Read our review of QuickBooks Online to see why it’s our overall best small business accounting software. While Wave is probably the most comprehensive QuickBooks alternative, it isn’t the only one. ZipBooks, Odoo, and CloudBooks are all good options, as are the other free income tax calculator software options on our list of the year’s best free accounting software. Wave used to offer a receipt-scanning app for iOS users—but that offering recently vanished. Now, you’ll use your phone to photograph physical receipts, then upload them to your Wave account.

• Let’s dive in deep and look in depth at both products to decide which platform takes the cake when it comes to features and functionalities.
• One of Wave’s best features is its invoicing capability, particularly its custom invoices.
• Simply choose one of the options displayed on the screen, and you’re immediately guided through the entire setup process.
• Next is the Plus option, which is 35 dollars each month, with support for up to five users.
• Your billing and invoicing processes are also more streamlined and bills are processed and sent out in a timely manner.
• That said, we developed an internal case study to carefully assess all the articles we review, compare, and recommend.

There aren’t heftier plans or upgrade options that could accommodate larger companies. Xero is the most similar to QuickBooks Online in terms of scalability and feature set. It supports an unlimited number of users and has a simple layout that some business owners might find less overwhelming than QuickBooks Online.

You plan on scaling your business soon

QuickBooks Online is the more comprehensive of the two solutions as it offers more features. For example, it allows users to manage their business inventory, and carry out job costing, whereas Wave doesn’t. When you create your first invoice in Wave, you’re guided to create a template first. The platform has a few template options to choose from, and even has the option to add branding like your logo and an accent color, which I thought was a nice touch. To compare Wave and QuickBooks and derive our star ratings, we compared each company’s pricing, features, customer service, ease of use, and overall functionality for small-business owners, including freelancers.

• For example, it allows users to manage their business inventory, and carry out job costing, whereas Wave doesn’t.
• Automated billing, invoicing and other processes also help improve project and client management.
• Even better, its free software has features many other accounting solutions charge extra for.
• As for sales tax, say goodbye to manually calculating it with each sale, QuickBooks will customize the tax rate automatically based on what you sell, where you are, and where you ship.
• If you are a freelancer or marketer with no permanent staff or inventory, other accounting tools work just fine (and are cheaper).
• Wave is an up-and-coming contender in invoicing and payments software for small businesses.

Wave’s feature set is limited to bank reconciliation tools, income and expense tracking, invoicing, basic reporting, and a mobile app for sending invoices on the go. This might be more than enough for freelancers and very small service-based businesses. Larger businesses, however, might prefer QuickBooks Online for its transaction tracking tags for more in-depth reporting, custom bank rules for easier reconciling and inventory management.

While it lacks the bells and whistles offered by QuickBooks, its feature set is nothing to be snubbed at, and the tool is completely free to use, making it perfect for users who are looking to keep costs low. QuickBooks is a comprehensive accountancy tool that can help you out with just about any function imaginable, from batch importing and payroll processing to KPI tracking. This makes it better suited to businesses with complex accountancy requirements than Wave, which lacks some basic features like stock tracking and budgeting. Both QuickBooks and Wave excel in different areas, so scroll down to find out how the two solutions compare when it comes to accountancy features, advanced capabilities, affordability, and support. You can also use our comparison guide to see how the providers fare against their competition, or check out our table below. It enables you to import the customers and much other information into Wave when you are from other applications utilizing a CSV file.

Wave vs QuickBooks features

You can set up recurring invoices, too, if you have repeat business from some customers. Many users find Wave to be more user-friendly and easier to use than QuickBooks Online due to its simplicity and lack of advanced features. Meanwhile, those who aren’t that satisfied with Wave complained that customer service is limited and that the self-help documents are not always sufficient. Others mentioned that its reporting features are not as robust as those in QuickBooks Online.

Summary: when to choose Wave vs QuickBooks

You’ll pay 2.9% plus $0.60 per transaction for Visa, Mastercard and Discover; 3.4% plus $0.60 per transaction for American Express; and 1% per transaction for ACH transfer from your client’s bank account. The platform’s design is intuitive, so it’s easy for anyone to set up and use. Create customized invoices and estimate templates that align with your brand and save information about clients and services so you don’t have to re-enter the same information over and over each time you invoice.

What is the main difference between Wave and QuickBooks Online?

Professional bookkeepers and accountants we interviewed were very complimentary of QuickBooks Online, emphasizing the platform’s capabilities and power. However, all of the small business owners that we spoke with reported that it’s not as user-friendly as other options. QuickBooks Online is the undeniable leader in accounting software for small businesses, so almost all small businesses should consider purchasing a plan.

While both Wave and QuickBooks are apt at providing accounting features, each has its own strengths that make it better for certain businesses than others. At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services. As far as small-business financial management tools go, Wave and QuickBooks both have their strengths and weaknesses.

Wave’s 1% fee for ACH payments and 2.9% + $0.30 fee for credit card charges meets the industry standard. And since Wave doesn’t charge a base fee, the transaction fee is all you’ll ever pay when you use Wave. Wave offers its own in-house payroll and payment processing, but it doesn’t integrate with third-party apps. This can be limiting for small businesses that use separate software for inventory management, customer relationship management or payroll. Additionally, it doesn’t integrate with card readers for in-person payments, which rules it out as an option for many retail stores and pop-up shops.

Wave Accounting plans and pricing 2022

Many small firms choose the Plus subscription, which includes up to five users as well as additional features like inventory, project accounting, and limitless reports. Strong invoicing feature competes with that of paid products; app lets users send invoices on the go; offers significantly fewer reports than competitors; no inventory tracking. Wave and QuickBooks Online browser-based apps offer tools for invoicing, expense tracking, and real-time reports. However, if we have to choose only one, QuickBooks Online’s broader range of features and more advanced functionalities gives it a slight edge over its competitor. However, QuickBooks Online has one of the highest starting prices of any bookkeeping and accounting software product. Business owners — including and especially freelancers — will likely find that Wave Accounting’s comprehensive tools meet their financial management needs just as well as QuickBooks.

Or, if you don’t need as many features as QuickBooks Online provides, there’s QuickBooks Self-Employed. Its simple $15-a-month plan lets you send simple invoices, track mileage, and get quarterly tax estimates to make end-of-year tax payments easier. Both QuickBooks Online and Wave Accounting have highly rated mobile apps. With both accounting providers, iOS and Android users can accept payments, access funds, create and send invoices, and check income and expenses on the go. So, Wave was created for micro-businesses and sole proprietors, which helps them easily recording their finances. If you want to accept online payments, it only requires you to pay the normal transaction fees by using any other application.