Lastly, the software must generate useful reports related to cash. Wave Accounting has an impressive amount of accounting and bookkeeping tools, especially considering its price. Xero does not offer a built-in payroll but integrates nicely with Gusto. Payroll plans through Gusto start at $40/month plus $6/month per employee. Xero also does not have built-in payment processing, but you can choose from several third-party processors.
Wave only has four integrations — far less than most of the options we’ve reviewed at Merchant Maverick — but one of those is a Zapier integration which connects to 1,000+ add-ons. 4.4 out of 5 stars based on user reviews collected by G2Crowd as of January 2024. Both Xero and Wave are well-reviewed on popular user sites, with the number of reviews exceeding 1,000. Based on our understanding of Xero and Wave, we agree with what users are saying about these platforms. If you are a freelancer, solopreneur, or self-employed professional who doesn’t have complex bookkeeping needs, Wave is an affordable, DIY solution. In addition, if you end up switching accountants or adding a new piece of software, the chance of that working well with your QuickBooks setup is good.
Summary: when to choose Wave vs. Xero
- Pilot is not a public accounting firm and does not provide services that would require a license to practice public accountancy.
- But perhaps what is most appealing about Wave is that its available at no cost.
- You can use popular apps—like Stripe, PayPal, Gusto, DEAR Inventory, HubSpot CRM, Mailchimp, Hubdoc—and other industry-specific apps.
Xero, on the other hand, comes with a steeper learning curve, due to its extensive feature set, and gets easier to use once you familiarize all the features. While Wave can be used to create estimates for a project, it cannot track costs by project. We believe that small businesses should invest in accounting software with powerful A/P features to enable them to process vendor credit memos and create purchase orders (POs). Xero is a complete accounting solution with extensive features, such as fixed asset management. However, it has a steep learning curve and might take time to get used to for beginners. Xero may not have built-in payroll but can integrate with Gusto for your payroll needs.
Xero Software Integrations
You can access the time tracker in Xero Projects which is within the Xero app. In Wave, you can connect your bank accounts only in the paid plan. Also, bank reconciliation doesn’t allow adjustments for timing differences like outstanding checks and deposits in transit.
Regardless of which plan you choose, all users get access to inventory management, accounts payable, and other accounting features. Xero’s well-developed contact management feature is especially worth checking out. Time-saving features like scheduled payment reminders and automatic credit card payments. Connects seamlessly with Wave’s invoicing and accounting software, so you’ll always have the information you need in one place. Wave is designed for freelancers and very small businesses, and it’s very straightforward to get set up with.
Project Management
The company frequently runs promotions for new users, such as 75% off monthly pricing for the first three months. Professional, customizable invoices that are quick and easy to create. Send invoices on-the-go using Wave’s mobile app, which automatically syncs to your accounting records so your bookkeeping is already done. Send unlimited recurring invoices to as many customers as you want. Powerful, cloud-based accounting software that perfectly integrates with Wave’s suite of money management tools to help you run your business better.
With Xero, you’ll find lots of advanced features, strong reporting, and numerous integrations. One of the areas where Wave falls a bit short is in terms of its features. While it does offer a well-rounded set of features, especially at this low price point, it doesn’t include everything you’d find with bigger competitors like Xero. While it isn’t too difficult to master, users with no accounting experience will need to devote some time to getting the hang of using this software. If that’s the case, we invite you to check out our picks for best accounting software for small businesses to see other top choices that may be better for your small business.
Are you looking for an accounting solution to manage your finances and invoice templates for your business? There are a myriad of software options out there, boasting diverse sets of features. They all hold great potential to help you out in handling your company finances outstanding shares overview and where to find them and invoicing. 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. If you’re outside the US, Xero’s Expenses feature (and Projects) is available as a paid add-on instead.