Wave is a free accounting software ideal for small businesses and freelancers with basic needs, while Xero is a paid cloud-based platform offering advanced features, multi-currency support, and scalability for growing companies. Xero costs $13-62/month while Wave remains completely free for core accounting.
Wave vs Xero — Side-by-side comparison on A Versus B
Free cloud-based accounting software for small businesses and freelancers
Cloud-native accounting platform designed for small businesses with intuitive UI and strong mobile-first capabilities.
Pricing Model. Multi-Currency Support. API & Integrations. Multi-User Access. Financial Reporting. Invoice Customization. Suitable Business Size
Choose Wave if you're a freelancer, startup, or small business with simple accounting needs and a tight budget—it provides essential invoicing, expense tracking, and financial reports at zero cost. Choose Xero if your business is growing, operates internationally, requires advanced reporting, multiple user access, or needs extensive third-party integrations—the monthly investment pays for itself through increased efficiency and scalability.
Wave: 1 currency | Xero: 140+ currencies
Wave: $0/month (full features) | Xero: N/A
Wave: $20/month (Wave Money) | Xero: N/A
Wave: Double-entry bookkeeping | Xero: N/A
Wave: Yes (P&L, balance sheet, tax forms) | Xero: N/A
Wave: Not included (requires separate payment processor) | Xero: N/A
Wave: No trial needed (free forever) | Xero: 30 days
Wave: $15/month (payroll add-on) | Xero: N/A
Wave: 0 (third-party tools required) | Xero: N/A
Wave: Invoice viewing, payment acceptance | Xero: N/A
Wave: 2.2% + $0.50 per transaction | Xero: N/A
Wave: 4.2/5 (15,000 reviews) | Xero: N/A
Wave: 25 native integrations | Xero: N/A
Wave: Basic (invoicing only) | Xero: N/A
Wave: Receipt capture and invoice viewing | Xero: N/A
Wave: $0-$240 (optional add-ons) | Xero: N/A
Wave: $0 (free) | Xero: $13-62 depending on plan
Wave: 8 standard reports | Xero: 50+ customizable reports
Wave: Full accounting and invoicing | Xero: Full accounting and expense tracking
Wave: Basic reconciliation | Xero: Advanced automation saves ~8 hours
Wave: Unlimited | Xero: Varies by Starter plan
Wave: N/A | Xero: Good but secondary focus
Wave: N/A | Xero: Comprehensive accounting-focused
Wave: N/A | Xero: Standard tools included
Wave: N/A | Xero: Native multi-entity support
Wave: N/A | Xero: Available (Select tier+)
Wave: N/A | Xero: 200+ with live exchange rates
Wave: N/A | Xero: 5 (Standard), Unlimited (Premium)
Wave: N/A | Xero: Full capability with offline mode
Wave: N/A | Xero: Unlimited organizations
Wave: N/A | Xero: Third-party add-on (Guidepoint, Namely)
Wave: N/A | Xero: Full (multi-user simultaneous editing)
Wave vs Xero — Structured Comparison Data
Machine-readable comparison dataset for Wave vs Xero. Contains 112 attribute comparisons, 5 FAQ pairs.
Wave vs Xero — Attribute Category Vocabulary
Taxonomy of attribute categories used to classify comparison data for Wave vs Xero.
Yes, Wave's core accounting features including invoicing, expense tracking, and financial reports are completely free with no time limit. Wave monetizes through optional add-ons like Wave Payments (2.2% + $0.50 per transaction for credit card processing), but these are entirely optional. Your accounting data remains free to use indefinitely.
No, Wave supports only single-currency accounting (USD in the US, CAD in Canada). If your business operates internationally or deals with multiple currencies, Xero is a better choice with support for 150+ currencies and real-time exchange rate conversion.
How many users can access Xero simultaneously?
Xero's Starter plan ($13/month) allows 1 user only. The Standard plan ($37/month) and Premium plan ($62/month) offer unlimited users, making it suitable for team-based businesses. Wave's free plan allows up to 2 users.
Which software integrates better with e-commerce platforms?
Xero has significantly more integrations (1000+) including native connections with Shopify, WooCommerce, BigCommerce, and Amazon. Wave supports 100+ integrations but with more limited e-commerce coverage. For online retailers, Xero's deeper integration ecosystem is more comprehensive.
Wave does not offer native payroll processing. Xero offers payroll in select countries (US, UK, Australia, Canada) as an add-on feature. Both platforms allow integration with third-party payroll services like Gusto or ADP for payroll needs.
Pricing Model: Wave has Free (core accounting), while Xero has $13-62/month depending on plan.
Multi-Currency Support: Wave has Single currency only, while Xero has 150+ currencies supported.
API & Integrations: Wave has 100+ integrations, while Xero has 1000+ integrations.
Multi-User Access: Wave has Limited (free plan restrictions), while Xero has Unlimited users on higher tiers.
Financial Reporting: Wave has Basic reports (P&L, balance sheet), while Xero has Advanced reports (50+ customizable).
Invoice Customization: Wave has Basic templates, while Xero has Advanced customization with branding.
Suitable Business Size: Wave has Startups, freelancers, sole proprietors, while Xero has SMBs to mid-market enterprises.