Wave is a free, cloud-based accounting software that is designed primarily for small businesses and freelancers. It’s an appealing option due to its zero-cost model, which offers a range of core accounting features without a subscription fee. Here’s an in-depth review:
Features
- Accounting & Bookkeeping: Wave helps users track income, expenses, and generate financial reports like profit and loss, balance sheet, and tax summaries.
- Invoicing: Wave includes customizable invoice templates and allows you to send professional invoices, track payments, and set up recurring billing.
- Bank and Credit Card Connections: Users can connect their bank accounts and credit cards to import transactions automatically and reconcile accounts easily.
- Receipt Scanning: Wave allows users to snap photos of receipts and automatically extract key information for expense tracking.
- Payroll (Paid Feature): Payroll services are available for a fee, allowing users to pay employees, handle tax filings, and generate reports.
- Payment Processing (Paid Feature): Wave allows businesses to accept payments via credit cards and bank transfers, charging a fee for each transaction.
- Financial Reporting: Wave generates various reports like profit and loss statements, balance sheets, tax summaries, and more to help businesses track their financial health.
- Mobile App: Wave has a mobile app that allows users to manage expenses, create invoices, and track financial activities on the go.
Pros
- Free to Use: Wave offers a lot of functionality for free, including accounting, invoicing, and receipt scanning, making it a great option for small businesses with limited budgets.
- User-Friendly Interface: The platform is easy to navigate, even for those with little accounting experience. The interface is simple and intuitive.
- Invoicing and Payments: The invoicing feature is robust and allows users to set up recurring invoices and automate payment reminders. The ability to accept payments directly from invoices is a huge time-saver.
- Strong Reporting: Wave provides detailed financial reports that can be customized to help you understand your business’s financial status.
- Bank Syncing: Bank and credit card account syncing make it easy to import transactions, reducing the time spent on manual data entry.
- No Monthly Fees: For users who only need basic accounting and invoicing features, Wave is a great choice because it’s entirely free for core functionalities.
Cons
- Limited Advanced Features: While Wave provides solid basic accounting tools, it lacks some of the advanced features offered by competitors like QuickBooks or Xero, such as project management or inventory tracking.
- Payroll and Payment Processing Fees: The free plan covers accounting and invoicing, but payroll services and payment processing (credit card and ACH payments) come with transaction fees. The payroll service is only available in the U.S. and Canada.
- Limited Customization for Reports: While Wave offers financial reports, the customization options are somewhat limited compared to more expensive options like QuickBooks.
- Customer Support: While Wave offers email support, phone and live chat options are more limited, which can be frustrating for users who need quick responses to urgent issues.
- No Multi-Currency Support: Wave lacks multi-currency support, making it less ideal for businesses that deal with international clients or have operations in multiple countries.
Pricing
Wave is free for most of its core features, including:
- Accounting & Bookkeeping
- Invoicing
- Receipt Scanning
- Bank Account and Credit Card Syncing
- Basic Financial Reports
However, paid services include:
- Payroll: Starts at $20/month + $6 per employee or contractor (available in U.S. and Canada).
- Payment Processing:
- Credit Card Payments: 2.9% + 30¢ per transaction (U.S. rate).
- Bank Payments (ACH): 1% per transaction.
Wave’s free plan makes it one of the most budget-friendly accounting tools, particularly for solo entrepreneurs and small businesses with simple needs.
Who is Wave Best For?
- Small Businesses and Freelancers: Wave is especially ideal for businesses and freelancers with basic accounting needs who want a free, easy-to-use solution.
- Budget-Conscious Businesses: Wave is great for entrepreneurs who need to keep costs low. The free core features, combined with only optional paid services, make it accessible.
- U.S. and Canadian Users: For businesses in the U.S. or Canada, Wave’s payroll services are available, making it an attractive option for small teams.
- Service-Based Businesses: If you offer services and need basic invoicing, expense tracking, and reporting, Wave is an excellent tool.
Final Verdict:
Wave is a fantastic free accounting solution for freelancers, solopreneurs, and small businesses that need basic accounting, invoicing, and reporting capabilities. It’s user-friendly, offers strong invoicing features, and allows you to manage financials with minimal effort. However, its limitations in advanced features, customization options, and lack of multi-currency support mean it’s not the best choice for businesses that need more complex functionality.
For businesses looking for a no-cost option to handle basic accounting tasks, Wave is one of the best choices available. It’s ideal for those starting out or operating on a tight budget. However, as your business grows or requires more advanced features, you may eventually need to upgrade to a paid solution like QuickBooks or Xero.
