Wave vs Xero
Last updated: 2026-08-18
Free accounting vs paid accounting — is Wave enough or do you need Xero? — pricing, features, and our verdict.
Feature Comparison
| Feature | popular Wave | best Xero |
|---|---|---|
| Price from | $0 (Free) | $15/mo |
| Free trial | Free accounting software (no trial — permanently free) | 30-day free trial |
| Best for | Freelancers and micro businesses needing free accounting | International small business accounting |
| Free plan | Yes — accounting, invoicing, receipts | ✗ |
| Starting paid price | Payroll from $40/mo, Payments from 2.9% + 30¢ | — |
| Invoicing | Unlimited (free) | 5/mo (Starter), unlimited (Standard+) |
| Expense tracking | ✓ | — |
| Receipt scanning | ✓ | — |
| Bank sync | ✓ | — |
| Double-entry accounting | ✗ | — |
| Payroll | Add-on ($40/mo+) | Via Gusto (US), built-in (AU/UK/NZ) |
| Integrations | Limited (PayPal, Stripe, Etsy) | 1,000+ apps |
| Support | Email + chat (no phone) | Email + 24/7 chat |
| Starting price | — | $15/mo (Starter), $42/mo (Standard), $78/mo (Premium) |
| Bank reconciliation | — | ✓ |
| Multi-currency | — | Premium plan |
| Inventory | — | Standard plan+ |
| API access | — | ✓ |
Wave Pros & Cons
Pros
- Genuinely free — invoicing, expenses, reports, no monthly fee
- Unlimited invoices and estimates
- Receipt scanning with mobile app
- Bank account and credit card connections for automatic imports
- Good for freelancers just starting out
Cons
- No inventory management
- No double-entry accounting (single-entry only)
- Limited reporting compared to QuickBooks/Xero
- Payroll and payment processing cost extra
- Customer support is limited (no phone support)
Xero Pros & Cons
Pros
- Better international support than QuickBooks (multi-currency, VAT, GST)
- More affordable — $15/mo (Starter) vs $38/mo (QuickBooks)
- Excellent bank reconciliation (auto-matching)
- Strong inventory management (on Standard plan+)
- Large app marketplace (1,000+ integrations)
- Cleaner, more modern interface than QuickBooks
Cons
- US payroll not built-in (needs third-party via Gusto)
- Fewer US bank integrations than QuickBooks
- Starter plan limits (5 invoices/bills per month, 20 bank transactions)
- Inventory management requires Standard plan ($42/mo)+
- No built-in time tracking (integrates with third-party)
Final Verdict
Both Wave and Xero are solid choices in the Accounting space. The right pick depends on your budget, team size, and specific feature needs. We recommend trying both via their free plans or trials before committing.
Our pick: Xero
Frequently Asked Questions
Which is better for small businesses: Wave or Xero?
For small businesses, the better choice depends on your budget and specific needs. Xero generally offers better value for money, while Wave has more advanced features for growing teams.
Do Wave and Xero offer free trials?
Yes, both platforms offer ways to try before buying. Free accounting software (no trial — permanently free) offers a trial, and 30-day free trial also offers a trial. We recommend trying both before committing.
Can I switch from Wave to Xero (or vice versa)?
Yes, most platforms offer data export tools. Contact lists, settings, and historical data can usually be migrated, though some manual setup will be required. Check each platform's migration documentation before switching.