What is billing software and why do Canadian businesses need it?

Billing software automates invoice creation, payment tracking, and tax calculation. Canadian businesses need it because GST/HST/PST rules vary across 13 provinces — billing software applies the correct tax automatically, generates CRA-ready records, and tracks who has paid and who hasn't.

What's the difference between billing software and accounting software?

Billing software focuses on sending invoices and collecting payments. Accounting software handles the full financial picture: journal entries, chart of accounts, bank reconciliation, and financial statements. iBill includes both — billing for client-facing work and double-entry accounting for your books.

How long should I keep billing records in Canada?

The CRA requires you to keep all business records, including invoices and payment records, for at least 6 years from the end of the last tax year they relate to. Billing software stores these records digitally with a complete audit trail.

Billing Software

Billing Software for Canadian Small Businesses

Automate recurring billing, track payments, and generate CRA-ready reports with automatic GST/HST/PST for supported Canadian provinces.

Create Invoice View All Templates

Billing for Every Industry

No matter your business type, iBill handles your billing and tax needs

Graphic Designers

Logo, branding, print

Web Developers

Websites, apps, coding

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Writers & Editors

Content, copywriting

Photographers

Events, portraits, commercial

Social Media

Marketing, management

Video & Audio

Editing, production

Consultants

Business, IT, strategy

Translators

Languages, localization

Start Billing in 4 Steps

Set up your billing in minutes and send your first invoice today

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Add Your Details

Enter your business name (or personal name), address, email, and phone. Add your GST/HST number if you're registered.

Add Client Info

Enter your client's name, company name (if applicable), address, and email. Reference the project or contract if you have one.

List Your Work

Describe each service provided with hours or flat rates. Be specific to avoid questions - "Logo design: 12 hours @ $85/hr".

Send & Follow Up

Email your invoice as a PDF. iBill tracks payment status and can send automatic reminders for overdue invoices.

Create Your First Invoice

Flexible Billing Options

Invoice however works best for you and your clients

⏱️ Time-Based Billing

Perfect for ongoing work. Use iBill's built-in timer to track hours and convert to invoices with one click.

Example: 15 hours × $75/hr = $1,125
+ GST (5%) = $1,181.25

Project-Based

Ideal for defined deliverables with clear scope. Quote a flat fee for the entire project.

Example: Website Design = $3,500
+ HST (13%) = $3,955

Retainer

Monthly recurring invoices for ongoing client relationships. Predictable income for you.

Example: Monthly Retainer = $2,000
+ GST (5%) = $2,100/month

Sample Invoice

Sarah Chen Design

456 Creative Lane
Toronto, ON M5V 2T6
GST #: 987654321 RT0001

INVOICE

#SC-2026-042
Date: Dec 18, 2026

Bill To:

Maple Tech Inc.
789 Startup Blvd
Toronto, ON M5H 1T1

Project:

Brand Identity Package
Due: Jan 17, 2026
Terms: Net 30

Description	Hours	Rate	Amount
Logo design & concepts	12	$85/hr	$1,020.00
Brand guidelines document	8	$85/hr	$680.00
Business card design	4	$85/hr	$340.00
Revisions (2 rounds)	6	$85/hr	$510.00

Subtotal (30 hrs): $2,550.00

HST (13%): $331.50

Total Due: $2,881.50 CAD

Billing Tips for Service Businesses

Be Specific

Detail exactly what work was completed. Vague descriptions lead to payment delays and disputes.

Invoice Promptly

Send invoices immediately after completing work. The longer you wait, the longer you wait to get paid.

Offer Payment Options

Include Interac e-Transfer, PayPal, or bank details. Make it easy for clients to pay you quickly.

Use Contracts

Always have a contract before starting work. Reference the contract/project on your invoice.

Track Everything

Keep records of all invoices for tax time. iBill.ca stores your history automatically. Learn about CRA requirements.

⏰ Set Clear Terms

Net 15 or Net 30 are common. Include late payment fees in your contract to encourage timely payment.

How Billing Software Saves Time for Canadian Businesses

Manual billing — spreadsheets, Word documents, PDF templates — works until it doesn't. Once you're sending more than a few invoices per month, the time spent formatting, calculating taxes, and chasing payments adds up. Billing software automates the repetitive parts so you can focus on the work that earns revenue.

Automatic Tax Calculation Across 13 Provinces

Canada's tax system is uniquely complex. Ontario charges 13% HST as a single tax. BC charges 5% GST and 7% PST separately. Quebec charges 5% GST and 9.975% QST (applied on the subtotal only, not compounded). Alberta charges just 5% GST. Getting these wrong on an invoice means incorrect CRA remittances and potential audit issues. Billing software applies the correct rates automatically based on your client's province, so every invoice is accurate without manual lookups.

Recurring Billing for Retainers and Subscriptions

If you bill the same clients monthly — retainer agreements, maintenance contracts, subscription services — recurring billing eliminates the most repetitive task. Set up a schedule once and invoices are generated and sent automatically. Combine with online payments and auto-charge to create a fully hands-off billing cycle: invoice generated, sent, and paid without you touching anything.

