Making the best choice for your company requires knowing how Wave and Xero differ in terms of features, cost and target audience.
Both Wave and Xero have the ability to create invoices but Xero has more sophisticated features like project-based billing, time tracking and tax management. While Xero provides time tracking and project-based billing for service-based businesses, Wave integrates with Driversnote to track mileage.
There are notable price differences between Wave and Xero. Whereas Xero has a tiered pricing structure with no free option but does offer a 30-day free trial and standard payment gateway fees, Wave offers a free Starter plan with unlimited users and clients.
Both Wave and Xero are easy-to-use platforms with straightforward interfaces that provide rapid setup and training. They also have similar mobile functionality such as essential accounting and invoicing features for business continuity while on the go.
Wave provides strong integrations with major platforms and CRM connectivity while Xero offers strong integration capabilities with multiple payment gateways and third-party software compatibility.
Wave concentrates on pre-made financial reports whereas Xero provides advanced reporting along with options for creating custom reports. Wave offers email and chat support while Xero offers round-the-clock customer service.
While Xero is a complete platform for expanding companies looking for advanced features and long-term scalability, Wave is an affordable option for independent contractors and small enterprises.
| Wave | Xero | |
|---|---|---|
| Core Features | ||
| Custom Templates | Multiple customizable invoice templates available | Customizable invoice templates with branding alignment |
| Send Estimates/Quotations | Yes | Yes |
| Recurring Billing Automation | Yes | Yes |
| Expense Tracking | Yes | Yes |
| Time Tracking | No | Yes |
| Mileage Tracking | Yes, available through Driversnote integration | Yes |
| Automated Payment Reminders | Yes | Yes |
| Project-Based Billing | No | Yes |
| Tax Handling | Yes (basic tax support) | Yes |
| User Permissions/Role Management | Yes | Yes |
| File Uploads | Yes | Yes |
| Pricing and Plans | ||
| Free Plan Availability | Yes | No |
| Pricing Range | Starter: $0/month Pro: $16/month |
Early: $2.50/month Growing: $5.50/month Established: $9/month |
| Trial Period | No trial (free plan available) | 30-day free trial available |
| User Limits | Unlimited | Varies by plan – Early plan supports basic users |
| Client Limits | Unlimited | Plan-specific limits |
| Storage Limits | Yes (via Driversnote integration) | No specific limits mentioned |
| Payment Processing Fees | Starter: 2.9% + $0.60 Pro: 2.9% + $0 (first 10) then 2.9% + $0.60 |
Standard payment gateway fees apply |
| Ease of Use | ||
| User Interface | Simple | Simple – One of the most user-friendly accounting solutions |
| Onboarding Experience | Yes | Yes |
| Mobile App Availability | Available for iOS and Android | Available for iOS and Android |
| Mobile App Functionality | Invoicing and payment management | Core invoicing and accounting features supported |
| Integration | ||
| Payment Gateways Supported | Credit card, bank transfer, ACH payments | Multiple gateways including Stripe, PayPal, GoCardless |
| Accounting Software Compatibility | QuickBooks, FreshBooks, spreadsheets, export capabilities | Yes – Broader range of integration options than many competitors |
| CRM Integration | BlueCamroo, various CRMs via Zapier, API available for custom integrations | Multiple CRM integrations available |
| API Availability | Yes | Yes |
| Reporting & Analytics | ||
| Bank Connections | Yes | Yes |
| Pre-Built Financial Reports | Yes | Yes |
| Custom Report Creation | No | Yes |
| Security & Compliance | ||
| Dashboard Metrics | Yes | Yes |
| Data Encryption | Yes | Yes |
| GDPR Compliance | Yes | Yes |
| Backup Options | Automatic | Automatic – Cloud-based backup system |
| Customer Support | ||
| Support Channels | Email, Chat | 24/7 online support |
| Help Center/Knowledge Base | Yes | Yes |
| 24/7 Support | No | Yes |
| Adaptability | ||
| Multi-Currency Support | Yes | Yes |
| Localization | English | Yes |
| Industry-Specific Customization | Yes | Yes |
| Scalability | Freelancers to Small Businesses | Freelancers to SMBs – Designed for small businesses and solopreneurs with room to grow |
| Read Wave Review | Read Xero Review |
