Xero is a cloud-first accounting platform popular outside the US, known for a clean interface, unlimited users on every plan, and a strong app marketplace. It emphasizes collaboration between businesses and their advisors.
Wave offers genuinely free accounting and invoicing software aimed at freelancers and micro-businesses, making money on payments and payroll add-ons. It is a popular starting point for solo operators.
Plans from about $15/month.
Core accounting and invoicing are free; payments and payroll are paid.
- Clean, modern interface
- Unlimited users included
- Great for collaboration
- Strong outside the US
- Genuinely free core features
- Easy for beginners
- Good invoicing
- No subscription for basics
- Some features gated by tier
- Payroll varies by region
- Reporting less deep than QuickBooks for some
- Fewer advanced features
- Support is limited on free tier
- Payroll/payments cost extra
What reviewers say
Xero Reviews
4.0 (2)Solid choice
Xero has been part of our stack. Clean, modern interface. Minor gripe: reporting less deep than quickbooks for some. Would recommend.
Great accounting
We rolled out Xero last quarter. Unlimited users included. Minor gripe: some features gated by tier. Would recommend.
Wave Reviews
4.0 (3)Great accounting
Wave has been part of our stack. Easy for beginners. No real complaints. Would recommend.
Good, not perfect
Been using Wave for a while. Upside: no subscription for basics. Downside: support is limited on free tier.
Solid choice
Been using Wave for a while. Genuinely free core features. Minor gripe: payroll/payments cost extra. Would recommend.
More alternatives & similar tools
Alternatives to Xero
View all →Alternatives to Wave
View all →The Verdict
AI-generated from listing dataXero is a paid, feature‑rich cloud accounting platform ideal for growing small businesses needing unlimited users and strong bank reconciliation, while Wave offers a genuinely free core solution suited to freelancers or micro‑businesses with basic invoicing needs.
Key differences
- •Pricing model: Xero requires a subscription (≈$15/mo); Wave’s core accounting and invoicing are free, with paid add‑ons.
- •User limits: Xero includes unlimited users on all plans; Wave’s free tier does not specify user limits but is aimed at solo users.
- •Feature depth: Xero provides stronger bank reconciliation and a larger app marketplace; Wave offers fewer advanced features.
- •Payroll availability: Xero’s payroll varies by region and may require higher tiers; Wave’s payroll is a separate paid add‑on.
- •Target audience: Xero targets small businesses and accountants; Wave targets freelancers and micro‑businesses.
Pricing & value
Wave’s core accounting and invoicing are free, whereas Xero starts at about $15/month.
Ease of use / learning curve
Wave is described as simple and approachable for beginners, while Xero has a modern interface but more features.
Features & depth
Xero offers strong bank reconciliation, unlimited users, and a large app marketplace; Wave has fewer advanced features.
Integrations & ecosystem
Xero’s large app marketplace provides extensive integrations; Wave’s ecosystem is not highlighted.
Collaboration
Xero includes unlimited users on all plans, facilitating collaboration; Wave’s free tier is aimed at solo users.
Scalability
Xero supports unlimited users and stronger features for growing businesses; Wave is geared toward freelancers/micro‑businesses.
Support
Xero’s paid plans imply standard support; Wave’s free tier has limited support.
Choose Xero if…
Small businesses or accountants needing unlimited users, robust reconciliation, and extensive integrations.
Choose Wave if…
Freelancers or micro‑businesses seeking free core accounting and invoicing with minimal complexity.
Common questions
Is there any cost to start using Xero?
Yes, Xero requires a subscription starting around $15 per month.
Can I use Wave without paying for payroll or payments?
Yes, Wave’s core accounting and invoicing are free; payroll and payments are optional paid add‑ons.
Which platform offers more integrations for third‑party apps?
Xero, because it has a large app marketplace, whereas Wave’s integration ecosystem is not specified.