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Freelancers · head to head

Wave vs Xero

Wave logo

Wave

Freelancers

Financial software for small businesses

From
Free
Rated
-
Full reviewWebsite
Xero logo

Xero

All industries

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite

The short version

  • Only Wave has a free tier, so it costs nothing to try first.
  • Each has a real cost: Wave automatic bank transaction import and receipt scanning require the Pro plan at $19 a month; Xero the Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • They diverge on capability: Wave covers Double-entry accounting, Xero covers Bill payment.

Where they differ

Only the attributes on which Wave and Xero actually diverge.

Attributes where Wave and Xero differ
AttributeWaveXero
Starting priceFree$13/month
Pricing modelfreemiumsubscription
Free tierYesNo
PlatformsWeb, Ios, AndroidWeb, Ios, Android, Api
CategoryFreelancersAll industries
Founded20102006

Identical on both: user rating (Not yet rated).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Wave

  • Double-entry accounting
  • Expense tracking
  • Receipt scanning
  • Multi-currency
  • Sales tax tracking
  • Etsy
  • Shoeboxed
  • PCI compliant

Only in Xero

  • Bill payment
  • Expense claims
  • Inventory tracking
  • Project tracking
  • Mobile apps
  • Square
  • Shopify
  • HubSpot

Both cover

  • Invoicing
  • Financial reporting
  • Bank reconciliation
  • PayPal
  • Stripe
  • 2FA

What people use each for

The jobs each tool is most often brought in to do.

Wave

  • Invoicing and bookkeeping for very small businesses and freelancersnot Xero
  • Accepting card payments against issued invoicesnot Xero

Xero

  • Small business bookkeeping, invoicing and bank reconciliationnot Wave
  • Bill payment and purchase order managementnot Wave
  • Sharing books with an accountant or bookkeepernot Wave

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Wave

  • Automatic bank transaction import and receipt scanning require the Pro plan at $19 a month
  • The free plan pays a $0.60 per transaction fee on card payments on top of 2.9%, which Pro waives only for the first 10 transactions a month
  • Beyond 10 transactions a month the Pro plan pays the same per transaction fee as the free one
  • Amex is charged at 3.4% rather than 2.9% on both plans

Xero

  • The Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • Invoices created by connected app partners count against the Early plan invoice limit
  • Multiple currencies, project time and cost tracking, employee expense and mileage claims and industry benchmarking are restricted to the top Established plan at $90 per month
  • Cash flow forecasting is capped at 30 days on Early and 60 days on Growing, with 180 days only on Established
  • Payroll is not included in any plan and costs an extra $36 a month plus $6 per employee or contractor through Gusto
  • Inventory Plus is a paid optional add-on rather than part of any plan
  • The advertised 90% off applies only to the first 6 months, after which the regular $25, $55 or $90 monthly price auto-renews
  • The introductory discount excludes add-ons, usage charges and payment fees
  • Payment fees apply to online invoice payments and to bill payments other than standard domestic ACH, and are billed on top of the subscription
  • Subscriptions are billed monthly with no annual payment option, and after upgrading you must wait one month before downgrading to a cheaper plan
  • Xero states subscription prices are increasing from October 1, 2026

Pricing, plan by plan

Wave

Free
  • AccountingFree
    • Unlimited invoicing
    • Expense tracking
    • Financial reports
  • Payments$undefined/transaction
    • 2.9% + $0.60 per transaction
    • Credit card processing
    • Bank payments (1%)
  • Payroll$35/month
    • $35/month base + $6/employee
    • Tax calculations
    • Direct deposit

Xero

$13/month
  • Early$13/month
    • Send 20 invoices
    • Enter 5 bills
    • Reconcile bank transactions
  • Growing$37/month
    • Unlimited invoices & bills
    • Bulk reconcile transactions
    • Short-term cash flow
  • Established$70/month
    • Everything in Growing
    • Use multiple currencies
    • Track projects

Which should you pick?

Choose Wave if

  • You need double-entry accounting.
  • You want to start without paying.
  • You work on Web, Ios, Android.
  • You also want expense tracking.
Wave review

Choose Xero if

  • You need bill payment.
  • You work on Web, Ios, Android, Api.
  • You also want expense claims.
Xero review

Questions people ask

Is Wave or Xero better?
Neither clearly leads. Wave starts at Free and Xero at $13/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Wave or Xero?
Wave has a free tier; the other does not. Paid plans start at Free for Wave and $13/month for Xero.
Does Wave or Xero run on more platforms?
Wave runs on Web, Ios, Android. Xero runs on Web, Ios, Android, Api.
Can I use Wave for free?
Yes. Wave has a free tier, so you can try it without paying. Xero starts at $13/month.
What is Wave best used for?
Wave is most often used for invoicing and bookkeeping for very small businesses and freelancers, accepting card payments against issued invoices. Of those, invoicing and bookkeeping for very small businesses and freelancers and accepting card payments against issued invoices are not what Xero is typically brought in for.
What can Wave do that Xero cannot?
Wave covers Double-entry accounting, Expense tracking, Receipt scanning, Multi-currency. Xero covers Bill payment, Expense claims, Inventory tracking, Project tracking. Both handle Invoicing, Financial reporting, Bank reconciliation, PayPal.
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