Running a small business is tough, and managing your money can feel like a headache.
How do you pick the right one?
Many business owners struggle to find a tool that fits their needs without breaking the bank.
Are you wondering which one will work best for your business?
This guide will help you understand Wave vs FreshBooks and their differences so you can make a smart choice.
Overview
We tried out both Wave and FreshBooks.
We used them like real business owners would.
This helped us see what each one is good at.
Now, let’s compare them side-by-side.
Over 4 million small businesses trust Wave to manage their finances. Explore Wave’s plans and find the right fit.
Pricing: Free plan available. Paid plan starts at $19/month.
Key Features:
- Invoicing
- Banking
- Payroll add-on.
Ready to simplify your invoicing and get paid faster? Over 30 million people have used FreshBooks. Explore it for more!
Pricing: It has a free trial. Paid plan starts at $2.10/month.
Key Features:
- Time Tracking
- Invoicing
- Bookkeeping
What is Wave?
Okay, let’s talk about Wave.
Think of it like a helpful friend for your business money.
It lets you do things like send invoices and track what money comes in and goes out.
It can help you see the big picture of your business finances.
Also, explore our favorite Wave alternatives…
Our Take
Don’t settle for less! Join the over 2 million small businesses that rely on Wave’s powerful, free core accounting features to streamline their finances today.
Key Benefits
Wave’s strengths include:
- A 100% free core accounting plan.
- Serving over 2 million small businesses.
- Easy invoice creation and payment processing.
- No long-term contracts or warranties.
Pricing
- Starter Plan: $0month.
- Pro Plan: $19month.
Pros
Cons
What is FreshBooks?
Okay, so let’s talk about FreshBooks.
Think of it like a helper for your money stuff.
It’s made for people who run small businesses and do freelance work.
It helps you send bills (invoices), keep track of your money coming in, and see where your money is going.
It’s like having a simple way to manage your business finances.
Also, explore our favorite Freshbooks alternatives…
Our Take
Tired of complex accounting? 30 million+ businesses trust FreshBooks to create professional invoices. Simplify your accounting software today!
Key Benefits
- Professional invoice creation
- Automated payment reminders
- Time tracking
- Project management tools
- Expense tracking
Pricing
- Lite: $2.10/month.
- Plus: $3.80/month.
- Premium: $6.50/month.
- Select: Custom Pricing.
Pros
Cons
Feature Comparison
Choosing the best accounting software is a vital step for small business owners.
This Wave review and FreshBooks reviews comparison will evaluate these accounting software solutions to determine which provides the right blend of invoicing features, money management features, and pricing plans for your business operations.
1. Core Key Features
- Wave Financial is known for its robust free accounting software. The free version includes a robust general ledger, unlimited invoices, and basic bookkeeping records. Its two plans—a free plan (starter plan) and a paid plan (pro plan) for advanced features—make it an attractive free platform.
- FreshBooks does not offer a free version. Its pricing plans (Lite, Plus, Premium) are subscription-based, with different additional costs per month. The softwareis built around invoicing features and time tracking, but its lower tiers limit the number of billable clients.
2. Invoicing and Payments
- Wave makes it faster and easy to create professional invoices and supports recurring billing. It lets you to accept online payments via credit card payments (credit card transaction) and bank payments (bank transfers), with Wave Payments handling the payment processing for a fee.
- FreshBooks offers advanced custom invoicing features, including automated payment reminders for late fees and recurring billing. It supports online payments via FreshBooks Payments, ACH transfers, and even Apple Pay, with some advanced payments functionality.
3. Expense and Receipt Management
- Wave offers strong expense tracking by allowing users to auto import bank transactions and auto merge them from linked bank accounts. Digital receipt capture and receipt scanning is an add-on service or part of the paid pro plan.
- FreshBooks has excellent expense tracking built into every subscription level. Its freshbooks mobile app for iOS and Android devices allows team members to snap a photo of a receipt and automatically categorize transactions automatically.
4. Time Tracking and Project Management
- Wave Accounting does not have built-in time tracking to log billable hours. This is a significant limitation for service-based independent contractors who need to accurately track time for only the projects they are billing for.
