⚡ Quick Verdict:
- Pricing: Xero starts at $5.80/mo. Wave offers a free starter plan and a Pro plan at $19/mo.
- Best for: Xero for growing businesses that need multi-currency and inventory management. Wave for freelancers and solopreneurs who want free accounting software.
- Key difference: Xero offers 1,000+ integrations and project tracking. Wave offers free invoicing and built-in payroll processing.
- Our pick: Xero for most users — it scales better as your business grows.
Small business owners face a tough choice with accounting software.
Xero and Wave both promise to simplify your financial tasks.
But they target very different budgets and business sizes.
This comparison breaks down which tool fits your needs.
Overview
This Xero vs Wave comparison covers pricing plans, key features, and ease of use.
We also break down who each tool works best for.
Our sources include published specs, documentation, and user reviews.
By the end, you’ll know which cloud based accounting software fits your business.
What is Xero?
Xero is a cloud based accounting software for small businesses.
It helps businesses manage invoicing, bank reconciliations, and financial reporting.
Xero excels at multi-currency support across 160+ currencies.
Most users choose it for unlimited users on every plan.
Xero
Cloud based accounting with 1,000+ integrations. Xero lets you manage invoicing, bank feeds, and financial data from one dashboard. Ideal for growing businesses with multiple currencies.
Xero Pricing
Here’s what Xero costs in 2026. The xero pricing breaks down into three tiers. Many users consider it the best accounting software for growing teams. Xero’s top tier works like an established plan for businesses ready to scale.
| Plan | Price | Best For |
|---|---|---|
| Starter | $5.80 USD per month | Sole traders with basic needs |
| Standard | $10 USD per month | Small businesses needing unlimited invoices |
| Premium | $15 USD per month | Established businesses with multi-currency needs |
Pricing verified July 2026.
Free trial: Yes — 30 days, no credit card required. You can test Xero with full access before committing.
Money-back guarantee: Xero offers month-to-month billing with no long-term contracts. Cancel anytime.
📌 Note: All Xero plans include unlimited users at no extra xero cost. This is a major advantage over competitors that charge per user.
⚠️ Warning: Xero’s website may show different pricing plans (Early, Growing, Established) at higher price points. The CSV-verified prices above reflect the most recent data we have on file. Always check Xero’s official site for current rates.
Key Benefits of Xero
Here’s what makes Xero worth considering for your financial management:
- Unlimited Users: Every plan supports unlimited team members. You won’t pay extra as your team grows.
- Automatic Bank Feeds: Xero connects to your bank accounts and imports bank transactions daily. This cuts down on manual data entry.
- Multi-Currency: Handle transactions in over 160 multiple currencies. Xero updates exchange rates automatically.
- 1,000+ Integrations: Connect Xero to apps like Gusto for payroll, Hubdoc for receipt capture, and hundreds of other tools.
- Project Tracking: Track time and expenses by project. This is ideal for professional services businesses tracking billable hours.
- Customizable Reporting: Xero’s reporting features let you build custom financial reports for a clear view of your business’s financial health.
What Our Team Noticed
Our writer signed up for a Xero account and spent several days exploring the xero dashboard and core features. Here’s what stood out:
Xero Pros & Cons
✅ Pros
- Unlimited users on all plans saves money for teams
- Over 1,000 third-party integrations for custom workflows
- Multi-currency support in 160+ currencies for global teams
- Built-in project tracking for service-based businesses
- User friendly interface that avoids accounting jargon
❌ Cons
- No direct phone support — email only for customer support
- Chart of accounts page feels outdated
- Payroll requires a separate Gusto add-on at extra cost
- Starter plan limits you to up to five bills per month
What is Wave?
Wave is a free accounting software built for freelancers and small businesses.
It covers invoicing, expense tracking, and basic financial reports at no monthly cost.
Wave also offers built-in payroll processing and payment processing as paid add-ons.
Most small business owners choose it because the free starter plan covers core accounting features.
Wave
Free accounting and invoicing software for solopreneurs. Wave makes it easy to track expenses, send unlimited invoices, and accept online payments. Great for service-based businesses on a tight budget.
Wave Pricing
Wave organizes its services into two plans. Here’s what each tier costs.
| Plan | Price | Best For |
|---|---|---|
| Starter Plan | $0 | Freelancers needing basic accounting |
| Pro Plan | $19/month | Small businesses wanting auto bank imports |
Pricing verified July 2026.
