Wave vs FreshBooks Comparison

In short, QuickBooks Premier is best for businesses that need industry-specific features, while QuickBooks Pro is ideal for small businesses with general accounting needs. For more information, check out our guide on QuickBooks Pro vs. Premier. The platform’s design is intuitive, so it’s easy for anyone to set up and use. FreshBooks is a cloud based software, which means you can use it from anywhere. But you can’t solve all your accounting needs because that’s not what it’s built for.

This efficiency boost is particularly crucial for small businesses, where every minute counts towards keeping and growing the business. Wave uses its native Wave Payments service for payment processing that lets your customers pay with major credit cards directly from the invoice. It also supports digital wallet payments via Apple Pay and recurring billing for clients on retainer. Wave allows you to manually record sales transactions or create and send invoices within the platform.

FreshBooks and Wave are two of the more basic accounting tools on the market. This article will discuss the main differences between FreshBooks and Wave by highlighting differences in features, price, and usability. We’ll highlight notable strengths and drawbacks of each tool and make recommendations to help you pick the best software for your business. Find a platform that makes accounting as easy as possible for your small business. Looking at their customer reviews, they fare pretty well, with only a few concerns.

Track everyone’s time spent on projects and automatically bill for their hours. Then, automate recurring invoices so your clients know when to expect transactions. FreshBooks is cloud-based software, which means you can use it from anywhere. You can download iOS and Android apps that let you painlessly invoice your clients and track expenses wherever and whenever you need to.

Wave has very few direct integrations, but it connects with thousands of apps through Zapier. Some of its popular integrations include PayPal, Square, Stripe, Etsy, HubSpot, Slack, Google Sheets, and Pipedrive. FreshBooks integrates with hundreds of third-party software to automate different business processes that are beyond its capability.

  1. Various customization options are available from the invoice entry screen, and you can preview a completed invoice prior to emailing or printing.
  2. Both Wave and QuickBooks have the option to add payroll capabilities to your account for an additional fee.
  3. Both companies fair pretty well, and have TrustRadius scores above 8 out of 10.
  4. Wave Money is a free business bank account that integrates with your Wave account for easy bookkeeping and faster payments.
  5. Clients in all other states must use Wave Payroll’s self-service plan, which costs less but requires you to file payroll taxes on your own.
  6. All plans include one user with the option to add additional users for $10 per month.

The software allows you to assign expenses to customers, which Wave does not. However, with four plans available, FreshBooks can also be used by growing companies. Because of its simple and intuitive interface, FreshBooks is perfect for those entering the business world for the first time who know nothing about accounting. For small businesses that may experience some growth, FreshBooks may be the better solution.

Expense Tracking

Businesses with limited needs should pick Wave, while those that can benefit from an expanded set of features should opt for FreshBooks Premium. At the very least, a good accounting system should include features for tracking project-related costs for labor, materials, services, and inventory items. Many businesses are involved in the sales of products, so it’s essential that the best accounting software has a dedicated inventory management system. Once you’re done with a project, you can convert it into an invoice easily.

Wave vs Freshbooks: Pros and Cons

Wave also offers self-service payroll starting at $20 per month, plus $6 for each active employee or independent contractor. With the self-service option, you have to handle payroll tax payments and filings manually. Because the majority of your expenses will be added via your bank account, there is little need to enter expenses, though you do have the option to enter a vendor bill, including how the bill was paid. Payroll by Wave is also available, but complete payroll tax services are only available in CA, FL, IL, NY, NC, TX, VA, and WA.

QuickBooks includes an option to add on accounting, which adds bill management, inventory and job costing capabilities in addition to expense tracking. The platform also includes receipt capture and mileage tracking, so you can automatically gather all the information you need to claim expenses for tax purposes in one place. Meanwhile, Wave users said that they appreciate that the platform is free and very easy to use, giving a small business many of the features it needs to get up and running. Some also praised its mobile app that allows you to invoice customers while you’re working remotely. QuickBooks Online is a more scalable option than FreshBooks or Wave, with four plan tiers and the flexibility to support larger, smaller companies.

See how FreshBooks makes bookkeeping easy to use for business owners—even if you have no prior experience with accounting software. When growing businesses feel it’s time to upgrade from invoicing only, they choose FreshBooks to manage their books and deliver better results to their clients. Though both products have apps for sending invoices on the go, FreshBooks’ mobile app capabilities go a step further by letting you snap photos of receipts and track mileage. Switching from WaveApps, spreadsheets or a different accounting software? Our team will migrate your account, onboard your team, and walk you through the most important features you need. I started The Digital Merchant to test the tools, services, and products I use in my digital business.

How We Evaluated FreshBooks vs Wave

FreshBooks was originally designed with the sole proprietor in mind, making it a good fit for service professionals such as attorneys, architects, plumbers, designers, and anyone who works solo. But with four plans available, FreshBooks can also be used by growing businesses. Unlike Wave Payroll, Gusto and SurePayroll can help you find healthcare and other benefits for your employees (though with Gusto, health insurance is available in only 38 states and D.C.). Both providers also have more HR tools than Wave, including new-hire reporting and basic onboarding features.

See What Wave Users Think About “Free”

However, for sole proprietors, freelancers, and micro-business owners, Wave offers all of the features and functionality you need to manage your business. You can connect Wave to any financial institutions, and if you use the optional Payments by Wave, you can accept online payments. There is also a beta feature that will allow you to accept payments from your website. Any invoice created can also be designated as recurring, and the Wave mobile app for iOS and Android devices lets you create and send an invoice from anywhere. In Wave, you’ll also be notified when an emailed invoice has been viewed, or a payment has been made.

FreshBooks vs. Wave: Which Software Should You Use?

Wave Accounting’s only built-in integration is with its payroll product, Wave Payroll. And while Wave Payroll is perfectly serviceable, that’s about all it is. The software includes only basic payroll features like paycheck calculation, direct deposit, access to one payroll report and end-of-year W-2 form generation. However, FreshBooks can work well for some self-employed freelancers, and Wave Accounting’s features could be ideal for some small and midsize businesses. In our FreshBooks vs. Wave review below, we compare each software’s pros, cons, pricing and features to help you hone in on the right option for your needs. QuickBooks Pro and Premier are two different plans available that offer very similar feature sets leading to much confusion.

This site does not include all software companies or all available software companies offers. While weighing your options between FreshBooks and Wave, we encourage you to explore our comprehensive list of the best online accounting for what is an invoice factoring company small businesses. This list lets you compare FreshBooks and Wave alongside competitors like Xero, Zoho Books, and QuickBooks Online. FreshBooks has a solid Projects feature that lets you collaborate with clients and team members.

Although accounting and invoicing are separated into two different product sections on the Wave website (shown similarly below), they don’t require separate accounts. These solutions are integrated within your dashboard and you’ll access them both through your single Wave login. When you reconcile your books, you’ll navigate to the “Reconciliation” tab within the Accounting menu. If you need to manually edit, add or remove any transactions, you can do so on the Reconciliation or Transactions pages. Next, you can add sales tax (if necessary), create customer profiles and customize your invoice templates.

Once the invoice was finished, the next page let me finalize and send it. I approved it, which meant it was ready to go, and then I had the option to either send it or to skip sending it for now. I entered my login information and then told them a little about my business. I love that “Writer” is an option, along with other under-represented careers.

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