Wave
Xero
| Feature | Wave | Xero |
|---|---|---|
| Pricing | Free / from $16/mo | From $15/mo |
| Free Plan | ✓ Yes | ✗ No |
| Rating | 4.2 / 5 | 4.4 / 5 |
| Best For | freelancers, solopreneurs, micro-businesses, side-hustlers | small-businesses, accountants, international-companies, uk-businesses |
| Founded | 2010 | 2006 |
| Accounting | ✓ | ✗ |
| Invoicing | ✓ | ✓ |
| Receipt Scanning | ✓ | ✗ |
| Bank Connections | ✓ | ✗ |
| Financial Reports | ✓ | ✗ |
| Payroll Addon | ✓ | ✓ |
| Payments Addon | ✓ | ✗ |
| Bank Reconciliation | ✗ | ✓ |
| Reporting | ✗ | ✓ |
| Projects | ✗ | ✓ |
| Expenses | ✗ | ✓ |
| Multi Currency | ✗ | ✓ |
✓ Wave Pros
- Core accounting and invoicing completely free
- Unlimited income and expense tracking
- Receipt scanning with OCR included
- Simple enough for non-accountants
✗ Wave Cons
- Payroll and payments are paid add-ons
- No inventory or project tracking
- Limited integrations compared to competitors
✓ Xero Pros
- Beautiful, modern interface
- Unlimited users on all plans
- Strong in UK, Australia, NZ markets
- Excellent bank reconciliation
✗ Xero Cons
- Fewer integrations than QuickBooks in US
- Payroll is a paid add-on
- Inventory management is basic
The Verdict
Wave is built for freelancers and solopreneurs, with a focus on accounting and invoicing. Xero targets small businesses and accountants and leads with invoicing and bank-reconciliation.
Pricing is close: Xero starts at $15/mo versus $16/mo for Wave — not a deciding factor on its own.
Wave has a free plan, which gives it a meaningful edge for individuals and small teams exploring their options. Xero requires a paid subscription from day one.
This is a genuinely close comparison. If you can, sign up for both free trials (where available) and run a one-week test with your actual team tasks before deciding.