Free trial: The free starter plan is free forever — not a trial. The paid pro plan may offer a trial period.
Money-back guarantee: Wave charges monthly with no long-term contracts. You can cancel the pro plan anytime.
📌 Note: Wave also offers wave payroll services ($40/month + $6 per active employee or independent contractors) and payment processing (2.9% + $0.60 per credit card transaction). These are additional costs beyond the base plan.
⚠️ Warning: The free version does not include auto import bank transactions or digital receipt capture. Those money management features require the paid pro plan. Some users also report glitches with bank connections on the free platform.
Key Benefits of Wave
Here’s what makes Wave worth considering for your personal finance and business needs:
- Free Core Accounting: The free plan includes unlimited invoices, expense tracking, and basic financial reports. No credit card needed.
- Unlimited Users: Wave allows multiple users to access the same account at no extra charge. Great for teams.
- Built-in Payroll: Wave integrates accounting and payroll in one platform. It handles tax filing and direct deposit for employees.
- Online Payments: Accept online payments via credit card and bank payments directly through your invoices. You can even accept apple pay.
- Receipt Scanning: The mobile app lets you scan receipts and sync them to your bookkeeping records automatically.
- Multiple Companies: Manage accounting for multiple companies under one Wave account. Ideal for owners with several businesses.
What Our Team Noticed
Our writer signed up for Wave and spent several days testing the invoicing features, expense tracking, and reporting dashboard. Here’s what stood out:
Wave Pros & Cons
✅ Pros
- Free plan covers invoicing, expenses, and basic reporting
- Clean and intuitive dashboard for beginners
- Built-in payroll with W2 and 1099 tax form generation
- Unlimited users and unlimited invoices on all plans
- Manage multiple businesses under one account
❌ Cons
- No inventory management or purchase orders
- Limited integrations compared to Xero or QuickBooks
- Customer support limited to help center and chatbot on free plan
- No built-in time tracking for billable hours
Feature Comparison
Let’s compare Xero and Wave across 9 key features. This section covers everything from online invoicing to cash flow management.
| Feature | Xero | Wave |
|---|---|---|
| Starting Price | $5.80/month | $0 (Free) |
| Free Plan | ❌ (30-day trial) | ✅ |
| Unlimited Invoices | Standard+ plans | ✅ All plans |
| Bank Reconciliation | ✅ Automatic | ✅ (Pro plan) |
| Inventory Management | ✅ Premium plan | ❌ |
| Multi-Currency | ✅ 160+ currencies | ❌ |
| Project Tracking | ✅ | ❌ |
| Built-in Payroll | ❌ (Gusto add-on) | ✅ (paid add-on) |
| Integrations | 1,000+ | Limited |
| Best For | Growing businesses | Freelancers |
1. Online Invoicing
Xero: Xero offers customizable invoice templates with your branding. You can set up recurring invoices and automated payment reminders. The early plan limits you to 20 invoices per month, but the Standard and Premium plans remove that cap.
Wave: Wave offers unlimited invoices on every plan, including the free one. You can customize invoices, set up recurring billing, and send automated payment reminders. Wave also lets you accept online payments directly through invoices.
2. Bank Reconciliation
Xero: Xero automates bank reconciliation by matching bank transactions with your accounting records in real time data. Xero makes it easy to sync transactions automatically through automatic bank feeds. This cuts down hours of manual data entry across all pricing plans.
Wave: Wave supports bank reconciliation, but auto import bank transactions is only available on the paid pro plan. On the free version, you’ll need to handle bank connections manually. Some users report occasional glitches with bank syncing.
3. Expense Tracking
Xero: Xero tracks expenses through connected bank accounts and Hubdoc integration. You can capture bills, categorize spending, and attach receipts to transactions. The platform also supports claiming expenses with detailed financial records.
Wave: Wave lets you track expenses and categorize them across your accounts. The mobile app supports receipt scanning for quick digital receipt capture. However, automated transaction syncing requires the paid plan.
4. Financial Reporting
Xero: Xero’s reporting features include customizable dashboards with real time data on your financial position. You can generate balance sheets, profit-and-loss statements, and cash flow reports. The customizable reporting tools give a clear picture of business performance.
Wave: Wave provides basic financial reports like balance sheets and income statements. The reporting works well for simple businesses, but it lacks the advanced customization options that Xero offers. You can filter by date range and export reports as needed.
