Wave vs Xero
Head-to-head comparison of two popular accounting software tools. See which one is right for your needs.
Last updated: March 2026
Quick Verdict
Xero has a higher rating (4.4/5) compared to Wave (4.2/5). However, Wave offers a free tier which Xero does not.
Wave
4.2Wave is a completely free accounting software for small businesses. It offers invoicing, accounting, receipt scanning, and financial reporting at no cost. Wave makes money through optional paid services like payroll and payment processing.
Pricing
Free
Key Features
- Invoicing
- Accounting
- Receipt Scanning
- Bank Connections
- Financial Reports
- Multi-business
- Payment Processing
- Payroll (Paid)
Pros
- + Completely free
- + Unlimited invoicing
- + Good for basics
- + No credit card required
Cons
- − Limited features
- − No inventory
- − Basic reporting
Xero
4.4Xero is a cloud-based accounting platform popular globally, especially in UK, Australia, and New Zealand. It offers beautiful design, unlimited users on all plans, and 1,000+ integrations. Xero is known for its clean interface and strong multi-currency support.
Pricing
$15/month
Key Features
- Invoicing
- Bank Reconciliation
- Unlimited Users
- Multi-currency
- Payroll
- Projects
- Reporting
- 1,000+ Integrations
Pros
- + Unlimited users
- + Great design
- + Strong internationally
- + Good app ecosystem
Cons
- − Limited US payroll
- − Invoice limits on basic plan
- − Learning curve