- FreshBooks offers superior built-in time tracking across all plans. Its platform is designed to manage projects, and the premium plan or higher includes project profitability tracking, making it a clear winner for time-based self employed professionals.
5. Payroll and Employee Access
- Wave Payroll is a fully integrated accounting and payroll add-on service that supports direct deposit and tax filing for active employee and independent contractor paid. Wave allows for unlimited users on its paid plan.
- FreshBooks relies on integration with other accounting software (or an external payroll processing service) for full payroll. FreshBooks limits the number of team members (additional user) who can access the account, with higher pricing plans supporting a higher, but still limited, unlimited number of users.
6. Accounting Foundation
- Wave uses true double entry accounting even in its free starter plan, which includes the general ledger and is crucial for financial reports. This robust foundation is often why people recommend wave to other small business owners.
- FreshBooks‘ Lite plan does not include the standard double entry accounting system or the full set of accounting reports, requiring an upgrade to the plus plan or premium plan for these foundational tools.
7. Integrations and Ecosystem
- Wave integrates best with its own suite (Payments, Payroll) and has limited third-party integrations. It is a simpler, mostly self-contained system.
- The FreshBooks platform offers a large number of integrations with other accounting software and business apps like QuickBooks Online, POS systems, and CRM tools. This provides a better system for business partners.
8. Mobile Functionality
- Wave offers a dedicated mobile app for ios and android devices, but a wave accounting review will often note its primary focus is on receipt scanning and digital receipt capture, with some limitations on the web version.
- The freshbooks mobile app provides near-full functionality to create professional invoices, track billable time, and manage accounts payable from any mobile device, connected via internet connection.
9. Support and Data Security
- Wave’s support for free plan users is mainly through its online help center, only paid pro plan users get better, though still limited, customer support. Security includes multi factor authentication.
- FreshBooks provides phone and email customer support across all pricing plans, which is a huge factor in giving peace of mind to small business owners. The platform ensures strong data security for all bank transactions and credit card transaction data.
What to look for in an Accounting Software?
To select the best financial tool, you must evaluate how well a small business accounting software addresses these five key areas:
- Scalability: Can the software grow with any of your business? A crucial factor is whether the software can handle your increasing needs. Look for features that support multiple users & the ability to manage multiple organized companies from a single account. Scalability is also reflected in the pricing—some platforms offer a discounted rate if you commit to a longer-term subscription, growing with your financial commitment and helping you manage cash flow.
- Support: What kind of help is available if you have questions?Support quality is vital when dealing with invoicing software errors or financial discrepancies. Inquire about the guaranteed response time, for example, within one or two business days. Good platforms offer an extensive help center and responsive support to assist you quickly and accurately.
- Ease of Use: Is it something you and your team can learn quickly? The simplicity of the user interface determines how fast your team can adopt the system. An intuitive design helps you quickly navigate and track expenses and transactions. The easier the software is to use, the less time you’ll spend on training and the more time you can devote to your core business operations.
- Specific Needs: Does it handle the unique things your business does? Ensure the software’s core functionality aligns with your specialized needs. If you need to segment reports for different periods, check for robust filtering options, such as customizable date range reports. While some software focuses on personal finance and general spending, a dedicated small business accounting software must excel at business-specific functions like detailed expense tracking and reporting.
- Security: How safe is your financial data with this software?Protecting your finances is non-negotiable. The software should employ strong encryption and secure server practices. Look for features like multi-factor authentication. Ensuring the security of your invoicing software and bank accounts gives you confidence in the safety of your business’s cash flow and financial data.
Final Verdict
We looked at everything closely.
Our choice depends on your business needs.
If you’re new and need free tools, Wave is a great pick.
It handles invoices and expenses well. It costs you nothing.
But if you need more, like time tracking or quick help, FreshBooks might be better.
It does cost money. We tried both products ourselves.
This gives you an honest review.
We focused on what small businesses truly need.
More of Wave
- Wave vs Puzzle IO: This software focuses on AI-powered financial planning for startups. Its counterpart is for personal finance.
- Wave vs Dext: This is a business tool for capturing receipts and invoices. The other tool tracks personal expenses.
- Wave vs Xero: This is popular online accounting software for small businesses. Its competitor is for personal use.
- Wave vs Synder: This tool syncs e-commerce data with accounting software. Its alternative focuses on personal finance.
