Xero is a premium cloud accounting platform with advanced features and multi-currency support ideal for growing businesses, while Wave is a free-to-use solution best suited for freelancers and small startups with basic accounting needs. Xero costs $13-62/month while Wave remains completely free.
Xero vs Wave — Side-by-side comparison on A Versus B
Cloud-native accounting platform designed for small businesses with intuitive UI and strong mobile-first capabilities.
Free cloud-based accounting software for small businesses and freelancers
Pricing Model. Multi-Currency Support. User Seats (Starter Plan). Invoice Customization Options. Inventory Management. API Access. Payroll Integration
Choose Xero if you're a growing business needing advanced features, multi-currency transactions, inventory management, and payroll processing—the paid tiers justify costs for scale. Choose Wave if you're a freelancer, sole proprietor, or early-stage startup operating on a tight budget with straightforward domestic invoicing and expense tracking needs.
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: 30 days | Wave: No trial needed (free forever)
Xero: 5 (Standard), Unlimited (Premium) | Wave: N/A
Xero: Full capability with offline mode | Wave: N/A
Xero: 140+ currencies | Wave: 1 currency
Xero: Unlimited organizations | Wave: N/A
Xero: Third-party add-on (Guidepoint, Namely) | Wave: N/A
Xero: $13-62 depending on plan | Wave: $0 (free)
Xero: 50+ customizable reports | Wave: 8 standard reports
Xero: Full accounting and expense tracking | Wave: Full accounting and invoicing
Xero: Advanced automation saves ~8 hours | Wave: Basic reconciliation
Xero: Varies by Starter plan | Wave: Unlimited
Xero: Full (multi-user simultaneous editing) | Wave: N/A
Xero: N/A | 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: $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 vs Wave — Structured Comparison Data
Machine-readable comparison dataset for Xero vs Wave. Contains 112 attribute comparisons, 5 FAQ pairs.
Xero vs Wave — Attribute Category Vocabulary
Taxonomy of attribute categories used to classify comparison data for Xero vs Wave.
Wave is completely free for core accounting features including invoicing, expense tracking, and financial reporting. Xero offers a free trial (30 days) but requires a paid subscription ($13-62/month) after that. Wave's free model makes it ideal for cost-conscious startups, while Xero's premium pricing reflects its advanced capabilities.
Which is better for international business?
Xero is significantly better for international operations, supporting 140+ currencies and multi-currency invoicing natively. Wave only supports single-currency accounting, making it unsuitable for businesses with international clients or suppliers. If you conduct cross-border transactions, Xero is the clear choice despite its cost.
How many team members can use each platform?
Wave allows unlimited team members at no additional cost—your entire staff can access the account simultaneously. Xero's Starter plan includes 3 users; additional users cost extra ($5-15/month per user depending on plan). For teams, Wave provides significant cost savings.
Does either platform have inventory management?
Xero includes built-in inventory tracking and management features, allowing you to monitor stock levels, set reorder points, and track costs. Wave does not offer inventory management, making it better suited for service-based businesses. E-commerce or product-based businesses should choose Xero.
Which platform has a steeper learning curve?
Wave has a simpler, more intuitive interface designed for users with minimal accounting knowledge. Xero's feature-rich interface requires more setup time and accounting familiarity, though it offers more advanced reporting and customization. Beginners generally find Wave easier to adopt quickly.
Pricing Model: Xero has $13-62/month (tiered plans), while Wave has Free (with optional paid add-ons).
Multi-Currency Support: Xero has 140+ currencies supported, while Wave has Single currency only.
User Seats (Starter Plan): Xero has 3 users included, while Wave has Unlimited users free.
Invoice Customization Options: Xero has 15+ templates with advanced branding, while Wave has 5 basic templates.
Inventory Management: Xero has Built-in (on paid plans), while Wave has Not available.
API Access: Xero has Available on all paid plans, while Wave has Limited API functionality.
Payroll Integration: Xero has Full payroll processing included, while Wave has Payroll add-on available (paid).