FreshBooks vs. Wave (2024): Accounting Software program Comparability

Wave and FreshBooks are two of probably the most noteworthy accounting software program choices for small companies. Wave Accounting’s fully free software program plan lets small-business house owners — particularly self-employed freelancers — observe their funds, ship invoices and receives a commission for gratis. FreshBooks, which begins at $19 a month, has extra expansive invoicing options and a number of plans that scale as much as assist rising and midsize companies.

Nevertheless, FreshBooks can work properly for some self-employed freelancers, and Wave Accounting’s options might be ultimate for some small and midsize companies. In our FreshBooks vs. Wave overview beneath, we evaluate every software program’s professionals, cons, pricing and options that can assist you hone in on the fitting possibility on your wants.

FreshBooks vs. Wave Accounting: Comparability desk

Wave and FreshBooks deal with the identical primary bookkeeping duties, from invoicing and billing to expense monitoring and past. Though they have been constructed for several types of enterprise house owners (Wave for freelancers, FreshBooks for different small companies), each accounting instruments exit of their technique to cater to non-accountant enterprise house owners.

Nevertheless, the 2 instruments differ when it comes to how a lot they price, what number of automations they provide and which third-party apps they sync with for essential duties like payroll and time monitoring.

Plan and pricing information verified as of 5/22/2024.

FreshBooks vs. Wave Accounting: Pricing

FreshBooks pricing and plans

Beginning worth: $19/mo. 

FreshBooks’ 4 plans have pretty industry-standard pricing. Their options vary from primary invoicing and accounting to enterprise-level monetary reporting:

• FreshBooks Lite prices $19 per 30 days and consists of limitless expense, revenue and gross sales tax monitoring.
• FreshBooks Plus prices $33 per 30 days and consists of job automations, extra thorough accounting studies and double-entry bookkeeping.
• FreshBooks Premium prices $60 per 30 days and consists of revenue monitoring, invoice administration and extra bill customizations.
• FreshBooks Choose is a customized plan for enterprises that requires a customized quote.

FreshBooks runs frequent gross sales all year long, providing new customers reductions as deep as 50% off for as much as six months. Companies may reap the benefits of a ten% low cost in the event that they pay yearly quite than month to month.

Get extra info on FreshBooks by studying our detailed FreshBooks overview.

Wave Accounting pricing and plans

Beginning worth: $0/mo.

Till lately, Wave Accounting supplied free accounting software program solely. As of early 2024, nevertheless, the corporate has launched a (comparatively) reasonably priced paid plan that small companies can scale as much as as they develop. The 2 plans break down as follows:

• Wave Starter is free for all times. It consists of limitless invoices, payments, estimates and bookkeeping information in addition to on-line cost acceptance and money circulate monitoring.
• Wave Professional prices $16 per 30 days billed month-to-month or $170 a 12 months billed yearly. It consists of reductions for transaction charges, limitless receipt scanning, expense monitoring and computerized financial institution reconciliation.

Cell receipt scanning, which permits app-based scanning so you possibly can retailer and categorize receipts, is accessible to Wave Starter customers for an extra payment of $11 per 30 days (billed month-to-month) or $96 per 12 months (billed yearly).

In the meantime, Wave Payroll begins at $20/month + $6/worker for self-service payroll or $40/month + $6/worker for full-service payroll.

Study extra about how Wave works by studying our complete Wave Accounting overview.

Characteristic comparability: FreshBooks vs. Wave Accounting

Monetary monitoring

Winner: Wave Accounting

Each Wave and FreshBooks enable you maintain an in depth eye in your funds by way of revenue and expense monitoring. When you join your small business financial institution accounts and bank cards together with your most popular software program, Wave (with the paid plan) or FreshBooks (with all plans) routinely pull in transaction information to maintain you updated in your funds.

Nevertheless, FreshBooks’ most cost-effective plan depends on the single-entry accounting system, which is much less correct than the extra extensively accepted double-entry system. And in contrast to practically each different accounting competitor, FreshBooks doesn’t embrace free accountant entry with its most cost-effective plan both.