- Wave vs Easy Month End: This is a business tool to streamline month-end tasks. Its competitor is for managing personal finances.
- Wave vs Docyt: This uses AI for business bookkeeping and automation. The other uses AI as a personal finance assistant.
- Wave vs Sage: This is a comprehensive business accounting suite. Its competitor is an easier-to-use tool for personal finance.
- Wave vs Zoho Books: This is an online accounting tool for small businesses. Its competitor is for personal use.
- Wave vs Quicken: Both are personal finance tools, but this one offers more in-depth investment tracking. The other is simpler.
- Wave vs Hubdoc: This specializes in document capture for bookkeeping. Its competitor is a personal finance tool.
- Wave vs Expensify: This is a business expense management tool. The other is for personal expense tracking and budgeting.
- Wave vs QuickBooks: This is well-known accounting software for businesses. Its alternative is built for personal finance.
- Wave vs AutoEntry: This is designed to automate data entry for business accounting. Its alternative is a personal finance tool.
- Wave vs FreshBooks: This is accounting software for freelancers and small businesses. Its alternative is for personal finance.
- Wave vs NetSuite: This is a powerful business management suite for large companies. Its competitor is a simple personal finance app.
More of FreshBooks
- FreshBooks vs Puzzle IO: This software focuses on AI-powered financial planning for startups. Its counterpart is for personal finance.
- FreshBooks vs Dext: This is a business tool for capturing receipts and invoices. The other tool tracks personal expenses.
- FreshBooks vs Xero: This is popular online accounting software for small businesses. Its competitor is for personal use.
- FreshBooks vs Synder: This tool syncs e-commerce data with accounting software. Its alternative focuses on personal finance.
- FreshBooks vs Easy Month End: This is a business tool to streamline month-end tasks. Its competitor is for managing personal finances.
- FreshBooks vs Docyt: This uses AI for business bookkeeping and automation. The other uses AI as a personal finance assistant.
- FreshBooks vs Sage: This is a comprehensive business accounting suite. Its competitor is an easier-to-use tool for personal finance.
- FreshBooks vs Zoho Books: This is an online accounting tool for small businesses. Its competitor is for personal use.
- FreshBooks vs Wave: This provides free accounting software for small businesses. Its counterpart is designed for individuals.
- FreshBooks vs Quicken: Both are personal finance tools, but this one offers more in-depth investment tracking. The other is simpler.
- FreshBooks vs Hubdoc: This specializes in document capture for bookkeeping. Its competitor is a personal finance tool.
- FreshBooks vs Expensify: This is a business expense management tool. The other is for personal expense tracking and budgeting.
- FreshBooks vs QuickBooks: This is well-known accounting software for businesses. Its alternative is built for personal finance.
- FreshBooks vs AutoEntry: This is designed to automate data entry for business accounting. Its alternative is a personal finance tool.
- FreshBooks vs NetSuite: This is a powerful business management suite for large companies. Its competitor is a simple personal finance app.
Frequently Asked Questions
Is FreshBooks better than QuickBooks for small businesses?
FreshBooks is often simpler for service-based businesses and freelancers focusing on invoicing and time tracking. QuickBooks offers a broader range of features, suitable for more complex inventory or payroll needs. Your choice depends on your specific business structure.
Can I connect my Wave account to other software?
Yes, you can connect your Wave account to various other applications. This helps streamline your financial management by integrating with tools you already use. It enhances the overall functionality of your accounting process.
How does Wave compare to Xero?
Wave is known for its free core accounting features, making it ideal for budget-conscious small businesses. Xero offers a more comprehensive, paid platform with advanced features and integrations. Xero might suit growing businesses needing more robust tools than a basic wave account.
Is Zoho Books a good alternative to FreshBooks vs Wave?
Zoho Books is a strong contender. It offers a balance between Wave’s free core and FreshBooks’ invoicing focus, providing a comprehensive suite of features for various business sizes. It’s great for managing billable client work and recurring invoices.
Which software is best for freelancers?
For freelancers, FreshBooks excels with its strong invoicing, time tracking, and expense management. Wave is also a good free option. Both help manage your finances without needing an accountant, especially for tracking billable client hours and recurring invoices.
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