QuickBooks Online Canada is the most commonly used accounting platform among Canadian small businesses, but its initial setup has more steps than simpler tools like Wave or FreshBooks. This guide walks through the setup specifically for Canadian freelancers and sole proprietors.
Before You Start
You need: your business name (or your legal name if operating without a trade name), your province, your CRA Business Number (if registered for GST/HST), and access to your business bank account for connection. QuickBooks offers a 30-day free trial at quickbooks.intuit.com/ca — no credit card required.
Step 1: Initial Company Setup
- Sign up at quickbooks.intuit.com/ca and select QuickBooks Online EasyStart (the correct plan for most sole proprietors)
- Select “Sole proprietorship” as your business type
- Enter your business name, province, and industry
- Select “Service-based business” (not product) if you provide professional services
- Skip payroll setup — most freelancers do not need it
Step 2: Chart of Accounts
QuickBooks auto-creates a default chart of accounts based on your business type. Review and simplify it — most freelancers need:
- Income: Services Revenue (or separate accounts per service type if you want project-level tracking)
- Expenses: Create categories that match T2125 lines — Advertising, Office Expenses, Professional Fees, Telephone & Utilities, Travel, Meals & Entertainment
- Assets: Business Bank Account, Accounts Receivable (auto-created)
- Liabilities: GST/HST Payable (auto-created when you set up sales tax)
Step 3: Sales Tax (GST/HST) Setup
This is the most important configuration step for registered Canadian freelancers:
- Go to Settings → Sales Tax
- Confirm your country is Canada and your province is selected
- Enter your GST/HST registration number (Business Number + RT0001)
- Select your filing frequency (Annual for most new registrants under $1.5M revenue)
- QuickBooks will create the appropriate tax codes — verify the rate matches your province (Ontario: 13% HST, Alberta: 5% GST, etc.)
- Create a “Zero-rated export” tax code at 0% for international client invoices
Step 4: Connect Your Bank Account
- Go to Banking → Add Account
- Search for your Canadian bank (RBC, TD, Scotiabank, BMO, CIBC, or credit union)
- Sign in with your online banking credentials to authorize the connection
- Select your business chequing account (and any business credit cards)
- Set up bank rules for recurring transactions — e.g., “If payee contains ‘Adobe’ → categorize as Office Expenses”
Step 5: Invoice Template
- Go to Settings → Custom Form Styles
- Edit the default invoice template with your business name, logo (if any), and contact information
- Set payment terms (Net 14 recommended for most freelancers)
- Add “GST/HST Number: [your number]” to the footer if you are registered — required on invoices over $30 to GST/HST-registered clients
Step 6: Add Clients and Send Your First Invoice
- Go to Sales → Customers → Add Customer
- Enter client name, email, and address (province matters for correct tax rate application)
- Go to + New → Invoice, select the customer, add line items with descriptions and amounts
- Verify the tax applied is correct (13% HST for Ontario client, 0% for US client)
- Send via email or download as PDF
Frequently Asked Questions
How do I file my GST/HST return directly from QuickBooks?
Go to Taxes → Sales Tax → Prepare Return. QuickBooks calculates your net tax owing based on the period’s transactions. Review the amounts, then select “File and Submit.” QuickBooks connects to your CRA My Business Account via NETFILE for Businesses. You may need to set up the CRA connection in your QuickBooks settings — go to Settings → CRA My Business Account and authorize the connection using your CRA login credentials.
What if I’ve been using Wave and want to switch to QuickBooks?
Plan the switch for January 1 of a new year. Export your Wave data (transactions and customer list as CSV). In QuickBooks, use the import function under Settings → Import Data to bring in transactions. Your prior-year Wave records stay in Wave for historical reference. Most accountants recommend starting fresh in QuickBooks for the new fiscal year rather than migrating historical data, which is often messy.
Can my accountant access my QuickBooks Online account?
Yes — go to My Accountant → Invite Accountant and enter your accountant’s email. They receive access to view and adjust your books without needing your login credentials. On EasyStart, your accountant access is in addition to your own single user login. If both you and your accountant need simultaneous ongoing access, Essentials (two users) or Plus is required.