Free accounting software for small businesses — invoice, pay, and track expenses.
By Tanmay Verma, Founder · Last verified 17 May 2026
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Wave is a standout choice for freelancers and micro-businesses who want free accounting without sacrificing quality. Its invoicing and receipt scanning are best-in-class, but payroll and payment fees can add up. Skip it if you need advanced inventory or deep bank integrations.
Compare with: Wave vs FreshBooks
Last verified: May 2026
Wave punches well above its weight for a free tool. The core accounting is surprisingly robust—unlimited income/expense tracking, customizable invoices, and auto-categorization of bank transactions. The mobile app (iOS/Android) covers invoicing and receipt scanning, which is a lifesaver for freelancers on the go. However, the 'free' model means you'll pay per-transaction for payments (2.9% + $0.60 for credit cards) and a monthly fee for payroll ($20-$35). If you process many small invoices, those fees can eclipse what a paid flat-rate tool like FreshBooks charges. Wave also lacks advanced features like inventory management, project profitability, and time tracking. Compared to QuickBooks Self-Employed, Wave is more intuitive and less cluttered, but QuickBooks offers better tax deduction categorization. Real-world caveat: customer support is mostly self-serve (help center, status page), so if you need hand-holding, consider the paid Advisors plan. Bottom line: Wave is perfect if you're a solopreneur with simple books and a tight budget. Pass if you need inventory, multi-entity, or heavy bank feeds.
Skip Wave if Skip Wave if you need bank feeds without paying, or if your business requires a public API, inventory tracking, or multi-user access with granular permissions.
How likely is Wave to still be operational in 12 months? Based on 6 signals including funding, development activity, and platform risk.
Wave is a free, all-in-one small business software that combines accounting, invoicing, payments, and payroll. Designed for freelancers, solopreneurs, and small business owners, Wave lets you create professional invoices, accept online payments (credit card, bank transfer, Apple Pay), and track income and expenses—all without monthly fees. Key features include automated receipt scanning, cash flow reporting, and a mobile app for on-the-go management. Unlike QuickBooks or FreshBooks, Wave offers free core accounting with paid add-ons like payroll and payment processing, making it ideal for cost-conscious businesses.
Concrete scenarios for the personas Wave actually fits — and what changes day-one when you adopt it.
Create an invoice from a template, send it via email, and accept credit card payment online.
Outcome: Invoice paid within days, automatically recorded in books, zero software cost.
Take a photo of a business expense receipt using the mobile app, categorize it, and track monthly expenses.
Outcome: All expenses digitized and ready for tax time; no receipt loss.
Run full-service payroll for 2 employees each month, including direct deposit and tax filings.
Outcome: Payroll processed in minutes, taxes filed automatically, employees paid on time.
No public REST API — third-party integrations are limited to a handful of partners and Zapier connectors. Payroll is US/Canada only and full-service tax filing is restricted to a subset of US states. The Pro plan removes most free-tier pain points but at $19/mo plus payment processing it stops being meaningfully cheaper than FreshBooks Lite. Inventory features are bare-bones. Customer support on the free tier is community-only.
Project the real annual outlay, including the implied monthly cost when only an annual tier is published.
Vendor list price only. Add-on usage, seat overages, and contract minimums are surfaced under Hidden costs & gotchas.
For each published Wave tier: who it actually fits, and what it adds vs. the previous tier. Cross-reference the cost calculator above for projected annual outlay.
Starter
Free
Ideal for
Solo freelancers and side-hustlers with under 50 monthly invoices who can manually import or enter bank transactions.
What this tier adds
Free entry point with unlimited invoices, estimates, and bookkeeping; no bank feeds or auto-categorization.
Pro
$19/mo (or $190/year)
Ideal for
Growing small businesses that need automatic bank feeds, receipt capture, branded invoices, and late payment reminders.
What this tier adds
Adds auto-import bank transactions, auto-merge/categorize, unlimited receipt capture, branded invoices, and late payment reminders.
Wave Advisors
From $199/mo
Ideal for
Sole proprietors who want a dedicated bookkeeper for monthly reconciliation and tax prep without hiring a full-time accountant.
What this tier adds
The company stage and team size where Wave's pricing actually pencils out — and where peers do it cheaper.
Wave's free Starter plan is unmatched for very small businesses under 50 invoices/month. The Pro plan ($19/mo) competes with FreshBooks Lite ($15/mo) and Xero Early ($13/mo) but adds payment processing fees. For managed bookkeeping, Advisors ($199/mo) is cheaper than a local bookkeeper. Payroll is affordable for micro-employers but limited to US/Canada.
How long it actually takes to get something useful out of Wave — broken out by persona, not the marketing-page minute.
Solo freelancer: sign up and create first invoice in under 10 minutes. Side hustler: install mobile app, snap first receipt, and start categorizing immediately. Micro-employer: set up payroll takes 30-60 minutes to enter employee details and bank info. Advisors setup: after subscribing, bookkeeper assigned within 1–2 business days.
How to bring data in from common predecessors and how to get it back out — written for the switcher, not the buyer.
Pricing, brand, ownership, or deprecation changes worth knowing before you commit. Most-recent first.
Common stack mates teams adopt alongside Wave, with the specific reason each pairing earns its keep.
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Last calculated: May 2026
Includes all Pro features plus a dedicated bookkeeper, monthly reconciliation, statements, tax prep guidance, and priority support.
Payroll
$20-$40/mo + $6/employee
Ideal for
Micro-employers in the US or Canada with 1-2 employees needing self-service or full-service payroll with tax filings.
What this tier adds
Adds payroll processing, direct deposit, tax filings (full-service in supported states), and employee self-onboarding.
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