Small business owners must juggle multiple responsibilities to keep their operations running smoothly. Tracking finances and maintaining accurate records represents one of the most critical aspects of business management.
For small businesses with fewer than 10 employees, Wave Accounting software could be an ideal solution. This intuitive online accounting platform enables even those without accounting experience to manage their finances effectively.
Wave Accounting provides free tools for banking, invoicing, and essential accounting functions, with premium services available for businesses requiring additional support. If you’re evaluating accounting software options for your small business, this comprehensive Wave Accounting review will help you understand what the platform offers.
What is Wave Accounting?
Founded in 2010 by eight employees working in a shared workspace, Wave Accounting rapidly grew to serve 100,000 customers within its first year. Co-founders James Lochrie and Kirk Simpson aimed to develop a comprehensive money management solution specifically for small business owners.
This cloud-based accounting software stands out as one of the few genuinely free options available, enabling users to manage multiple accounting processes seamlessly.
The free service encompasses accounting, bookkeeping, and invoicing capabilities through integrated tools. Business owners can create and send unlimited customized invoices, track unlimited expenses, and scan unlimited receipts.
Even without accounting experience, users can generate reports, search transactions, and reconcile data. The cloud-based platform automatically calculates sales tax, delivers cash flow insights, and allows customizable payment terms.
Who is Wave Accounting Software best for?
Wave Accounting targets small businesses with fewer than 10 employees and freelancers. It streamlines double-entry accounting through user-friendly, cloud-based software.
Those new to accounting or financial management will appreciate Wave’s straightforward platform that simplifies complex processes.
Free Wave Accounting Software
Wave provides robust accounting software at no cost to users.
Here’s what the free Wave Accounting features include:
Invoicing
Create professional, brand-customized invoices with automated reminder capabilities. Accept payments via Apple Pay, credit card, and bank transfers that sync directly with invoices.
Accounting
Track unlimited income and expenses while adding unlimited partners, collaborators, and accountants to your account.
The dashboard provides an at-a-glance overview that supports quick decision-making, such as whether to adjust client rates. Connect unlimited bank and credit card accounts, plus access essential reports like “Profit and Loss” and “Overdue Invoices.”
Banking
Wave simplifies tax preparation by separating personal and business expenses. Enjoy instant payouts at no extra cost with a Wave bank account.
Wave debit card purchases are automatically logged and categorized. The mobile app enables check deposits and income tracking on the go.
Paid Wave Accounting Services
Wave’s free version delivers impressive functionality for double-entry accounting and beyond. The invoicing, accounting, and banking features extend well past basic accounting needs.
However, growing businesses may require advanced features. Here are Wave’s premium service options:
Payments
Beyond invoice creation, Wave’s payment services enable direct collection from clients. Accept payments through Apple Pay, bank deposits, and credit cards.
Eliminate manual payment entry with automatic syncing and dashboard updates for invoice payments.
Funds reach your connected bank account within 2 business days for US users or 1 business day for Canadian residents. Set up recurring billing and payments for retainer clients.
Wave’s usage-based fee structure includes:
- Credit Cards – 2.9% – $0.60 per transaction
- AMEX transactions – 3.4% +$0.60 per transaction
- Bank payments – 1% per transaction ($1 minimum fee)
Payroll
Wave’s payroll service streamlines payments to contractors and employees. Deposit paychecks directly into employee bank accounts with a single click.
Employees access paystubs and tax forms through a dedicated portal. Wave’s payroll pricing includes:
- Tax service states – $35 per month
- $6 per active employee (monthly)
- $6 per independent contractor (monthly)
- Self-service states – $20 per month
- $6 per active employee (monthly)
- $6 per active independent contractor (monthly)
Advisors
Need expert guidance for your accounting processes? Wave provides coaching and support through experienced professionals.
Wave advisors assist with bookkeeping, accounting, and payroll questions, offering tailored advice aligned with your business objectives. Access advisor support year-round.
Pricing for these services includes:
- Bookkeeping support – $149 per month
- Accounting and payroll coaching – $329 one-time fee (additional plans are available)
Wave Features
Wave’s comprehensive feature set includes:
- Tax Support
- Invoicing
- Estimates
- Client Portal
- Contact management
- Expense Tracking
- Chart of accounts
- Accounts payable
- Investors
- Time tracking (available with Wave Payroll)
- Reporting
How to Sign up for a Wave Account
Creating a free Wave Accounting account is straightforward. Click the free account button on Wave’s website, enter your email address, and create a password. Alternatively, sign up using your existing Google account.
Wave will request basic information including your name, business name, and industry.
Next, select your primary focus: creating customer statements, managing accounting, or handling payroll.
You can skip this question if uncertain about your immediate needs.
Based on your selection, Wave asks follow-up questions. For accounting-focused users, expect questions about current accounting methods, accountant relationships, and payroll requirements.
The entire setup process takes under 5 minutes. Once complete, you can configure Wave payments, create invoices, establish recurring billing, or activate payroll features.
Wave Accounting Pros and Cons
Pro: Free Business Finance Tool
Wave remains free unless you require credit card processing or payroll management. For small businesses with minimal staff, the free accounting features often prove sufficient.
Pro: Dashboard is visually appealing and useful
Wave’s attractive, intuitive dashboard provides business owners with actionable insights for improving cash flow management.
Pro: Support for multicurrency
Wave accommodates both U.S. dollars and Canadian dollars for international flexibility.
Pro: Great invoice and transaction management system
Wave excels in credit card processing and invoicing with comprehensive, well-designed tools.
Pro: Unlimited invoices, expenses, and receipts
No restrictions on expenses, receipts, or invoices eliminate concerns about system capacity limitations.
Pro: Robust reporting capabilities
Financial statements and reports are comprehensive and user-friendly, providing powerful tools for business management.
Pro: Easy to use
Wave requires no prior accounting knowledge, with software designed specifically for users with limited or no financial management experience.
Con: Not suitable for medium-large businesses
While excellent for micro-businesses and companies with fewer than 10 employees, Wave lacks the infrastructure to support larger organizations.
Con: Mobile app limitations
Though Wave Money (business banking) and Wave Invoicing apps exist, their mobile functionality remains restricted.
Con: Integration tools are poor
While Zapier integration provides access to over 1,000 add-ons including PayPal, Etsy, and Shoeboxed, the overall integration ecosystem remains limited.
Con: Slow customer Service
Customer support response times are frequently slow, with live chat or email support reserved only for paid services like Wave Payroll, advisors, and payment processing.
Con: Lacks additional functionality
While Wave Payments enables credit card acceptance, the platform lacks features like inventory management and time tracking that many businesses require.
Con: No Budgeting tools
Wave lacks budgeting functionality that could help small businesses better manage cash flow.
Con: Reporting limitations
The platform offers fewer financial reports than business owners typically need for comprehensive analysis.
Bottom Line: Wave Accounting Review
Micro businesses and small companies with fewer than 10 employees will find exceptional value in Wave’s free accounting software. The premium services provide useful additions for other business aspects. While Wave may not address every financial need, complementary solutions can fill any gaps.