By the use of comparability, Wave Accounting, Xero, QuickBooks On-line and most different accounting software program providers routinely default to double-entry accounting. All of those rivals embrace accountant entry with each plan, even plans that in any other case restrict you to at least one consumer solely.

Invoicing

Winner: FreshBooks

Each Wave and FreshBooks have wonderful bill templates which can be straightforward to customise and ship to shoppers. Each accounting merchandise allow you to settle for funds inside the bill, arrange computerized recurring invoices and ship cost deadline reminders.

Nevertheless, FreshBooks has a number of extra invoicing options than Wave. As an example, with FreshBooks, you possibly can connect bills to your invoices for reimbursement, sync time-tracking information to every bill, schedule computerized late cost fees and join together with your clients by way of FreshBooks’ shopper self-service portal.

Wave Accounting wins large over FreshBooks in a single key space: Really limitless invoicing. Whereas FreshBooks allows you to ship a limiteless quantity of invoices every month, it limits the variety of shoppers you possibly can ship these invoices to.

Plan information correct as of 1/24/2024.

Consumer limits

Winner: Wave Accounting

Technically, each Wave Accounting and FreshBooks allow you to add limitless customers to your account. Nevertheless, Wave Accounting allows you to accomplish that at no further price whereas FreshBooks fees a per-user payment. (Notice that further customers are solely obtainable with Wave’s paid plan. The free plan limits you to at least one consumer solely.)

Three of FreshBooks’ 4 plans embrace entry for only one consumer within the base price. (The enterprise-level accounting plan consists of two customers within the base price.) When you can add as many customers as you need, you’ll pay an additional month-to-month payment of $11 per individual — a price that may add up quick.

If you need a number of eyes in your accounts with out paying additional, Xero has limitless customers. Zoho Books fees simply $3 per 30 days per additional consumer, and QuickBooks On-line presents entry for as much as 25 customers (relying on which plan you select).

Time monitoring

Winner: FreshBooks

Wave Accounting doesn’t have a built-in time-tracking software, though you should utilize Zapier to combine third-party apps like Well timed with Wave. (Notice that Wave Payroll doesn’t embrace built-in time monitoring both.)

FreshBooks, in distinction, has a superb time-tracking characteristic constructed into each plan. It’s straightforward to trace time (for your self or for any 1099 contractors you’re employed with), then sync that point to your shopper’s bill so that you will be paid precisely on your time.

Payroll integration

Winner: FreshBooks

Wave Accounting’s solely built-in integration is with its payroll product, Wave Payroll. And whereas Wave Payroll is completely serviceable, that’s about all it’s. The software program consists of solely primary payroll options like paycheck calculation, direct deposit, entry to at least one payroll report and end-of-year W-2 type technology.

Moreover, Wave Payroll’s full-service plan, which calculates and remits payroll taxes in your behalf, is restricted to 14 states. Shoppers in all different states should use Wave Payroll’s self-service plan, which prices much less however requires you to file payroll taxes by yourself.

In distinction, FreshBooks syncs with Gusto and SurePayroll by Paychex, two of probably the most absolutely featured payroll options for small companies within the U.S. (FreshBooks additionally has built-in payroll integrations for its software program customers in Canada, the U.Okay. and Australia.) Gusto is a full-service payroll supplier solely whereas SurePayroll by Paychex has each a self-service and full-service plan.

In contrast to Wave Payroll, Gusto and SurePayroll by Paychex will help you discover healthcare and different advantages on your workers (although with Gusto, medical insurance is accessible in solely 38 states and D.C.). Each suppliers even have extra HR instruments than Wave, together with new-hire reporting and primary onboarding options.

Customer support

Winner: FreshBooks

With Wave’s free plan, buyer assist is restricted to Wave’s chatbot and on-line useful resource heart. Professional plan customers can entry reside customer support throughout enterprise hours on weekdays, however assist is restricted to e-mail and reside chat solely. Cellphone-based buyer assist isn’t obtainable with any Wave Accounting or Wave Payroll plan.

