Accounting software helps business owners understand how money flows in and out of their businesses. This can help you save time and make financial decisions quickly. Still, Wave’s free plan offers a good set of features and could be suitable for sole proprietors or smaller businesses with basic accounting needs. We also ensure that the software offers most standard accounting features and reports, awarding higher rankings to those that provide advanced services, like tax filing.
Xero has more advanced features, hundreds of integrations, and also supports unlimited users. However, Xero doesn’t have a free plan, with monthly subscriptions starting at $15. With limitations on Xero’s lowest-tier plans, users will have to upgrade to a more expensive option to take advantage of everything the software has to offer. The company also offers good customer support options, including an accounting guide, to help you learn to balance the books and use the software.
By providing feedback on how we can improve, you can earn gift cards and get early access to new features. On the other hand, QBO only supports up to 25 users on its most expensive plan. Additionally, QuickBooks does not have a free plan like Wave, with prices starting at $35/month. One of the most helpful features of Wave is its tax filing feature. Wave now integrates directly with H&R Block to help you file your taxes.
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Wave’s free pricing structure gives the software its appeal, but users that have larger businesses and require more advanced accounting features may find QBO or Xero to be the better fit. However, some features are noticeably missing, such as project management and budgeting, that are found with competing software options such as QuickBooks Online. The lack of these features brought our score in this category to 3 out of 5 stars.
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Check out our comparisons among these top three accounting software options to find the right fit for your business. Wave offers a decent number of support resources to customers, but the response times can be slow. Furthermore, customers using the free Starter plan will have limited support options. For a free software program, Wave boasts an impressive, robust feature set that rivals even some paid accounting software programs.
- QuickBooks Online also has hundreds of integrations, connecting your accounting solution with other small business software and apps.
- Some features are also only available on the paid Wave Pro plan.
- In our last review, we found these features especially appealing because they were all completely free with no artificial limits.
- Now, many standard features (such as automatic importing of bank transactions) are only available if you purchase a monthly or annual plan.
- 4.4 out of 5 stars based on user reviews collected by G2Crowd as of January 2024.
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However, there are a few features the software is still lacking. There’s no project management and limited time tracking, which rules the software out for a lot of businesses. Some automations are also only available on Wave’s paid plan.
Wave’s Starter plan still offers the basic features businesses with simple accounting needs can use to manage their finances. Pricing is transparent, there are a decent number of add-ons, and even the paid plan is pretty affordable. These factors contributed to our rating of 4.4/5 for Wave’s pricing and fees. Since you’re self-employed you don’t have the resources of a large company to make sure you’re paid properly and your books are balanced. Wave accounting software is the solution you need to take charge of your business and keep your hard-earned money safe.
It’s also great for Etsy shop owners and other eCommerce businesses using Wix, Squarespace, or WordPress. Wave has recently updated its pricing model to now include a paid plan. Now, many standard features (such as automatic importing of bank transactions) are only available if you purchase a monthly or annual plan. Additionally, the complete guide to selling general and administrative expense sganda your cost may rise with add-ons like payroll, payment processing, or professional bookkeeping services. Wave allows you to search transactions, design accounting reports and reconcile data across other Wave products.
We weigh each section differently to calculate the total star rating. Xero also doesn’t support multiple businesses, so pricing can add up quickly for some users. And it’s worth noting that while Xero has more features, the software also has a steeper learning curve than Wave. Wave holds its own against two of its biggest competitors, QuickBooks Online and Xero.