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 | — |
| CC Processing (Visa/MC) | 2.9% + $0.60 | — |
| CC Processing (Amex) | 3.4% + $0.60 | — |
| ACH Processing | 1% ($1 min) | — |
| Payroll (Tax Service) | $40 + $6/employee | — |
| Early Plan | — | $15/mo |
| Growing Plan | — | $42/mo |
| Established Plan | — | $78/mo |
| Gusto Payroll Add-on | — | Varies |
Wave in one paragraph
Wave remains the gold standard for free invoicing and simple bookkeeping for solo service providers, provided you don't mind limited support.
Skip it if: Skip it if you sell physical inventory or plan to scale to a 10+ person team within the next year.
Xero in one paragraph
Xero is a powerful, sleek alternative to QuickBooks that excels for businesses with international needs, provided you don't mind the lack of phone support.
Skip it if: Skip it if you need to call a human being on the phone whenever you have a software question.
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 remains the gold standard for free invoicing and simple bookkeeping for solo service providers, provided you don't mind limited support.
Who should skip Wave?
Skip it if you sell physical inventory or plan to scale to a 10+ person team within the next year.
Who should skip Xero?
Skip it if you need to call a human being on the phone whenever you have a software question.