If you’re a Canadian freelancer trying to pick a bookkeeping tool, you’ve probably landed on the same three options everyone else does: a spreadsheet, Wave, or something purpose-built like Accountly.
All three can work. The right one depends on how you work, what you need at tax time, and how much manual effort you’re willing to put in. This is a straightforward comparison.
Why these three?
Most Canadian freelancers start with a spreadsheet. It’s free, it’s familiar, and it feels like enough, until tax season arrives and you realize you’ve been guessing at categories for months.
Wave is the next logical step. It’s free, it’s Canadian, and it does real accounting. A lot of freelancers use it and it works fine for basic bookkeeping and invoicing.
Accountly is newer and built specifically for Canadian self-employed workers, the kind of people filing a T2125 every year and wondering if they’re doing it right.
Each has genuine strengths.
Spreadsheets: the DIY approach
Pros:
- Completely free (Google Sheets, Excel, LibreOffice)
- Total flexibility: build whatever system you want
- No learning curve if you already know spreadsheets
- Your data, your format, your rules
Cons:
- Every entry is manual. Every. Single. One.
- No receipt scanning. You’re saving PDFs in a folder somewhere and hoping you can match them later
- No built-in tax categories. You have to know what goes on your T2125 and map it yourself
- Formula errors are easy to make and hard to catch
- No GST/HST tracking or ITC calculations unless you build it
- If the CRA asks for records, you’re pulling together a patchwork of files
- No reporting: you get whatever you build
Spreadsheets work if your freelance income is straightforward: a few clients, minimal expenses, no GST/HST. The moment things get more complex, you’re spending more time maintaining the spreadsheet than doing the work it’s supposed to simplify.
Wave: the free accounting app
Wave has been around since 2010, built in Toronto, and used by a lot of Canadian small businesses. H&R Block acquired it in 2020.
Pros:
- Free accounting and invoicing
- Canadian company, understands Canadian tax basics
- Bank connections for importing transactions
- Professional-looking invoices
- Established product with a large user base
Cons:
- The product has been split into separate apps: accounting, invoicing, and payments are no longer in one place
- No mileage tracking
- No native T2125 mapping, so you still need to figure out which CRA categories your expenses belong to
- Mobile experience is limited
- Support can be slow, especially on the free tier
- No receipt scanning in the free plan
- Since the H&R Block acquisition, the product direction has shifted toward payroll and payments rather than solo freelancer features
Wave is solid for invoicing. If your main need is sending professional invoices and tracking who’s paid, it does that well. For expense tracking and tax prep as a self-employed Canadian, there are gaps.
Accountly: built for Canadian self-employed
Full disclosure: this is our product, so take this section with that context. We’ll be honest about what we do and don’t do well.
Pros:
- T2125 expense categories are built in. You pick a category and it maps to the right CRA line
- GST/HST tracking with ITC calculations
- Receipt scanning on mobile. Snap a photo, it extracts the details
- All-in-one web and mobile app (no separate apps for different functions)
- Mileage tracking
- Built specifically for Canadian freelancers and self-employed workers
- Free tier available
Cons:
- Newer product with a smaller community and fewer integrations than Wave
- Invoicing features are less mature than Wave’s
- No payroll (if you have employees, you’ll need another tool)
- Fewer bank connections than established competitors
Where Accountly shines is the tax side. If your biggest headache is figuring out what goes where on your T2125, tracking GST/HST, and pulling together what you need for filing, that’s what it’s designed for.
Feature comparison
This is the part that matters most. Here is how the three stack up across the features Canadian freelancers actually use:
| Feature | Spreadsheets | Wave | Accountly |
|---|---|---|---|
| Expense tracking | Manual entry | Auto-import from bank | Auto-import + manual + receipt scan |
| Invoicing | DIY templates | Yes (strong) | Yes (basic) |
| T2125 categories | Manual mapping | Manual mapping | Built-in |
| Receipt scanning | No | Paid plan only | Yes (included) |
| GST/HST tracking | Manual | Basic | Full tracking + ITC |
| Mileage tracking | Manual | No | Yes |
| Reporting | Whatever you build | Basic reports | Tax-ready reports |
| Mobile app | Sheets app (limited) | Limited | Full-featured |
| Bank connections | No | Yes | Yes (fewer banks) |
| Payroll | No | Yes (paid) | No |
| CRA-ready output | No | No | Yes (T2125 mapped) |
| Multi-platform | Web | Web + limited mobile | Web + mobile |
No single tool wins every category. Wave has the best invoicing. Spreadsheets give you the most flexibility. Accountly has the strongest tax integration for Canadian self-employed filers.
