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Wave vs Xero

A detailed comparison to help you choose the right tool for your needs.

Wave logo

Wave

Accounting & Finance

Try Wave
VS
Xero logo

Xero

Accounting & Finance

Try Xero

A
About Wave

Wave is a free cloud-based accounting platform built specifically for small businesses, freelancers, and solopreneurs who need professional financial tools without the hefty price tag. It offers core accounting features including invoicing, receipt scanning, expense tracking, and financial reporting, all accessible through a clean and intuitive interface. Wave generates revenue through optional paid services like payment processing and payroll, which means the core accounting and invoicing features remain genuinely free. It's a solid choice for anyone who doesn't need the complexity of tools like QuickBooks but still wants reliable double-entry accounting.

B
About Xero

Xero is a cloud-based accounting platform designed primarily for small to medium-sized businesses and their accountants or bookkeepers. It handles core financial tasks like invoicing, bank reconciliation, expense tracking, payroll, and financial reporting through a clean, approachable interface. What sets Xero apart is its strong ecosystem of over 1,000 third-party integrations and its emphasis on real-time collaboration between business owners and their financial advisors. Originally founded in New Zealand, it has a particularly strong presence in Australia, the UK, and New Zealand, though it serves businesses globally.

Pricing Comparison

Tool
Wave
Xero
Price
Free — Additional services available for a fee
From $13/mo
Category
Accounting & Finance
Accounting & Finance
Rating
3.6 (14)
4.1 (104)
Free Plan
Yes
No
Integrations
6+ apps
8+ apps
Founded
2009
2006

Feature Comparison

Feature
Wave
Xero
Invoicing and billing management
Expense tracking and categorization
Financial reporting and analytics
Bank connection and reconciliation
Multi-currency support
Payment processing integration
Real-time financial reporting
Automated bank reconciliation
Expense tracking with receipt capture
Invoicing and billing automation
Payroll processing and management
Inventory tracking and management

Choose Wave

Wave offers free accounting software for small businesses and freelancers.

Try Wave Free

Read full review

Choose Xero

Xero is a cloud-based accounting software tailored for small to medium-sized businesses.

Try Xero Free

Read full review

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Score Comparison

Ease of Use
8.0
8.0
Features
7.0
9.0
Pricing
10.0
8.0
Support
6.0
7.0
Integrations
7.0
8.0
Overall
7.6
8.0
WaveXero

Our Verdict

Wave

You're a freelancer or small business looking for completely free accounting software with basic features.

More affordable
XeroWinner

Your small to medium-sized business prioritizes robust accounting features at an affordable monthly rate.

More features
Better support
More integrations

Wave vs Xero: The Bottom Line

Both Wave and Xero are strong accounting & finance tools, but they serve different needs. Xero has a higher user rating (4.1 vs 3.6). On pricing, Wave is more affordable starting at $0/mo.

Still unsure? Check the full reviews for Wave and Xero, explore Wave alternatives, or use our AI search to describe exactly what you need.

Frequently Asked Questions

Is Wave or Xero better?

It depends on your needs. Wave (3.6★) is free to start, while Xero (4.1★) is from $13/mo. Xero has a higher user rating.

Can I switch from Wave to Xero?

Yes. Most SaaS tools offer data export features. Check if Xero has a migration guide or import tool specifically for Wave users. Many offer onboarding assistance for switchers.

Which is cheaper, Wave or Xero?

Wave starts at $0/mo, which is cheaper than Xero at $13/mo. Wave also offers a free plan.

What are the main differences between Wave and Xero?

Wave focuses on invoicing and billing management and expense tracking and categorization, while Xero emphasizes real-time financial reporting and automated bank reconciliation. Both are in the Accounting & Finance category but serve slightly different use cases.