
Record keeping rules come from the CRA pages on where to keep your records, acceptable formats and backing up electronic files and keeping records (RC188), read in November 2026. The quick method eligibility comes from the CRA guide to that method. Test figures come from this site’s calculators using 2026 rates. We did not verify any software vendor’s features, ratings or prices, and this site has no link with the CRA or any government.
Frequently asked questions
Which accounting software do Canadian bookkeepers use most?
We could not find a reliable official or survey source, so we do not name one. Test each package against the client’s needs: provincial sales tax, payroll, bank feeds, who can log in, and a full export. A bookkeeper who works with several tools should keep a one page list of logins and exports for each client.
How long must business records be kept?
The CRA says at least six years from the end of the latest year they relate to. Electronic records must be kept in a readable electronic format for that period even if you also hold paper copies. You need the CRA’s permission to destroy anything sooner, so an export test in week one is worth the time.
Can records be stored only in the cloud?
Electronic records must stay readable for six years. The CRA encourages backup copies at another location in Canada, and an encrypted or proprietary backup must be restorable later. Using a cloud provider does not remove the owner’s duty, so check where the provider stores your data and keep your own export.
What should the software calculate correctly?
Provincial sales tax, including QST worked out on the price before GST, and payroll CPP and EI. A $500 Quebec sale should give $25.00 of GST and $49.88 of QST, for $574.88. A $75,000 Ontario salary should give CPP of $4,246.45 and EI of $1,123.07 on our 2026 data, within small rounding differences.
How can I test the sales tax settings?
Run a $565 Ontario receipt with tax included. It should split into $500 and $65 of HST. Then run a Quebec sale and a sale in a province with PST. If a package gets one province wrong across a year of invoices, the correction is large, so test every province you serve before you commit.
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