Wave Accounting Review Features, Pros & Cons

It’s simple and clear, featuring cash flow and profit and loss charts, a breakdown of what you owe and what is owed to you, your net income and an expenses breakdown. For freelancers and small businesses, that’s pretty much everything you need to keep on top of your finances. Clicking on a link takes you to more detailed information about that specific figure or transaction.

Once you have customers, you can start to create invoices, recurring invoices and estimates. You can’t pay bills through Wave as you can in Intuit QuickBooks Online, but you can record them, mark them as paid, and track the status of your payables. Wave now uses optical character recognition (OCR) technology to read photos of receipts taken with a smartphone and turn them into categorized transactions. It worked in testing, though the app detects receipts and snaps photos so quickly sometimes that you only get a partial image.

We’ve developed an internal case study to evaluate accounting software across 13 different categories based on a common set of facts and functions. The graph below shows how Wave scores across each category compared with two of its competitors, Zoho Books and QuickBooks Online Plus. We provide a detailed explanation of the scores in the Features section. The market is stacked with competitive accounting software options though, so check out our comparison page to see how the best of the best compare side by side. Wave is a streamlined accountancy platform that likes to keep things simple. However, it secured a terrible score of 0/10 for advanced features and completely lacks budgeting tools, making it completely unsuitable for businesses that need a one-size-fits-all solution.

  1. The free financial management software is user-friendly and equipped with all the basics, including income and expense tracking, bank connections, invoicing and reporting.
  2. While it doesn’t have as many features as paid competitors like QuickBooks Online, Wave’s unlimited expense tracking, free invoicing, and basic reporting make it an ideal solution for many freelancers.
  3. Wave offers a handful of optional add-on services for an additional fee.
  4. If the customer accepts the estimate, it can be easily converted to an invoice.
  5. There’s no option to set up two separate classes or locations, which can be difficult if your company has different locations or offers several classes of products or services.

As a free service, it is a good option for freelancers, entrepreneurs and small business owners who would like to keep their overhead low. Wave’s inventory management feature is very basic, so if you’re a product-based business, you should consider alternatives like QuickBooks Online or Xero. You can add a product or service, but not the quantity purchased or sold. This means that Wave can’t calculate your COGS, which is important if you deal with inventory.

Benefits of using Wave

In addition, QuickBooks offers a more robust feature set and report customization than Wave. Regarding running payroll, both solutions wave accounting reviews offer add-on modules that incur an additional monthly fee. Finally, Wave connects to H&R Block, while QuickBooks connects to TurboTax.

Wave’s invoices are easy to customize with your business’s logo, colors and contact information (Figure A). If Wave isn’t a good fit for you, read through our article on the year’s best free accounting software. The article kicks off with Wave, but it includes reviews for nine other free bookkeeping programs that you might prefer. Compared with free software like Wave, QuickBooks plans are expensive.

Wave Accounting at a glance

Setup is simplicity itself, and does not require any kind of proficiency in bookkeeping or accounting. After sign up Wave presents you with a series https://business-accounting.net/ of options depending on what you want to do first. Choose invoicing and you can be sending your first request for payment in a couple of minutes.

Wave Accounting plans and pricing

Still, some accounting programs are more user-friendly than others, and Wave Accounting is among the easiest for first-time business owners to configure. Finally, Wave’s billing, payment acceptance, and invoicing features all work together to ensure you get paid on time. In other words, Wave has many of the invoicing perks you get with invoice-heavy software like FreshBooks, but at no cost.

Financial statements, a sales tax report, customer report, and an aged receivables report are also available, as is an aged payables report and account balances report. If you’re self-employed, you probably won’t need Wave Payroll, but Wave Payments can help you get paid a lot faster, since it allows your customers to pay you directly from the invoice that you email them. Wave is a safe accounting option for businesses and uses standard best security practices including data encryption and regular data backups with secure servers. For a free software program, Wave boasts an impressive, robust feature set that rivals even some paid accounting software programs.

How Much Does Wave Charge Per Transaction?

For those looking to ditch physical documents, the software will let you backup your businesses receipts, too. This will allow your organization to keep important transaction data in the cloud, and make it easier to keep up with legal requirements. We chose Wave over other products based on the reviews and the easy process of setting up our business. You can also get it as a mobile app to take pictures of receipts and upload them, send reminders for invoices you have out.

In 3+ years I don’t think I’ve had to contact support once, nor have I ever considered switching to other tools. It is one of the few software tools I use regularly where I am happy to open it, and I’m happy to give them their percentage. Not only would I recommend Wave to freelancers and small businesses, I have recommended it. You can access any of Wave’s features from the vertical menu bar on the left side of the screen.

If you’re a startup, micro-business or sole proprietor who doesn’t want to invest in accounting software but needs to keep track of your finances, Wave Accounting is a great option. As long as you’re content with basic features and don’t see yourself expanding in the foreseeable future, you’ll find this completely free, easy-to-use software particularly appealing. Since you don’t have to pay anything to get started, it’s certainly worth trying out. Wave also offers a free app to help you manage your invoices on the go. With Wave Invoicing, you’ll be able to track, edit, send and pay invoices from any mobile device. In addition, Wave allows you to manage multiple businesses on one free account and uses double-entry accounting, which is ideal for accountants and tax time.

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