Xero today released its quarterly Xero Small Business Insights (XSBI) report, a snapshot of the health of the Canadian small business (SMB) sector based on actual aggregated and anonymized data from 12,000 Canadian small businesses using Xero, including sales performance, late payments, and time-to-be-paid.
The latest XSBI data shows Canadian small businesses had one of their better quarters in recent times, with sales up 2.0% year-over-year in the September quarter and four consecutive months of growth. While results remain well below the historical average, they offer early signs of recovery after a difficult 18 months, even as US trade tensions and elevated fuel prices continue to weigh on conditions. Payment times were largely unchanged at 10.5 days late on average (10.8 days in the June quarter), and Canada continues to have the longest late payment times of the countries tracked by XSBI.
Four consecutive months of sales growth
Canadian small business sales rose 2.0% year-over-year (y/y) in the September quarter, following an upwardly revised 0.4% y/y rise in the June quarter. It is the first time sales have grown for four consecutive months since April to July 2025.
Monthly results showed a 3.0% y/y rise in July, a 2.5% y/y rise in August and a 0.5% y/y rise in September. While these results remain well below the historical average of 4.0% y/y sales growth, they follow many months of declining sales and point to some improvement in performance.
Payment times little changed
Canadian small businesses were paid on average 10.5 days late in the September quarter, similar to the June quarter (10.8 days). Time to be paid, the length of time from when an invoice was issued to when it was paid, was 28.4 days, compared to 28.2 days in the June quarter, largely due to a 29.8-day result in September. Canada continues to have the longest late payment times of the countries tracked in XSBI.
Regional picture: Alberta leads as B.C. lags
Sales results for the September quarter were:
- Alberta (+5.9% y/y) was the best performing of the regions tracked, benefitting most from higher global oil prices.
- Ontario (+2.2% y/y) improved from the June quarter (+0.8% y/y), and could have been higher if not for a 1.7% y/y decline in September.
- The Maritime Provinces (-1.4% y/y) had lower sales than a year ago, largely due to a 9.5% y/y fall in July.
- British Columbia (-2.6% y/y) recorded lower sales than a year ago in every month of the quarter. However, B.C. remains the fastest place for small businesses to be paid (24.6 days).
The other provincial results on time to be paid for the September quarter were 28.0 days (Alberta), 28.9 days (Ontario) and 33.7 days (Maritime Provinces). Alberta’s result was pushed up by a rise to 34.1 days in September, its longest payment time since August 2023, which may be revised as more data becomes available.
Trade tensions hit exporter confidence hardest
The impact of renewed US trade tensions is falling hardest on small businesses that trade internationally. The Canadian Federation of Independent Business (CFIB) September Business Barometer found no statistical difference in 12-month confidence between exporters, importers and non-traders in September 2024. By September 2026, exporters reported a confidence score of 38.6 points, compared to 43.5 points for importers and 52.2 points for businesses not active internationally.
To access the latest data, visit xero.com/xerosbi.
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This entry was posted on October 29, 2026 at 3:44 pm and is filed under Commentary with tags Xero. You can follow any responses to this entry through the RSS 2.0 feed.
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Canadian small business sales up for four months straight, a glimmer of hope after a tough 18 months
Xero today released its quarterly Xero Small Business Insights (XSBI) report, a snapshot of the health of the Canadian small business (SMB) sector based on actual aggregated and anonymized data from 12,000 Canadian small businesses using Xero, including sales performance, late payments, and time-to-be-paid.
The latest XSBI data shows Canadian small businesses had one of their better quarters in recent times, with sales up 2.0% year-over-year in the September quarter and four consecutive months of growth. While results remain well below the historical average, they offer early signs of recovery after a difficult 18 months, even as US trade tensions and elevated fuel prices continue to weigh on conditions. Payment times were largely unchanged at 10.5 days late on average (10.8 days in the June quarter), and Canada continues to have the longest late payment times of the countries tracked by XSBI.
Four consecutive months of sales growth
Canadian small business sales rose 2.0% year-over-year (y/y) in the September quarter, following an upwardly revised 0.4% y/y rise in the June quarter. It is the first time sales have grown for four consecutive months since April to July 2025.
Monthly results showed a 3.0% y/y rise in July, a 2.5% y/y rise in August and a 0.5% y/y rise in September. While these results remain well below the historical average of 4.0% y/y sales growth, they follow many months of declining sales and point to some improvement in performance.
Payment times little changed
Canadian small businesses were paid on average 10.5 days late in the September quarter, similar to the June quarter (10.8 days). Time to be paid, the length of time from when an invoice was issued to when it was paid, was 28.4 days, compared to 28.2 days in the June quarter, largely due to a 29.8-day result in September. Canada continues to have the longest late payment times of the countries tracked in XSBI.
Regional picture: Alberta leads as B.C. lags
Sales results for the September quarter were:
The other provincial results on time to be paid for the September quarter were 28.0 days (Alberta), 28.9 days (Ontario) and 33.7 days (Maritime Provinces). Alberta’s result was pushed up by a rise to 34.1 days in September, its longest payment time since August 2023, which may be revised as more data becomes available.
Trade tensions hit exporter confidence hardest
The impact of renewed US trade tensions is falling hardest on small businesses that trade internationally. The Canadian Federation of Independent Business (CFIB) September Business Barometer found no statistical difference in 12-month confidence between exporters, importers and non-traders in September 2024. By September 2026, exporters reported a confidence score of 38.6 points, compared to 43.5 points for importers and 52.2 points for businesses not active internationally.
To access the latest data, visit xero.com/xerosbi.
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This entry was posted on October 29, 2026 at 3:44 pm and is filed under Commentary with tags Xero. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.