Canada’s Smallest Businesses Deserve a Simpler Future

As I was reading through Canada’s Budget 2025, one thing stood out to me.

Behind the headlines about billions for infrastructure, defence, housing, and productivity, a quiet revolution is underway in how Canada’s smallest businesses will operate.

For the millions of freelancers, entrepreneurs, and microbusiness owners who keep our economy running, this Budget signals a clear shift. Canada is moving toward a fully digital, real-time, compliance-driven business environment.

That is not a bad thing. But it will take thoughtful policy and practical tools to make sure small business owners can keep up and thrive.

A new digital reality for small business

Ottawa has made its intentions clear. The future of business in Canada will be faster, cleaner, and more connected.

Government systems are being automated. Financial data will move seamlessly across platforms. Expectations around compliance will rise.

For small business owners, that means paperwork might get easier, but responsibility gets bigger. Entrepreneurs will need reliable, easy-to-use tools that make compliance simple, cash flow predictable, and payments frictionless.

That is the kind of change we think about every day at FreshBooks.

Open banking and real-time payments

After years of anticipation, Canada is finally legislating open banking, a major step toward secure, transparent, and efficient financial systems.

For small businesses, this means better data connections, faster insights, and less time chasing paperwork.

With Real-Time Rail launching in 2026, followed by write access that lets apps send payments directly, cash flow will finally start moving at the speed of business.

No more waiting days for money to clear. Just getting paid quickly, safely, and simply.

Automation and compliance: a tough but necessary shift

The federal government is also automating CRA systems. This new era of automation will reward those who run clean, organized books and challenge those who do not.

Digital transformation does not have to feel cold or bureaucratic. When done right, it empowers entrepreneurs to focus on their craft, their customers, and their growth.

That is exactly what we strive to make possible at FreshBooks: simple, human accounting that helps small business owners spend less time on compliance and more time doing what they love.

A small tax change, a bigger message

Budget 2025 also lowers the lowest personal income tax rate from 15% to 14%. It is a modest change, but it matters, especially for freelancers, contractors, and sole proprietors.

More importantly, it reinforces a message: Canada’s smallest businesses matter, and policy needs to reflect their reality.

Making Canada work for microbusiness

Small and microbusinesses make up nearly 98% of all firms in Canada. They are the backbone of our economy and the heart of our communities.

These businesses need tools and policies that are practical, accessible, and designed for how they actually work.

At FreshBooks, our mission is to make running a small business easier and to be a partner to entrepreneurs as Canada’s economy goes digital.

Open banking, real-time payments, and automated government systems are not just technical upgrades; they are the foundation of a fairer, faster, and simpler future for Canadian entrepreneurship.

If we get it right, the next decade could be the most productive, creative, and inclusive one yet for Canada’s smallest businesses.