Pricing: what do you actually pay?
| Spreadsheets | Wave | Accountly | |
|---|---|---|---|
| Base cost | Free | Free | Free tier available |
| Invoicing | Free (DIY) | Free | Included |
| Receipt scanning | N/A | Paid add-on | Included in free tier |
| Payments processing | N/A | 2.9% + $0.60 per transaction | N/A |
| Payroll | N/A | $40/mo + $6/employee | N/A |
| Premium features | N/A | Varies by add-on | Paid tier for advanced features |
“Free” means different things for each option. Spreadsheets are genuinely free but cost you time. Wave is free for basics but charges for payments and payroll. Accountly has a free tier that includes receipt scanning and T2125 categories, with a paid tier for additional features.
The real cost of spreadsheets is time. If you spend an extra 2-3 hours per month on manual entry and reconciliation, that’s 24-36 hours a year. That’s worth something, even if the tool itself is free. And that’s before you factor in the risk of formula errors that could affect your T2125 filing.
Who each tool is best for
Choose spreadsheets if:
- Your freelance income is simple (1-2 clients, few expenses)
- You’re comfortable with formulas and manual tracking
- You don’t need to track GST/HST
- You genuinely enjoy building your own systems
Choose Wave if:
- Invoicing is your primary need
- You want free accounting software with bank imports
- You don’t need mileage tracking or T2125 mapping
- You’re comfortable figuring out CRA categories on your own at tax time
Choose Accountly if:
- You file a T2125 and want your categories mapped correctly from day one
- You need to track GST/HST and ITCs
- You want receipt scanning without paying extra
- You want one app for expenses, mileage, and tax reporting on mobile and web
- You’re tired of guessing whether you’re doing your bookkeeping right for the CRA
There’s also a fourth option that plenty of freelancers overlook: QuickBooks Self-Employed. It’s more expensive ($20+/mo CAD) and designed primarily for the US market, and the Canadian features can feel bolted on. We have a separate comparison if you’re considering it.
The honest take
If you’re earning under $10,000 a year freelancing with minimal expenses, a spreadsheet is probably fine. Keep it simple.
If you’re sending a lot of invoices and need a polished client experience, Wave’s invoicing is hard to beat at the free price point.
If you’re a Canadian freelancer earning enough that taxes are a real concern, especially if you’re registered for GST/HST or have a mix of expenses you need to categorize properly, Accountly is built for exactly that workflow.
The worst option is doing nothing and scrambling in April. Any of these three is better than a shoebox of receipts. If you want to understand more about what’s involved in filing as a Canadian freelancer, our freelance taxes guide covers the fundamentals.
Frequently asked questions
Is Wave really free? Wave’s core accounting and invoicing features are free. Payments processing, payroll, and some premium features like receipt scanning cost extra. There are no time limits on the free plan.
Can I switch from Wave or spreadsheets to Accountly? Yes. You can import your existing expense data. The main setup work is re-categorizing expenses to T2125 categories, which Accountly makes straightforward since the categories are built in.
Do I need accounting software if I have a simple freelance business? Not necessarily. If you have one client, few expenses, and earn under the GST/HST threshold, a well-maintained spreadsheet can work. The risk is that “simple” businesses tend to get more complex over time, and switching tools mid-year is annoying.
Does Accountly replace my accountant? No. Accountly is a bookkeeping tool that keeps your records organized and CRA-ready. Many freelancers use it alongside an accountant. It reduces the time (and cost) your accountant spends organizing your records, so they can focus on strategy and filing.
Is my data safe with these tools? Spreadsheets stored locally are as secure as your computer. Cloud spreadsheets (Google Sheets) depend on your Google account security. Wave and Accountly both use encryption and secure cloud infrastructure. Accountly stores data on Google Cloud with encryption at rest and in transit.
What if I’m registered for GST/HST: which tool handles that best? Spreadsheets require you to build GST/HST tracking manually. Wave has basic sales tax tracking. Accountly has full GST/HST support with automatic ITC calculations, which matters if you’re filing quarterly or annually. Try it free and see how it works with your setup.
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