Xero vs Wave: The Ultimate 2025 Comparison December 2025

Each staff reviewer at Merchant Maverick is a subject matter expert with experience researching, testing, and evaluating small business software and services. It also has plenty of reports to track your financials, and we can’t forget to mention its great security features. This more advanced software does come at a price, though — it is more expensive than Wave and also has a learning curve that may take some time to master. There are no inventory tracking or management options available. Xero has a pretty advanced inventory management feature that’s available on all plans. Wave has surprisingly well-developed invoicing, which is unlimited even on the free plan.

Integrations

• Wave has the features you would expect for small business accounting software.
• For businesses within those regions, however, Wave provides an affordable, streamlined payroll solution that integrates smoothly with the rest of the Wave accounting platform.
• Each transaction also has a $0.60 fee, but with the Wave Pro Plan, your first 10 transactions each month have a $0 fee.
• With a 4.4-star average and an “A+” BBB rating, Wave earns 5 stars in our review as a budget-friendly option that makes managing business finances easy.

BUT – if you process $1,000 in credit card payments monthly with Wave, you’ll pay ~$29 in fees. Wave FREE vs Xero $20-80/month. By providing feedback on how we can improve, you can earn gift cards and get early access to new features. This easy-to-use and feature-rich software is ideal if you have no bookkeeping experience and want top-notch customer support. While everything may sound good on paper, you won’t know which option is right for your business without getting hands-on first.

Conclusion: Wave Accounting vs Xero

A 30-day free trial additionally gives them the ideal window to determine which plan works best for them. For instance, you can compare Wave and Xero for their features and overall scores, in this case, 9.1 and 9.6, respectively. Choosing the most appropriate Accounting Software for your organization is hard with too much features, options, and terms to take note of. You’ve started a small business, you’re full of creative ideas, and you have customers lining up to work with you.… However, if you have higher revenue, more complex requirements or plan to scale, Xero is likely to be a better choice.

The Early plan is limited to just 20 invoices per month. The biggest drawback is that unlimited invoicing is form 8834 qualified electric vehicle credit vs for .. only available on Xero’s two more expensive plans. Xero offers decent invoicing, although it only has a single template. However, many smaller businesses will find everything they need with Wave, and you can’t beat the cost (or lack thereof). With Xero, you’ll find lots of advanced features, strong reporting, and numerous integrations.

• One of the key reasons Wave is so popular among freelancers and small business owners is its unique free pricing model.
• Invoicing is a critical component of managing your business’s cash flow, and both Wave vs Xero offer robust invoicing solutions.
• Whether it’s tracking project costs, managing approvals, or enabling multiple users to collaborate, Xero’s tools provide greater flexibility and control.
• This low cost and a good set of features make it suitable for smaller businesses.
• Many platforms also deliver real-time insights into cash flow and expenses, helping you spot trends before they become problems.

Overall in Wave vs Xero, Wave’s invoicing system is ideal for smaller businesses with straightforward invoicing needs. As your business grows or becomes more complex, you may find Wave’s tools insufficient to handle advanced accounting operations. While Wave’s simplicity and free offering are great for small businesses or freelancers with straightforward accounting needs, its feature set is somewhat limited. While Wave offers simplicity and affordability, Xero provides the depth and scalability that larger, more complex businesses need to thrive.

The zero-to-hero choice for small business owners

They have three distinct pricing plans to choose from. More than 4 million businesses already manage their finances with Wave. Here’s how the two accounting platforms compare when it comes to integrations. To track expenses outside of reconciled bank transactions within Xero, you’ll need to choose the $60/month plan with access to the Expenses feature.

Final Verdict: Free vs Paid

For small businesses that need efficiency and reliability, accounting software has become one of the smartest investments available. In today’s increasingly interconnected business landscape, the ability to integrate accounting software with other essential tools is crucial for streamlining operations and increasing efficiency. Whether you’re a small business just starting out or a larger company with more complex accounting needs, Xero offers a pricing plan that can fit your current requirements while allowing room for future growth.exibility as you grow. In the Wave vs Xero comparison of expense tracking, Xero offers a more advanced expense tracking system that is well-suited for medium to large businesses with more complex financial needs.

FreshBooks accounting is offering 60% off of their accounting and invoicing software for six months and a 30-day free trial. While you may have to pay a modest monthly fee for some automations, the free plan is pretty solid — even supporting multiple businesses and users. Its cost variance formula and analysis how to calculate cost variance video and lesson transcript feature set offers more than enough for businesses with basic accounting needs, and the UI is beautifully designed and easy to navigate.

Free accounting software or paid powerhouse? Xero’s integrations set it apart from its competitors, allowing you to connect your software with other apps and software your business already uses. Xero has strong accounting features you won’t find with Wave, like inventory management and project management. Gusto offers competitively-priced, easy-to-use payroll software that’s received high marks here at Merchant Maverick. Wave’s notable features include bank reconciliation, expense tracking, invoices, accounts payable, contact management, and inventory management.

Expense and Bill Management

I had zero budget for software, I only sent about 5-10 invoices per month, and my clients paid by check. Xero handles everything I throw at it – multiple projects, team time tracking, complex reporting. Xero has everything – inventory tracking, unlimited users, amazing integrations.

Both platforms offer robust solutions, but they are designed to cater to different types of businesses and financial needs. Whether you’re running an online store, managing a team of employees, or coordinating client projects, Xero’s integrations allow you to centralize your operations and ensure that all your business tools work together seamlessly. This extensive range of add-ons allows businesses to connect Xero with nearly every aspect of their operations, from e-commerce and customer relationship management (CRM) to payment processing and project management. However, for freelancers and small businesses with straightforward needs, Wave’s integrations are sufficient to get the job done without unnecessary complexity.

For international businesses, Xero is the better choice. Wave doesn’t have inventory tracking or good e-commerce integrations. Many businesses start with Wave and move to Xero as they grow. It takes some time to set up, but it’s definitely doable. The free plan gives you everything you need for that stage of business.

User Access & Collaboration

While Wave is ideal for smaller operations looking for simplicity, Xero delivers more comprehensive tools for businesses that require advanced financial management. Its simple interface and straightforward features are perfect for businesses that have basic needs but don’t require extensive accounting functions or third-party integrations. Our experts recommend Xero’s accounting software for small businesses.

Pricing

Choosing the right accounting software means looking at a number of options. Xero offers stronger customer support and scalability, making it our pick for businesses set to expand. Though Wave has a paid pro plan for advanced features like payroll processing and is great for tax filing.

✅ Pros

In June 2020, Wave launched Wave Money as “the future of small business banking”. The only things you’ll need to budget for are central payroll functionality and access to expert services. But how do the two what is the average collection period accounting platforms stack up, and are you better off paying for Xero or using Wave for free? Xero is one of the most popular accounting systems on the market, known for its clean user experience and ease of use. Yes, it’s possible to migrate your data, but the process can depends in complexity depending on the amount of information.

Wave also has built-in payroll, which starts at $20/month plus $6/month per employee. Payroll plans through Gusto start at $40/month plus $6/month per employee. The company frequently runs promotions for new users, such as 75% off monthly pricing for the first three months. Another area where Wave shines is that it supports multiple businesses at no additional cost.