5. Multi-Currency Support
Xero: Xero handles multiple currencies across 160+ options with automatic exchange rate updates. This makes Xero a strong choice for businesses with international clients or suppliers operating in multiple locations.
Wave: Wave does not offer multi-currency support. If your business operates internationally or bills in multiple currencies, Wave won’t handle that workflow. This is a major gap for expanding businesses.
⚠️ Warning: If you invoice clients in different currencies, Wave is not a fit. Xero is the clear choice for international businesses that need to manage inventory data and financial details across borders.
6. Inventory and Project Tracking
Xero: Xero lets you manage inventory with real-time stock tracking and purchase orders on higher-tier plans. The project tracking feature monitors time and expenses per project, making it great for professional services firms.
Wave: Wave does not include inventory management or project tracking. It lacks purchase order creation and time tracking for billable hours. Product-based businesses will find this a dealbreaker.
7. Mobile App
Xero: Xero’s mobile app is available on iOS and Android devices. It provides a simplified view of your xero dashboard, letting you send invoices and manage payments on the go. It mirrors most desktop features.
Wave: Wave’s mobile app also works on iOS and Android. It focuses on invoicing and receipt scanning. The app maintains the same clean interface as the desktop version, though it’s lighter on reporting features.
8. Tax and Compliance
Xero: Xero handles sales tax tracking and integrates with payroll through Gusto for W-9/1099 filings. The accounts receivable and accounts payable functionality helps businesses manage their financial position for tax season.
Wave: Wave handles tax filing through its built-in payroll service, including automated W2 and 1099 tax form generation. It covers payroll processing in 14 states with direct deposit for each independent contractor paid through the system.
9. Pricing and Cost
Let’s compare the pricing plans side by side.
| Feature | Xero | Wave |
|---|---|---|
| Free Plan | ❌ | ✅ ($0) |
| Entry Paid Plan | $5.80/month | $19/month (Pro) |
| Mid-Tier Plan | $10/month | N/A |
| Top-Tier Plan | $15/month | N/A |
| Payroll Add-on | Via Gusto ($40/mo + $6/person) | $40/mo + $6/person |
| Payment Processing | Via integrations | 2.9% + $0.60 per credit card transaction |
Xero: Xero’s paid plans start lower than Wave’s paid plan. At $5.80/month, you get basic accounting. The $15/month Premium plan unlocks multi-currency and inventory. For businesses that need advanced features, the xero cost is competitive.
Wave: Wave wins on upfront cost with its free plan. But the Pro plan at $19/month is pricier than Xero’s Standard plan. Wave also offers an annual option at a discounted rate of $190/year. Payment processing payouts may take a few business days. For freelancers who just need free accounting, Wave is the budget pick.
Different Scenarios
| If You Need… | Choose | Why |
|---|---|---|
| Zero upfront cost | Wave | Free starter plan |
| Multi-currency billing | Xero | 160+ currencies supported |
| Inventory tracking | Xero | Built-in stock management |
| Built-in payroll | Wave | Native payroll service |
| 1,000+ app integrations | Xero | Larger integration ecosystem |
| Beginner-friendly | Wave | Simpler interface |
💰 Your Budget
If budget is your top priority, Wave’s free plan is hard to beat. Xero’s plans start at $5.80/month but include features Wave charges extra for, like automatic bank feeds.
🔌 Your Tech Stack
Xero integrates with over 1,000 apps, including Gusto, Hubdoc, and Shopify. Wave integrates with fewer tools, so check that your critical apps connect before you commit.
📝 Your Business Type
Service-based freelancers who just need invoicing software should start with Wave. Product-based businesses that need to manage inventory and purchase orders should use Xero.
🎓 Your Experience Level
Both tools avoid heavy accounting jargon. Wave is slightly simpler for total beginners. Xero offers guided tutorials and Xero Central for online resources if you need to learn the platform.
🆓 Free Trials and Demos
We recommend wave for anyone who wants to start free. If you want to test Xero, use the 30-day free trial to explore all features before paying.
🛟 Support Options
Xero provides email-based customer support and extensive online resources through Xero Central. Wave’s help center and chatbot are available on the free plan, with priority support on the paid plan.
Switching Guide
Already using one of these tools? Here’s what to expect if you switch.
🔄 Switching from Xero to Wave?
