Should I use online accounting software in Canada?

My part-time bookkeeper and I are currently reviewing Xero for accounting. I like the online aspect of being able to enter and view data online (my bookkeeper works from home). The cost seems reasonable, but I'm concerned about other costs cropping up because I'm using something "different". My financial firm says that it should be fine for their Y/E if I can export CSV files, which Xero does.

Does anyone have any experience using Xero (or another online accounting package) in Canada? Is it a cost/time saver or does it have hidden costs elsewhere (e.g. efficiency)?

Short answer: Yes. I would, and I do.

Long answer:

We're using Freshbooks for a couple of different projects, and have had nothing but good things said to us from our bookkeepers and accountants.

If you're using Xero, you may also want to check out http://waveaccounting.com/ - it's based out of Toronto (as is Freshbooks) and they're doing some interesting things in terms of service offering. Both Freshbooks and Wave are also making big strides into various integration projects, which opens the door to having your accounting properly linked into your human resources, sub-contractors, time-tracking, etc.