Wave Accounting Review 2023: Pros, Cons, Features

Wave Accounting Review 2023: Pros, Cons, Features

So, scroll down to find out if Wave is right for your business, or use the links on the right to jump to specific sections. FreshBooks is an affordable option for freelancers and small service-based businesses that operate mostly on the go. Moreover, you can integrate QuickBooks with hundreds of third-party tools available in the app marketplace.

wave accounting pros and cons

Regarding running payroll, both solutions offer add-on modules that incur an additional monthly fee. Finally, Wave connects to H&R Block, while QuickBooks connects to TurboTax. As a completely free income and expense wave accounting pros and cons tracking solution, Wave Accounting secured our vote for the cheapest Zoho Books alternative. Unlike other providers that offer solutions that place limits on users or billable clients, Wave’s solution is unlimited.

Wave vs QuickBooks

Indeed, it’s earned a place on our accounting software for small business best of list. While the invoicing platform is not easy to integrate with popular third-party payroll apps like Gusto or OnPay, https://personal-accounting.org/inventory-carrying-cost-definition/ Wave does have its own payroll software. Small businesses that plan to hire employees at some point might need to change accounting software systems in the future or upgrade to Wave Payroll.

For instance, Xero and FreshBooks’ native Gusto integrations ensure the accounting and payroll software sync with each other problem-free. Most accounting software was designed with non-accountant business owners in mind, which means setup should be fairly straightforward. Still, some accounting programs are more user-friendly than others, and Wave Accounting is among the easiest for first-time business owners to configure. Wave’s invoices are easy to customize with your business’s logo, colors and contact information (Figure A). It requires no contract, features no hidden fees, and businesses don’t even need to use a credit card to get started.

QuickBooks Online’s stand-out features

That said, businesses on a budget can use Wave Accounting for free to manage their bookkeeping and business finances. Like Wave, FreshBooks’ unlimited customizable invoices make it a great solution for freelancers with service-based businesses. Both Wave and FreshBooks let you schedule automated recurring invoices, accept online payments through invoices and set up payment due date reminders. Both software tools also have notably user-friendly invoice templates that are simple to customize.

wave accounting pros and cons

We don’t think Wave is the best choice for growing or mid-market organizations. Because Wave is free software, it does not offer the intricate capabilities of a paid platform. Additionally, it’s limited in integrations, so it does not provide the scalability for more popular financial software like QuickBooks. However, you can choose one of two payroll packages for an additional monthly fee. Payroll for Tax Service States is $40 per month, and payroll for Self Service States is $20. For both packages, there is an additional $6 fee per active employee or independent contractor paid.

Compare Wave with top competitors

The Wave accounting system comes with a wide range of features, such as invoicing, expense tracking, and bookkeeping. With Wave, you can also accept payments, run payroll, and get access to advisors. If you want professional help to get your business up and running, you can access bookkeeping experts through Wave for $149 per month.

  • Its cloud-based software tool is designed with small businesses in mind and includes features that can help smaller organizations streamline their accounting workflows.
  • If Wave isn’t a good fit for you, read through our article on the year’s best free accounting software.
  • The software design and intuitive interface make Wave simple to set up and easy to use, even for those with little previous accounting experience.

The great news is there’s a free app called Wave to help you handle bookkeeping. Xero’s starting price is half the price of QuickBooks, which makes Xero a more suitable Wave alternative for freelancers on a budget. Wave and Xero also have some crucial, unique features in common, such as unlimited users, unlimited bank connections and optional invoice-based payment acceptance. It’s useful that you can connect to a Wave customer service representative over live chat without navigating away from your accounting dashboard. However, live chat is only available during Wave’s typical business hours, and apart from the chat, your only other support option is email; Wave Accounting doesn’t offer any U.S.-based phone support. Most popular accounting tools have at least a handful of built-in app integrations that make connecting with third-party services as painless as possible.

Isobel O’Sullivan (BSc) is a senior writer at Tech.co with over four years of experience covering business and technology news. Since studying Digital Anthropology at University College London (UCL), she’s been a regular contributor to Market Finance’s blog and has also worked as a freelance tech researcher. Isobel’s always up to date with the topics in employment and data security and has a specialist focus on POS and VoIP systems. You can check out our comparison table to see how Wave compares against the top accountancy providers, too.

Wave even lets you categorize transactions in bulk as well as merge duplicate transactions, allowing you to streamline the process. Wave’s invoicing is free and unlimited, with three customizable templates and a user-friendly interface, putting it on par with some of the best invoicing software solutions for small businesses. Other capabilities include recurring invoicing and the option to let repeat clients opt into automatic credit card billing. Wave Accounting is ideal for micro businesses with less than 10 employees, contractors, freelancers and other service-based businesses on a budget.

What many point out is that it is easy to automate bookkeeping and billing with Wave, as the software automatically syncs accounting and invoicing. In addition, users are very pleased with the fact that invoicing features are unlimited and customizable. Wave’s double-entry accounting system is designed to help you keep track of your cash flow and manage your business finances. With Wave, you can connect your bank account and credit cards, track expenses, and run reports.

wave accounting pros and cons

Wave Accounting Review 2023: Pros, Cons, Features
Wave Accounting Review 2023: Pros, Cons, Features
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