✅ What you’ll gain:
- Free core accounting — no monthly subscription level needed
- Built-in payroll without needing a third-party add-on
- Accept credit card payments and bank payments through invoices
❌ What you’ll lose:
- Multi-currency support for international billing
- 1,000+ integrations and inventory management
- Built-in project tracking and advanced features
📋 How to switch:
- Export your financial data and client data from Xero as CSV files
- Create a free Wave account and connect your bank accounts
- Import your data migration files and verify your general ledger balances
🔄 Switching from Wave to Xero?
✅ What you’ll gain:
- Multi-currency support in 160+ currencies for business growth
- Inventory management and purchase orders
- 1,000+ integrations and project tracking
❌ What you’ll lose:
- Free accounting — you’ll start paying from $5.80/month
- Built-in payroll (Xero uses Gusto as an add-on)
- Native credit card payment processing through invoices
📋 How to switch:
- Export your Wave financial reports and bookkeeping records as CSV
- Sign up for a Xero 30-day trial and set up your Xero account
- Import your financial records and reconnect your bank accounts
What Our Review Didn’t Cover
This comparison focused on freelancers and small businesses. We didn’t evaluate enterprise-level features, API access, or how either tool handles high-volume transaction processing. Our observations are based on the July 2026 versions — features and pricing may change. If you manage 50+ users or need complex multi-entity accounting, your needs may differ from what we’ve covered.
Final Verdict
| Category | Winner |
|---|---|
| 💰 Pricing (Upfront Cost) | Wave |
| 🚀 Core Features | Xero |
| 📊 Financial Reporting | Xero |
| 🌍 Multi-Currency | Xero |
| 👶 Ease of Use | Wave |
| 🔌 Integrations | Xero |
| 📱 Mobile App | Tie |
| 🏆 Overall Winner | Xero |
🏆 WINNER: Xero
Xero wins 4 out of 7 categories.
Best for: Growing businesses, international teams, service-based companies needing project tracking
Xero and Wave serve different types of businesses. Xero is the stronger pick for established businesses that need scalable accounting software with deep integrations and multi-currency support. Wave is the better choice for solopreneurs and freelancers who want free accounting without a monthly fee.
If you need invoicing software and basic bookkeeping records without paying anything, we recommend Wave. If you need advanced features like inventory, project tracking, and 1,000+ integrations, we recommend Xero.
More of Xero Compared
Here’s how Xero stacks up against other accounting software options:
Xero wins on: Unlimited users on all plans, stronger multi-currency support, lower starting price
QuickBooks wins on: Built-in payroll in the US, larger user community, more accounting tutorials available
Xero vs FreshBooks
Xero wins on: Inventory management, 1,000+ integrations, unlimited users included
FreshBooks wins on: Time tracking built-in, simpler interface for solo freelancers, phone-based customer support
Xero vs Zoho Books
Xero wins on: Wider third-party integration library, stronger multi-currency handling, larger global presence
Zoho Books wins on: Lower pricing for small teams, built-in CRM connections, free plan for low-revenue businesses
More of Wave Compared
Here’s how Wave stacks up against other small business accounting software options:
Wave wins on: Free core accounting, no per-user charges, simpler setup for beginners
QuickBooks wins on: Advanced reporting and budgeting, larger integration library, built-in time tracking
Wave wins on: Free plan with unlimited invoicing, built-in payroll option, no monthly subscription for basics
FreshBooks wins on: Better time tracking for billable hours, stronger mobile app features, phone support available
Wave vs Sage
Wave wins on: Zero-cost entry point, easier setup for non-accountants, built-in payment processing
Sage wins on: Multi-entity accounting, stronger compliance features, better inventory management
Frequently Asked Questions
Is Xero better than Wave for small businesses?
Xero is better for growing businesses that need advanced features like multi-currency and inventory. Wave is better for freelancers who want free accounting.
Is Wave Accounting really free?
Yes. Wave’s free starter plan includes unlimited invoices and basic expense tracking. Payroll and payment processing cost extra.
How much does Xero cost per month?
Xero starts at $5.80/month for the Starter plan. The Standard plan is $10/month, and the Premium plan costs $15/month.
Can I use Xero or Wave without an accountant?
Yes. Both tools are designed for non-accountants. Xero offers guided tutorials, and Wave provides in-app guidance for common tasks.
Does Wave report to the IRS?
Wave’s payroll feature handles tax filing and generates W2 and 1099 forms. The accounting software itself doesn’t file taxes directly.
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