A detailed comparison of Xero and Wave to help you choose the right tool for your needs.
Cloud accounting platform popular with UK and Australian small businesses.
Free accounting software for small businesses with invoicing and payments.
| Plan | Xero | Wave |
|---|---|---|
| Free Tier | ✗ No | ✓ Completely free accounting |
| Lowest Paid | $15/mo | $0 (payroll extra) |
| Enterprise | Custom | N/A |
| Feature | Xero | Wave |
|---|---|---|
| Bank reconciliation | ✓ | — |
| Invoicing | ✓ | — |
| Payroll | ✓ | — |
| Inventory | ✓ | — |
| 800+ integrations | ✓ | — |
| Multi-currency | ✓ | — |
| Free accounting | — | ✓ |
| Free invoicing | — | ✓ |
| Receipt scanning | — | ✓ |
| Financial reports | — | ✓ |
| Payments processing | — | ✓ |
| Payroll (paid) | — | ✓ |
| Open Source | ✗ | ✗ |
| Rating | ⭐ 4.5 | ⭐ 4.4 |
Choose Xero if: You need uk, australian, and new zealand small businesses wanting modern cloud accounting. Xero excels with its cleaner interface than quickbooks and strong uk/au support.
Choose Wave if: You need freelancers and micro-businesses wanting completely free professional accounting software. Wave stands out with its 100% free for core features and full accounting suite.
Best free option: Wave offers a free tier (Completely free accounting).
It depends on your needs. Xero is better for uk, australian, and new zealand small businesses wanting modern cloud accounting, while Wave is better for freelancers and micro-businesses wanting completely free professional accounting software. Both are excellent tools rated 4.5 and 4.4 respectively.
Xero starts at $15/mo while Wave starts at $0 (payroll extra). Wave also has a free tier.
Most tools offer import/export features to help you migrate. We recommend trying Wave's free tier before fully committing to a switch.
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