From generating, sending, and tracking invoices to managing your payroll and preparing you for tax season, modern accounting software is your financial Swiss Army knife. These platforms often go beyond the basics to offer real-time expense tracking by linking directly to your bank accounts or enabling you to snap pictures of your receipts with a mobile app. 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.

As far as accounting features go, few software options can compare to Xero. Regardless of which plan you choose, all users get access to inventory management, accounts payable, and other accounting features. Xero’s well-developed contact management feature is especially worth checking out.

Here’s a breakdown of how Xero and Wave differ in terms of its features. To get the most out of Xero, we recommend upgrading to Xero’s Growing or Established plans, both of which are significantly more expensive than Wave.

1. Wave has developed a different model for making revenue instead of the classical monthly fees.
2. There’s also no built-in payment processing, although third-party options like Stripe, Square, and Payroll are supported.
3. With the more advanced paid plan, users get the option to add unlimited users, assign custom permissions, automate bank transaction imports and accept payments at a lower transaction fee.
4. Both have received a solid number of rave reviews across the internet, making it difficult to decide which is truly the better software.

Wave Accounting pricing and plans

Xero also offers 55+ reports, which far exceeds the 12 offered by Wave. Xero also outperforms Wave in terms of its integrations, with over 1,000 available for download in the Xero app store. Join the thousands of people like you already growing their businesses and knowledge with our team of experts. We deliver timely updates, interesting insights, and exclusive promos to your inbox.

We surface key elements every prospective buyer should review and understand prior to selecting a software provider. 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.

Negotiation & Contract Experience

One of the areas where Wave falls a bit short is in terms of its features. While it does offer a well-rounded set of features, especially at this low price point, it doesn’t include everything you’d find with bigger competitors like Xero. Multiview Financials’ ERP provides a single point of truth within your organization, enabling visibility across divisional, regional, or product line silos. It goes beyond traditional finance and accounting to add the sophisticated capabilities that today’s complex organizations demand.

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.

Plan to Renew

But perhaps what is most appealing about Wave is that its available at no cost. While you may have to pay a modest monthly fee for some automations, the free plan is pretty solid — even supporting multiple businesses and users. User-friendly interfaces, complete with dashboards and drag-and-drop features, make these software solutions accessible even for novices. Wave, on the other hand, is designed with small find transposition errors before they turn into a bigger issue businesses in mind. The software is easy to use and boasts standard features such as invoicing, contact management, and personal and business expense tracking.

Plus, while Zapier has a free plan option, its paid plans work better for most businesses. However, Wave’s unlimited invoices will work better for small businesses, freelancers and contractors that send more than 20 invoices a month. The accurate build-in time tracking also helps with timely and correct invoicing. Inventory management is quite a ride, and Xero helps you make the process easier. You can keep track of stock, as well as learn which are your bestselling and most profitable products and services. It also streamlines the quoting, invoicing and ordering process for your stock.