QuickBooks Online, Xero or Sage 50: how to choose for a BC small business
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All three can keep a BC small business’s books properly. The choice turns on payroll, who needs access and from where, and what history already sits in your current file.
Download the checklist · text file
Short answer: if you already have clean books in one of the three, staying put is usually cheaper than moving. If you are starting fresh, QuickBooks Online and Xero are cloud software you open in a browser, and Sage 50 is desktop software installed on a Windows computer. Payroll is the clearest difference: Intuit sells its own Canadian payroll for QuickBooks Online, while Canadian Xero users typically run payroll in a connected app such as Wagepoint.
The three side by side
| Feature | QuickBooks Online | Xero | Sage 50 |
|---|---|---|---|
| Where it runs | In a browser, in the cloud | In a browser, in the cloud | Installed on a Windows computer |
| Canadian payroll | Intuit’s own payroll, sold as a paid option | Through a connected app, such as Wagepoint | Sage’s own payroll, on plans that include it |
| Access for a bookkeeper | An invited user or accountant login | An invited user or advisor login | Remote Data Access, for users with Sage 50 installed |
Feature lists, plan names and app connections change often, so check the vendor’s own page, and its app listings for your store and payment apps, before you buy.
Questions that decide it
- Do you run payroll? If so, decide whether you want payroll inside the accounting software or in a connected app, and who will run it
- Who needs to get in, and from where? Cloud software suits an owner, a bookkeeper and a tax preparer working from different places
- How much inventory do you carry? Stock counts, costing and purchase orders vary more between products than ordinary bookkeeping does
- What is already in your current file? Years of history, open invoices and payroll records all have to be moved or kept readable
- Which apps does the business already use? Check that your point of sale, store and payment apps connect to the one you pick
- Who will do the work? Software the bookkeeper knows well costs less to keep up each month
Before you switch software
A switch is a project, not a setting. The cleanest time is the start of a fiscal year or a GST reporting period, with the old file reconciled to that date and the opening balances agreed before anything new is entered.
The CRA requires electronic records to be kept in an electronically readable format, even if you also have paper printouts, and its guidance is to keep backups that can be restored in a format the CRA can use. When the old software is cancelled, its data has to stay readable for the full retention period, so plan for that before you cancel.
Questions people ask
Which is best for a small business in BC: QuickBooks Online, Xero or Sage 50?
None is best for everyone. QuickBooks Online and Xero are cloud software, and Sage 50 is installed on a Windows computer. Payroll needs, who needs access, inventory and the history already in your file usually decide it.
How do Xero users in Canada run payroll?
Typically through a connected payroll app, such as Wagepoint, listed in Xero’s Canadian App Store, which posts each pay run into Xero. Check what Xero currently offers in Canada before you decide.
Can my bookkeeper work in Sage 50 remotely?
Sage’s Remote Data Access shares the company file over the internet with users who have Sage 50 installed. Whether that suits monthly remote work, or a move to cloud software suits better, is settled in the written quote, before anything starts.
Does accounting software handle GST and PST?
All three track GST and PST on sales and purchases, and produce reports for the returns. Which tax code goes on which line is still a bookkeeping decision, and a wrong setup repeats itself every month.
Do I have to change software to work with you?
No. We work in QuickBooks Online, Xero and Sage 50. A move to new software is quoted separately, before it starts.
Switching bookkeepers: the handover checklist →
Reconciling Shopify and Stripe payouts →
What running payroll in BC involves →
Want this handled for you
This is the work we do for clients every month. Tell us what you sell and where your books stand, and a written plan and a fixed monthly price follow within one business day.
We set up and keep books in QuickBooks Online and Xero →
info@orbisaccounting.ca