Xero is a cloud-based accounting platform with advanced automation and multi-currency support, while Wave is a free accounting software designed for small businesses and freelancers with basic invoicing and bookkeeping features. Xero charges from $13/month while Wave remains completely free.
Wave vs Xero — Side-by-side comparison on A Versus B
Free cloud accounting software for freelancers and small businesses with invoicing and basic bookkeeping.
Cloud accounting software designed for small businesses with inventory and multi-location capabilities.
Pricing Model. Multi-Currency Support. Automation Features. Inventory Management. User Base. API Access. Maximum Invoice Value
Choose Wave if you're a freelancer, sole proprietor, or startup with minimal accounting needs and a tight budget—its free tier covers basic invoicing, expense tracking, and financial reports. Choose Xero if you need advanced automation, multi-currency transactions, inventory management, or plan to scale your business beyond $100K annual revenue.
Wave: 1 currency | Xero: 140+ currencies
Wave: Not available | Xero: Advanced tracking with stock levels
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: Free | Xero: $13/month (Early plan)
Wave: Not included (requires separate payment processor) | Xero: N/A
Wave: Permanent (no expiry) | 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: Unlimited (free tier) | Xero: 30 days
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: 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: 5 currencies | Xero: 190+ currencies
Wave: Yes, unlimited | Xero: No, 1-3 users max
Wave: 100+ integrations | Xero: 1,000+ integrations
Wave: Email only | Xero: 24/7 phone + email + chat
Wave: 2.2% + $0.50 | Xero: 2.4% (Xero Payments)
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: 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: N/A | Xero: Full invoicing, payments, expense tracking
Wave: N/A | Xero: 1-3 limited (unlimited on higher tiers)
Wave: N/A | Xero: 4.6 stars (18,000+ reviews)
Wave: N/A | Xero: 500+ native integrations
Wave: N/A | Xero: Manual entry + basic matching
Wave: N/A | Xero: Advanced (multi-location, real-time tracking)
Wave vs Xero — Structured Comparison Data
Machine-readable comparison dataset for Wave vs Xero. Contains 140 attribute comparisons, 5 FAQ pairs.
Wave vs Xero — Attribute Category Vocabulary
Taxonomy of attribute categories used to classify comparison data for Wave vs Xero.
Can I use Wave if I operate internationally?
Wave supports only a single currency (your local currency), making it unsuitable for international businesses. Xero, by contrast, handles 190+ currencies with automatic exchange rate conversion, making it the better choice for companies with multi-country operations or clients abroad.
Is Wave truly free, or are there hidden costs?
Wave's core accounting features (invoicing, expense tracking, profit/loss reports) are completely free with no time limit. The only fees are optional: 2.2% + $0.50 per transaction if you use Wave Payments for credit card processing. Xero requires a minimum $13/month subscription.
Which software is better for e-commerce businesses?
Xero is significantly better for e-commerce due to its built-in inventory management with real-time stock tracking, SKU organization, and automated stock adjustments. Wave lacks inventory features entirely, making it unsuitable for product-based businesses. Xero also supports unlimited invoice amounts, critical for retail operations.
Wave has a gentler learning curve with a simplified interface designed for non-accountants and freelancers. Xero is more complex due to advanced accounting features like multi-entity consolidation and intercompany transactions, requiring more accounting knowledge but offering greater functionality for sophisticated businesses.
Which software scales better as my business grows?
Xero scales significantly better with features like multi-currency support, inventory management, advanced automation, and 1,000+ integrations supporting complex operations. Wave is optimized for micro-businesses and freelancers; once you exceed $100K annual revenue or need multi-currency support, you'll likely outgrow its capabilities.
Pricing Model: Wave has Completely free, while Xero has $13-$130/month (3 paid plans).
Multi-Currency Support: Wave has Single currency only, while Xero has 190+ currencies supported.
Automation Features: Wave has Basic manual entry, while Xero has Bill Pay, recurring invoices, bank feeds automation.
Inventory Management: Wave has Not available, while Xero has Advanced inventory tracking with stock levels.
User Base: Wave has 3+ million users, while Xero has 3.6+ million users.
API Access: Wave has Limited API capabilities, while Xero has Comprehensive REST API for integrations.
Maximum Invoice Value: Wave has $9,999 per invoice (free tier limit), while Xero has Unlimited invoice amounts.