Wave Accounting Review — Why I Switched (and Why I Switched Back)

Summary

Wave Accounting is a cloud-based platform designed for freelancers and small business owners to manage invoicing, payments, and bookkeeping without complexity. Offering a free plan with unlimited invoicing, estimates, and basic bookkeeping tools, it also provides a mobile app for invoicing on the go. The Pro plan, at $16/month, adds advanced features like bank transaction auto-import and receipt tracking. While not suited for large businesses, Wave is ideal for small service-based operations looking for a cost-effective, user-friendly solution to handle finances.

Takeaways

• 💼 Wave Accounting is a cloud-based, budget-friendly accounting platform designed primarily for freelancers and small business owners.
• 🌐 The software runs entirely in a web browser, requiring no installation or complex setup.
• 🧾 Wave’s free Starter plan includes unlimited invoicing, estimates, basic bookkeeping, and customer management.
• 📱 A mobile app is available, allowing users to create and send invoices on the go.
• 💳 Clients can pay invoices directly online using credit cards or bank transfers, improving cash flow convenience.
• 🤖 The Pro plan adds automation features such as automatic bank transaction imports, smart categorization, and receipt scanning.
• ⏰ Automated late payment reminders are included in the Pro plan, helping reduce overdue invoices.
• 📊 Wave handles core accounting needs well but lacks advanced features like deep financial reporting, inventory management, or large-team payroll.
• 🏢 The platform is best suited for solo operators and small service-based businesses rather than complex or rapidly scaling companies.
• 💰 The Starter plan is free, with transaction fees of 2.9% + 60¢ per credit card payment and 3.4% + 60¢ for American Express.
• 💵 The Pro plan costs $16 per month and includes all Starter features plus enhanced automation tools.
• ⭐ Overall, Wave Accounting is a strong entry-level accounting solution that nails the essentials without a high price tag.

Q & A

What is Wave Accounting and who is it designed for?

Wave Accounting is a cloud-based accounting platform designed for freelancers and small business owners. It helps with managing finances, invoicing, payments, and bookkeeping all in one place, without the need for complex setups or installations.

What are the main features of Wave's free plan?

The free plan includes unlimited invoicing and estimates, recording bills, managing cash flows, tracking customers, and a mobile app for invoicing on the go. It also supports online payments via credit card or bank transfer.

What are some of the automation tools available in Wave's Pro plan?

The Pro plan adds automation tools such as auto-importing bank transactions, smart categorization, sending automated late payment reminders, and the ability to scan and upload receipts for tracking expenses.

Is Wave suitable for large teams or businesses that need advanced features?

No, Wave is not built for large teams or businesses requiring advanced inventory management, payroll for large teams, or deep financial reporting. It is best suited for small service-based businesses or solo operators.

What are the pricing plans for Wave Accounting?

Wave offers two pricing plans: the Starter plan, which is free, and the Pro plan, which costs $16 per month. The Starter plan includes unlimited invoicing and basic bookkeeping tools, while the Pro plan adds automation features and receipt tracking.

What transaction fees are associated with Wave's payment system?

Wave charges a transaction fee of 2.9% + 60 cents per credit card payment and 3.4% + 60 cents for American Express (AMX) payments.

What are the advantages of using Wave Accounting for small businesses or freelancers?

Wave is a strong option for small businesses and freelancers because it offers professional invoicing, payments, and bookkeeping tools at no cost (with the free plan). It’s user-friendly, cloud-based, and allows invoicing on the go with a mobile app.

Does Wave scale well for growing businesses?

Wave may not scale well for larger or more complex businesses. While it handles the basics effectively, it lacks some advanced features needed for bigger teams or more complicated financial management.

Can Wave be used for managing payroll?

Wave does not support payroll for large teams in its basic plans. However, it can handle basic payroll features through its paid plan in some regions, but it’s not designed for large-scale payroll management.

What makes Wave different from other accounting software?

Wave stands out due to its free pricing plan, ease of use, and focus on freelancers and small businesses. Unlike many competitors, it offers robust invoicing and bookkeeping features without requiring an expensive subscription, making it ideal for those just starting out.