Wave vs Xero: which one fits your business?
Side-by-side comparison of Wave and Xero — fees, features, ease, support, and which one fits your business. Scored on the same rubric.
Short answer: Wave wins on our scorecard (7.8/10 vs 7.1/10).
| Scored on | Wave | Xero |
|---|---|---|
| Right fit for small biz | 8 | 8 |
| Ease of use | 9 | 7 |
| Fees & pricing | 9 | 7 |
| Customer support | 5 | 5 |
| Features | 7 | 8 |
| Starter Plan | $0/mo | — |
| Pro Plan | $16/mo | — |
| Credit Card Processing | 2.9% + $0.60 | — |
| Full-Service Payroll | $40/mo + $6/employee | — |
| Early Plan | — | $15/month (est.) |
| Growing Plan | — | $42/month (est.) |
| Established Plan | — | $78/month (est.) |
| Standard User Limit | — | Unlimited |
Wave in one paragraph
Wave is the gold standard for free accounting software, provided you are comfortable with self-service support and don't need complex inventory tracking.
Skip it if: You have more than 10 employees or require robust, human-led phone support for your daily banking and bookkeeping.
Xero in one paragraph
Xero is a robust, cloud-native accounting powerhouse best suited for owners who want unlimited users and collaborative access for their accountant.
Skip it if: Skip it if you require immediate phone support or have complex, multi-location physical inventory needs.
Frequently asked questions
Which is better, Wave or Xero?
On our five-axis scorecard, Wave scores higher (7.8/10 vs 7.1/10). Wave is the gold standard for free accounting software, provided you are comfortable with self-service support and don't need complex inventory tracking.
Who should skip Wave?
You have more than 10 employees or require robust, human-led phone support for your daily banking and bookkeeping.
Who should skip Xero?
Skip it if you require immediate phone support or have complex, multi-location physical inventory needs.