Wave
Wave is a comprehensive financial management software providing small business owners with integrated tools for accounting, invoicing, payroll, and payment processing to simplify bookkeeping and improve cash flow management.
Xero
Xero is a cloud-based accounting software designed for small business owners and accountants to manage invoices, bank reconciliation, inventory, and payroll through a real-time financial dashboard.
Quick Comparison
| Feature | Wave | Xero |
|---|---|---|
| Website | waveapps.com | xero.com |
| Pricing Model | Freemium | Subscription |
| Starting Price | Free | $15/month |
| FREE Trial | ✘ No free trial | ✓ 30 days free trial |
| Free Plan | ✓ Has free plan | ✘ No free plan |
| Product Demo | ✘ No product demo | ✓ Request demo here |
| Deployment | ||
| Integrations | ||
| Target Users | ||
| Target Industries | ||
| Customer Count | 0 | 0 |
| Founded Year | 2010 | 2006 |
| Headquarters | Toronto, Canada | Wellington, New Zealand |
Overview
Wave
Wave is a specialized financial platform designed to help you manage your small business money without the complexity of traditional accounting suites. You can track your income and expenses, create professional invoices, and scan receipts directly from your phone. It solves the headache of manual bookkeeping by automatically syncing your bank transactions and categorizing them for tax season.
The platform is built specifically for freelancers, consultants, and businesses with only a few employees who need a clear view of their profitability. You can manage multiple businesses under one account and invite your accountant to collaborate on your books. While the core accounting features are free, you can add paid services like payroll or credit card processing as your business grows.
Xero
Xero is a cloud-based accounting platform that helps you take control of your small business finances from anywhere. Instead of manual data entry, you can automate your bank feeds so your transactions flow directly into your accounts for easy reconciliation. You can track your cash flow in real-time, send professional recurring invoices, and manage your bills to keep your suppliers happy.
The platform is built for collaboration, allowing you to share access with your accountant or bookkeeper so you are always looking at the same numbers. Whether you are managing inventory, processing payroll, or tracking project expenses, you can handle everything through a single dashboard. It simplifies complex tasks like tax preparation and financial reporting, giving you more time to focus on growing your business.
Overview
Wave Features
- Unlimited Invoicing Create and send professional, customized invoices to your clients in seconds and track their payment status in real-time.
- Automated Bookkeeping Connect your bank accounts to automatically import transactions and keep your books up to date without manual entry.
- Receipt Scanning Snap photos of your receipts with the mobile app to automatically capture expense details and stay organized for tax time.
- Online Payments Accept credit cards and bank transfers directly through your invoices so your customers can pay you with one click.
- Financial Reporting Generate instant profit and loss statements, balance sheets, and cash flow reports to understand your business health.
- Payroll Integration Pay your employees and contractors easily while Wave handles the tax filings and payments in supported regions.
Xero Features
- Bank Reconciliation. Connect your bank accounts to automatically import and categorize your transactions every day for an up-to-date view of your cash.
- Online Invoicing. Create and send professional invoices from your desktop or mobile device and let customers pay you instantly via credit card.
- Bill Management. Track and pay your bills on time to build better supplier relationships and get a clear overview of upcoming accounts payable.
- Expense Tracking. Capture costs by taking photos of receipts with your phone to automate expense claims and keep your records digital.
- Inventory Management. Keep track of what you have in stock, populate invoices with items, and monitor which products are your best sellers.
- Project Tracking. Monitor your project profit margins by tracking time and expenses against specific jobs to ensure every hour is billed.
Pricing Comparison
Wave Pricing
- Unlimited invoicing
- Unlimited bookkeeping
- Bank connection sync
- Unlimited receipt scanning
- Exportable accounting reports
- Everything in Starter, plus:
- Auto-merge and categorize receipts
- Automated bank transaction imports
- Unlimited additional users
- Discounted payment processing rates
Xero Pricing
- Send up to 20 invoices
- Enter up to 5 bills
- Reconcile bank transactions
- Capture receipts with Hubdoc
- Short-term cash flow snapshots
- Everything in Early, plus:
- Send unlimited invoices
- Enter unlimited bills
- Bulk reconcile bank transactions
- Standard business reporting
Pros & Cons
Wave
Pros
- Core accounting and invoicing features are completely free
- User interface is clean and easy to navigate
- Mobile app makes receipt scanning very convenient
- Setup process is quick for non-accountants
Cons
- Customer support is limited for free users
- Payroll features are only available in specific regions
- Lacks advanced inventory management for product sellers
Xero
Pros
- Clean and intuitive user interface
- Excellent mobile app for managing finances
- Seamless collaboration with your accountant
- Massive ecosystem of third-party app integrations
- Automated bank feeds save significant time
Cons
- Strict limits on the entry-level plan
- Multi-currency support requires the highest tier
- Customer support is primarily online-only
- Recent price increases for long-term users