In distinction, FreshBooks has a sturdy on-line useful resource library and a primary troubleshooting chatbot. Most significantly, it additionally has e-mail and telephone assist. You may request assist instantly out of your FreshBooks dashboard, which incorporates fast hyperlinks to the FreshBooks assist heart.

FreshBooks professionals and cons

Execs

• Wonderful bill options, customizations and automations.
• Consumer-friendly interface and cellular app.
• Responsive customer support with a number of strategies of contact.
• 100+ third-party integrations, together with Gusto and SurePayroll by Paychex.
• Constructed-in undertaking administration, time monitoring and expense monitoring.

Cons

• Far fewer third-party integrations than most rivals (particularly Xero and QuickBooks).
• Excessive payment for added customers.
• No accountant entry or double-entry accounting with primary plan.
• Restricted stock administration options.
• Billable shoppers restricted by plan.

Wave Accounting professionals and cons

Execs

• Fully free accounting software program plan.
• Double-entry accounting with common ledger and chart of accounts.
• Simple Wave Payroll integration.
• Limitless customers, checking account syncing and enterprise administration (with paid plan).
• Clear, easy setup directions with user-friendly interface.

Cons

• Third-party app integrations by Zapier solely (subscription required).
• Restricted email-only customer support.
• Restricted accounting options.

Ought to your small business use FreshBooks or Wave Accounting?

When you ought to all the time take your small business’s distinctive wants under consideration when selecting an accounting software program supplier, we suggest following these common tips.

Select FreshBooks if:

• You run a service-based freelancing enterprise and cost shoppers by time or undertaking.
• You need a straightforward technique to collaborate with shoppers on undertaking prices.
• You need accounting software program that gives barely greater than the fundamentals with out getting slowed down in overly advanced options.
• Your organization is rising however you don’t plan to develop into a midsize enterprise or massive company.

Select Wave Accounting if:

• You’re a freelancer, solopreneur, self-employed contractor or a small-business proprietor with a handful of workers.
• You need user-friendly software program that permits you to cost clients and handle your funds for gratis.
• You want primary accounting instruments solely, resembling revenue monitoring, on-line cost acceptance, expense monitoring and invoicing.
• You don’t depend on many third-party apps to handle your small business.

Should you don’t suppose both Wave or FreshBooks will be just right for you, there are dozens extra accounting software program choices to select from, beginning with these:

• QuickBooks On-line begins at $30 a month and has extra accounting options than both FreshBooks or Wave.
• Xero begins at $15 a month and consists of limitless customers and stock monitoring with each plan.
• Zoho Books prices nothing for companies with an annual income >$50K USD. Its plans embrace at the least as many options as QuickBooks On-line, if no more.

Lastly, even in case you’re fairly positive you’ve discovered the fitting accounting product for your small business, we suggest taking it out for a test-drive first. All of the merchandise on this checklist are free (like Wave Accounting), supply a free plan (Zoho Books) or embrace a 30-day free trial (QuickBooks, Xero and FreshBooks).

Establishing a free account is the best first step towards discovering accounting software program that can enable you meet — and even exceed — your monetary targets.

Methodology

To check Wave Accounting vs. FreshBooks, we created free accounts with each providers so we may check every software’s user-friendliness, options, and cellular apps. We seen demos and product specs on each rivals’ websites. We additionally thought of opinions from verified customers on third-party websites (the BBB, the App Retailer and Google Play, amongst others) to attract conclusions about total buyer satisfaction, customer support responsiveness and extra.

To information our analysis, we targeted particularly on how every software program answer excelled or fell brief within the following areas:

• Total accounting and bookkeeping options.
• Pricing and plans.
• Total buyer satisfaction and firm status.
• Consumer-friendliness and accessibility, together with ease of setup and entry to cellular apps.
• Integration with different software program, particularly third-party payroll suppliers.