Payment Tracking and Follow-Up

Knowing who owes you money and how long it's been outstanding is critical for cash flow. Billing software tracks invoice status — draft, sent, overdue, paid — in real time. Automatic payment reminders go out before and after the due date, so you don't have to send awkward follow-up emails. The AR aging report shows your outstanding receivables at a glance.

CRA Record-Keeping Made Automatic

The CRA requires businesses to keep all invoices and financial records for at least 6 years. Billing software maintains a complete, searchable audit trail automatically. Every invoice, payment, and tax amount is recorded and available for export. When it's time to file your GST/HST return, tax reports show exactly how much tax you collected and owe, broken down by period.

See the full list of capabilities on our features page, or explore our GST invoice calculation guide and CRA invoice requirements for compliance details.

Billing Software FAQs

What does billing software do?

Billing software automates invoice creation, tax calculation, payment tracking, and financial reporting. You create an invoice, the software applies the correct GST/HST/PST based on your client's province, sends it via email or client portal, tracks whether it's been paid, and records the payment for your books. It replaces manual spreadsheets and PDF templates.

Does billing software handle GST/HST automatically?

Yes. iBill calculates GST, HST, PST, and QST automatically based on your client's province. Ontario clients get 13% HST. BC clients get 5% GST + 7% PST. Quebec clients get 5% GST + 9.975% QST. Tax is applied without manual entry. Use our GST/HST calculator to check rates for any province.

Can I set up recurring billing?

Yes. Create a recurring invoice schedule with custom frequency — weekly, biweekly, monthly, quarterly, or annually. Invoices are generated and sent automatically. Combine with online payments and auto-charge for fully hands-off billing.

Can clients pay invoices online?

Yes. iBill integrates with Stripe for online payments. Clients receive a payment link on their invoice and pay directly via Stripe through a client portal. Payments go directly to your bank account.

Can I invoice in USD or other currencies?

Yes. iBill supports CAD, USD, EUR, and GBP invoicing. Exchange rates are sourced from the Bank of Canada. The system tracks the CAD equivalent of every transaction for your tax records, and calculates forex gain/loss on payment.

How does billing software help with CRA tax reporting?

Billing software tracks all tax collected on every invoice. At filing time, tax reports show total GST/HST/PST collected by period, making it straightforward to complete your return. iBill also maintains a full audit trail as required by CRA record-keeping rules (6-year retention).

Does iBill include accounting features?

Yes. iBill includes double-entry accounting — chart of accounts, journal entries, bank reconciliation, trial balance, income statement, and balance sheet. Every invoice and payment is automatically posted to the general ledger.

Can I track time and expenses?

Yes. iBill includes built-in time tracking (timer and manual entry) and expense tracking with receipt uploads. Convert tracked hours to invoices with one click. Log mileage with CRA-rate calculations.

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Billing Software Guide for Canadian Businesses

What to Look for in Canadian Billing Software

Billing software for Canadian businesses needs to handle the complexity of provincial tax rules. Look for automatic GST/HST/PST calculation by province, CRA-ready invoice formatting (business name, GST/HST number, sequential invoice numbers), payment tracking with overdue reminders, and financial reporting for tax filing. The best billing software also includes accounting features so your invoices flow directly into your books without double-entry.

Recurring Billing for Service Businesses

If you bill clients on a regular schedule — monthly retainers, maintenance contracts, subscription services — recurring billing is the highest-impact feature to look for. Set up the schedule once and invoices are generated and sent automatically. The best systems support variable billing (different amounts each cycle), auto-charge with saved payment methods, and automatic payment reminders for any invoices that aren't paid by the due date.

Online Payments for Canadian Businesses

Accepting online payments reduces the time between sending an invoice and receiving payment. Clients click a link on the invoice and pay via Stripe. Payments go directly to your bank account. For businesses with recurring clients, saved payment methods allow auto-charging on each billing cycle — the invoice is generated, charged, and marked as paid without manual steps.

GST/HST Registration and Billing

Canadian businesses must register for GST/HST when their annual revenue exceeds $30,000 over four consecutive calendar quarters. Once registered, you must charge the correct tax on every invoice based on the client's province: 5% GST in Alberta, BC, Manitoba, and Saskatchewan; 13% HST in Ontario; 14% HST in Nova Scotia and 15% HST in New Brunswick, Newfoundland and Labrador, and PEI. Quebec uses 5% GST plus 9.975% QST. Billing software applies these rates automatically, eliminating manual lookups and calculation errors.

Multi-Currency Billing

Canadian businesses that serve US or international clients need to invoice in foreign currencies. Billing software with multi-currency support lets you bill in USD, EUR, or GBP while automatically tracking the CAD equivalent using Bank of Canada exchange rates. This is essential for CRA reporting — all income must be reported in Canadian dollars regardless of the billing currency. The system also tracks forex gain/loss when the exchange rate changes between invoicing and payment.

Billing Software vs. Accounting Software

Billing software handles the client-facing side: creating invoices, collecting payments, and sending reminders. Accounting software handles the internal side: chart of accounts, journal entries, bank reconciliation, and financial statements. Many businesses need both. iBill combines billing and double-entry accounting in one platform — every invoice and payment is automatically posted to the general ledger, so your books are always up to date without manual journal entries.

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Canadian businesses use iBill for billing, accounting, and tax reporting.

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