Wave

Wave is a completely free accounting and invoicing platform designed for small businesses, freelancers, and entrepreneurs with under 10 employees. Unlike competitors charging $30-100/month, Wave offers unlimited invoicing, expense tracking, receipt scanning, bank connections, and financial reporting at no cost — monetizing instead through optional paid add-ons (payment processing, payroll). With over 400,000 active businesses using the platform, Wave proves you don't need to pay monthly fees for professional accounting software if you're willing to use Wave's payment processing or handle payments yourself.

Best For

Bootstrapped businesses and freelancers who want professional accounting without monthly software fees. Wave is ideal for:

• Freelancers and solopreneurs sending invoices, tracking expenses, and preparing for tax time
• Service businesses (consultants, contractors, coaches) without inventory or complex needs
• Side hustles and part-time businesses where paid software feels premature
• Startups conserving cash and minimizing recurring expenses
• Nonprofits on tight budgets needing free accounting and donation tracking
• Businesses comfortable with limitations (no time tracking, no project tracking, no purchase orders)

Wave shines when you value free over features and your business is straightforward: send invoices, track expenses, run basic reports. Complex businesses with inventory, multi-user workflows, or advanced needs eventually outgrow Wave and upgrade to QuickBooks or Xero.

How does Wave's free accounting work?

Bank connections link to your accounts and automatically import transactions. Categorize spending manually or let Wave's AI suggest categories based on patterns. Income and expense tracking maintains profit & loss statements, showing where money comes and goes. Chart of accounts organizes finances using standard accounting categories. While Wave handles double-entry bookkeeping behind the scenes, the interface stays simple for non-accountants.

What about invoicing? Create professional invoices with your logo, payment terms, and line items. Send via email and accept payments via credit card or bank transfer (Wave Payments — Wave's paid add-on at competitive rates). Track invoice status and send reminders for overdue payments. Recurring invoices automate billing for retainer clients. Estimates convert to invoices when accepted. Completely unlimited — send as many invoices as you want with no caps or fees (unless using Wave Payments).

How does receipt scanning work? Mobile app lets you snap photos of receipts, and Wave extracts vendor, amount, and date via OCR. Attach receipts to expenses for organized records at tax time. Unlike competitors charging for this feature, Wave includes it free with unlimited scans.

What reporting exists? Essential reports including profit & loss, balance sheet, sales tax summary, and invoice reports. Dashboard shows income vs. expenses, outstanding invoices, and recent transactions. Reports are simpler than QuickBooks/Xero but sufficient for most small businesses and tax preparers. Export reports to PDF or Excel for sharing with accountants.

Pricing & Plans

• Wave Accounting: $0/month - Unlimited invoices, unlimited users, unlimited bank connections, receipt scanning, financial reports, no hidden fees
• Wave Payments: 2.9% + $0 per credit card transaction, 1% per bank payment (ACH, minimum $1) - Accept payments directly on invoices
• Wave Payroll: $20-40/month base + $6/employee or contractor - Run payroll, file taxes, W-2s, 1099s (available in US, Canada)

Note: Wave Accounting is permanently free. You can use free accounting without paying for Payments or Payroll. Payment processing rates are competitive with Stripe/Square. Payroll pricing varies by state/province.

Getting Started

1. Sign up at waveapps.com (free forever, no trial limitations or credit card)
2. Connect your bank accounts for automatic transaction imports
3. Create your first invoice and send to clients
4. Scan receipts with mobile app as you incur expenses
5. Review transactions and categorize income/expenses monthly
6. Run reports for tax time (profit & loss, sales tax) to share with accountant

Wave provides help docs, video tutorials, and email support to help you get started.

Limitations

• No time tracking built-in - need external tool or manual invoice line items
• No inventory management - not suitable for retail or product-based businesses
• No purchase orders - can't manage purchasing workflows like larger platforms
• Limited automation - no advanced workflows or custom rules like QuickBooks
• No multi-currency support - USD/CAD only; international businesses need paid alternatives
• Email support only - no phone or chat support (though community forum is active)
• Payment processing somewhat required - while not mandatory, Wave's business model assumes most users will use Wave Payments
• No accountant collaboration features - can export reports but can't grant accountant login access like Xero/QuickBooks

Wave trades advanced features for zero monthly cost, making it ideal for small, simple businesses but eventually outgrown by companies with complex needs, multiple users, or significant revenue.