Wave Accounting is an intuitive accounting ERP for small businesses, freelancers and entrepreneurs. Users also fancy the program’s user friendliness, documenting every task a user conducts and relaying accurate data. Although some users wish this solution had time tracking, job scheduling and recurring bills, the bulk of users find Wave Accounting a robust bookkeeping tool. Many businesses start investigating cloud-based accounting software after realizing they need a better method of invoicing and tracking payments than an online bank account. While all cloud-based accounting programs let you invoice customers, their features aren’t the same. Below is a chart comparing Xero and Wave that shows which they include.

Xero is one of the best tools on the market and, compared with other accounting solutions, offers high-level power for a very reasonable price. Wave’s best features are the dashboard, invoices, and services. The reporting section is a bit thin, but you can export all your information to run more advanced reports in other applications. To read further into Wave, check out our full-length Wave review.

Wave’s business accounting software is a great option for those who are just starting out or have simple accounting needs. In summary, Xero offers more advanced features across the board, including invoicing, expense tracking, time tracking, and inventory management. However, if you’re looking for a more basic accounting software option with unlimited invoicing, Wave may be the how to prepare a sales budget better choice. Xero’s accounting software is known for its robust features and sophisticated bookkeeping capabilities. It’s aimed at small and medium-sized businesses and offers tools for managing inventory costs, printing checks to pay bills, and processing payroll. Xero’s pricing plans start at £10 per month, but there are additional fees for payroll and other features.

• If you need basic expense-tracking functionality, Wave can be a solid option.
• If you’re just starting out or have simple accounting needs, Wave’s free accounting software may be all you need.
• Both tools are fantastic alternatives to cloud-based accounting software like QuickBooks Online, Zoho Books, and Freshbooks.
• It has instant synchronization and supports multiple currencies.
• They have a growing professional infrastructure of companies and tools that integrate with their platform.

If you run an e-commerce or physical products business, you shouldn’t use Wave. The platform is designed for service businesses and has minimal inventory management features. You can track the time spent on different tasks right within the platform, so timesheets become a thing of the past. This allows you to easily juxtapose the hours against the expenses and the payments, so that you can dynamically track the profitability of projects.

Xero vs Wave pricing

Gone are the days of needing to painstakingly enter all financial information into either paper or online sheets for your business. Accounting software increases efficiency by allowing companies to track their taxes, accounts payable, accounts receivable, payroll, and other details automatically. Xero is more advanced than Wave and should be used by any product-based business that requires more than entry-level reporting.

Wave lets you make unlimited bank and credit card connections to track your transactions. All debit card purchases automatically will get logged and categorized. You’ll be able to reconcile your accounts, set up automatic payments, and track your invoices.

• Users of the free software can’t get assistance from a live agent.
• Wave’s payroll feature streamlines the process of running payroll and paying your employees and contractors.
• Xero offers a range of customer support options, including phone support, email support, and live chat support.
• Because of its scalability and its extensive feature set, Xero is an excellent choice for companies who are expanding their operations.

Wave’s receipt management feature is more basic and only allows you to upload receipts manually. While Wave does offer Wave+ — with their own in-house bookkeepers and accountants — it is the least flexible solution. You’ll likely outgrow it as soon as you start hiring more than a couple of employees, as their feature set and reporting capabilities are the most limited. Xero’s reporting functionality, while more limited, is visually appealing and easier to use. You can view P&Ls, balance sheets, inventory tracking, and so on.

Wave Customer Support

However, setting up Xero for your business is easy because it follows a step-by-step process before landing on the dashboard. There’s enough white space on the web page in case you’re multitasking on one computer screen. For subsequent use, it’s easy to use the solution, and we think it’ll take less than a week for new users to understand the basics of the software. All FreshBooks plans, except for the highest-tier custom plan, come with one user. FreshBooks gives you six user roles to choose from, plus client access and project manager customization options.

Wave vs Xero online versions

The Wave payment processing feature allows users to accept credit card and ACH payments. Wave users can accept all types of payments via bank deposit, credit card, and Apple Pay. Xero lets you include sales tax in your invoices and estimates. You can create default sales taxes for customers, sales, and purchases.

Xero vs Sage Business Cloud

You can  view and reconcile your payroll transactions and easily access Gusto from the Gusto payroll tab in Xero. You’ll also be able to give your employees online access to their pay information. Xero provides over 50 reports, such as the Sales tax report, Profit and loss, and Journal report. You have the flexibility to customize your reports as required and save your frequently used reports for quick access.

Xero doesn’t offer the opportunity to call a representative directly for assistance. You can reach support by raising a case (similar to filing an IT ticket) on the Xero website. Includes tools that help automate the reconciliation process, along with a global search function; has a simple layout and a customizable dashboard. First, you have to put in the balance of the statement and set the dates that will be used for the adjustment.

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However, if you are comfortable with email support and prefer a simpler software, Wave may be a better fit. Wave’s mobile app is also available for iOS and Android devices and offers many of the same features as Xero’s app, such as invoicing and expense tracking. However, the app’s user interface is not as polished as Xero’s, and some users may find it less intuitive to use. If you have a business that requires inventory management, Xero is the better option. Xero offers inventory tracking, allowing you to keep track of stock levels and automatically update your accounts.

However, managing your accounts can be a daunting task, especially if you don’t have a background in accounting. If you are running a small business, you know how important it is to keep track of your finances. If you’re a freelancer or solopreneur and don’t have complex financial needs, this might work best for you. Another thing to consider is the learning curve and overall platform UI. As you’ll see, there are significant differences between each platform — no one platform is ideal for every use case.