Wave vs Xero
Features, use cases, pros and cons, and pricing side by side — and which one to pick.
Quick verdict: Pick Wave if you're a freelancer or solopreneur who wants free, simple accounting; pick Xero if you need automation, 1,000+ integrations, and room to scale.
Best for: Freelancers who want to pay themselves and any staff with confidence, Solopreneurs who want tidy books going into tax time
Read the full Wave reviewBest for: Small businesses that want invoicing, bills, payroll, and payments connected in one place, US owners who need W-9, 1099, and sales tax handling built in
Read the full Xero reviewCommission may apply at no extra cost
Wave vs Xero: features compared
Compare key features side by side
Feature Comparison Summary
Which should you choose?
Choose Wave if
- You want genuinely free accounting software with no time limit
- You're a freelancer or solopreneur with straightforward bookkeeping needs
Choose Xero if
- You need 1,000+ app integrations or the JAX AI assistant
- You're scaling with multi-currency sales or project tracking
- You want US compliance built in, like W-9s and 1099s
Wave vs Xero: pros and cons
Wave
Wave bundles accounting, invoicing, and payments in one place, backed by a genuinely free Starter plan and clearly published pricing. Card fees on every payment, Plaid-dependent bank imports, and weekday-only support are the main trade-offs. Overall, it's a solid, recommendable pick for freelancers and solopreneurs who want tidy books without a big monthly bill.
Pros
- The Starter plan is free indefinitely, not a time-limited trial, and still includes unlimited invoices, estimates, bills, and bookkeeping records
- Pro automates the tedious parts of bookkeeping — bank transactions are imported, merged, and categorized via Plaid, and receipts are captured digitally without limits
- Wave Advisors puts a dedicated bookkeeper on your account who prepares monthly financial statements and handles onboarding from software like FreshBooks
Cons
- Every card payment carries a processing fee—2.9% + $0.60 on Starter (3.4% + $0.60 for Amex)—which adds up for businesses with high card volume
- Bank auto-import runs through Plaid, and not every financial institution is supported, so a working connection isn't guaranteed
- The Pro subscription fee is per business, not per owner, so running a second business means paying for a second subscription
Xero pulls invoicing, bills, bank reconciliation, and cash flow forecasting into one dashboard, with a JAX AI assistant, 1,000+ app integrations, and no per-user fees. Surveyed users report saving about five hours a week on bills, though prices jump tenfold after six months and there's no free trial. Overall, it's a solid pick for small businesses that budget for full-price renewal.
Pros
- Automated bill entry and bank reconciliation save surveyed small businesses about five hours a week on bills, with Smart Document Capture pulling receipts and bills directly into Xero
- The JAX AI assistant answers questions about cash flow and profit trends instantly and can create invoices and quotes through Xero, WhatsApp, SMS, or email
- No per-user fees — one subscription covers your whole team, which keeps costs predictable as headcount grows
Cons
- Introductory pricing jumps sharply after 6 months — from $2.50 to $25, $5.50 to $55, and $9 to $90 per month — which can catch budget-sensitive buyers off guard
- The Early plan caps you at 20 invoices and 5 bills per month, and app-initiated transactions count toward the invoice limit, so high-volume sellers outgrow it quickly
- Free payments cover standard domestic ACH only; online invoice payments, cross-border, and international bill payments carry extra fees
Wave and Xero in detail
Wave
Wave is all-in-one small business software that combines accounting, invoicing, payments, and payroll in a single system. It's built for people who didn't train as accountants—freelancers, solopreneurs, contractors, and consultants. You can manage your books, send professional invoices, accept payments, and check reports from a desktop or mobile app. More than 350,000 small businesses use Wave, and it holds a 4.5-star Google rating.
Standout features
- Invoicing and Estimates Without Limits
- Automated Bank Transaction Import (Pro)
- Built-In Payment Processing
- Receipt Capture and Expense Tracking (Pro)
- Automated Late Payment Reminders (Pro)
Use cases
- Freelancers: pay yourself with confidence
- Contractors: invoice and estimate in minutes
- Consultants: put repeat billing on autopilot
- Busy owners: hand off the books
Xero
Xero is online accounting software for small businesses, used by 5 million customers worldwide. It covers quotes, invoices, bills, bank reconciliation, sales tax, and reporting. US plans include W-9 and 1099 management and online bill payments with free standard ACH. It suits owners who want organized finances without heavy admin, plus the accountants and bookkeepers who support them.
Standout features
- Ask JAX, skip the admin
- Get paid without the chase
- Bills and receipts, handled
- See your numbers, live
- Easy from day one
Use cases
- Freelancers: invoice without the busywork
- Small teams: tame the bill pile
- Owners: plan cash flow with confidence
- Scaling businesses: go global and deeper
Pricing compared
List prices from each vendor's pricing page, before taxes and add-ons. Costs are per month.
| Pricing compared | Wave | Xero |
|---|---|---|
| From (cheapest paid plan) | $19/mo Pro Plan | $25/mo Early |
| Free plan | Yes 2.9% + $0.60 per credit card transaction; 3.4% + $0.60 per Amex transaction | No |
| Free trial | Not stated | Not stated |
| Money-back guarantee | Not stated | Not stated |
| Annual billing savings | Up to 17% | — |
| Pricing model | Flat price | Flat price |
| Cost for 1 user | FreeCheaper Starter Plan plan, billed monthly | $25/mo Early plan, billed monthly |
| Cost for 5 users | $19/mo Pro Plan plan, billed monthly · price per account (user limit not stated) | $25/mo Early plan, billed monthly · price per account (user limit not stated) |
| Cost for 10 users | $19/mo Pro Plan plan, billed monthly · price per account (user limit not stated) | $25/mo Early plan, billed monthly · price per account (user limit not stated) |
| Cost for 25 users | $19/mo Pro Plan plan, billed monthly · price per account (user limit not stated) | $25/mo Early plan, billed monthly · price per account (user limit not stated) |
| Plans | 3 | 3 |
| Prices checked | Checked Oct 12, 2026 | Vendor page checked Oct 13, 2026 |
| Price history | Tracking prices since Oct 1, 2026. No price change detected yet. | Tracking prices since Oct 1, 2026. No price change detected yet. |
- Cheapest plan that fits each team size. Per-user plans are multiplied by the number of users (respecting stated minimums and seat packs). Plans that include some users cost their base price plus the extra-user price for each user beyond those included. Flat-priced plans with no stated user limit are counted as one licence per user.
Cheaper for your team size
For 1 user (billed monthly), Wave costs $0/mo vs Xero at $25/mo.
- Only Wave has a free plan.
Computed from published list prices on the dates shown. Excludes taxes, add-ons and promotions.
More comparisons
Frequently Asked Questions
Is Wave actually free?
Yes. The Starter plan is free forever, with unlimited invoices, estimates, bills, and bookkeeping records. You'll only pay per-transaction card fees if you accept online payments.