Wave Accounting vs FreshBooks: Which is Better for You?

Wave Accounting vs FreshBooks: Which is Better for You?

She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications.

  • Wave offers basic accounting features, including invoicing, a dashboard, and expense tracking, as well as a few additional things like payroll and a business bank account.
  • The software includes only basic payroll features like paycheck calculation, direct deposit, access to one payroll report and end-of-year W-2 form generation.
  • The best option for you in terms of pricing would depend on your needs and plans.
  • To help you in this search, we’ve created a series of comparison articles to quickly break everything down.
  • Switching from WaveApps, spreadsheets or a different accounting software?

Most users find that FreshBooks has a wide array of features although some feel that the bank reconciliation tool lags in performance. Some users also find that they cannot include attachments to invoices. Overall, FreshBooks is an effective bookkeeping tool worth the price. The software also lets you connect your bank account or credit card, importing transactions automatically and categorizing them into tax-friendly groups. Wave’s receipt scanning tool is handy, but you’ll need to use the web browser to upload receipts since the mobile app doesn’t support this feature. All businesses should use accounting software to manage invoices, track finances, and prepare for tax season.

FreshBooks has one of the easiest invoicing features across accounting software tools. The first time you log onto the interface, FreshBooks will walk you through the process of creating and sending your first invoice. Wave uses its native Wave Payments service for payment processing that lets your customers pay with major credit cards directly from the invoice. It also supports digital wallet payments via Apple Pay and recurring billing for clients on retainer. Although both apps have strong income and expense tracking features, FreshBooks has a slight lead. The software lets you assign expenses to customers, a feature that’s not available in Wave.

Wave Accounting pricing and plans

FreshBooks ensures your financial records always follow HMRC’s guidelines. Stay on top of your tax records while taking the stress out of preparing and filing your end-of-year returns. Online Accounting Software is indispensable to serious entrepreneurs, but it can be difficult (and time consuming) to figure out the perfect fit for you and your company’s needs. To help you in this search, we’ve created a series of comparison articles to quickly break everything down. This round is a tie as both solutions are supported on multiple browsers.

FreshBooks is a cloud-based accounting software for freelancers and small businesses. It offers features for invoicing clients, inventory three-way matching management, business reports, and others. FreshBooks integrates with third-party software to generate advanced accounting reports.

Both FreshBooks and Wave are designed for freelancers and sole proprietors, though FreshBooks offers a little more wiggle room for those who may want to add an employee or two. If you plan on remaining a sole proprietor, Wave is a good fit for you. However, if your business plans include growth, it may not be the right option. With its easy-to-use and intuitive interface, FreshBooks is ideal for those entering the business world for the first time who know absolutely nothing about accounting. FreshBooks was originally designed with the sole proprietor in mind, making it a good fit for service professionals such as attorneys, architects, plumbers, designers, and anyone who works solo. But with four plans available, FreshBooks can also be used by growing businesses.

Freshbooks Offers Much More Than Invoicing to Help With Your Day-to-Day Accounting

For instance, here’s how much you’ll pay for FreshBooks’ cheapest plan, FreshBooks Lite, with extra users. Find the perfect plan to support your business by visiting our pricing page. Log your team’s hours and add them to invoices, automatically.

User Sentiment Summary

FreshBooks is a great entry-level accounting software for freelancers and very small service-based businesses. It doesn’t have advanced features, but what it lacks in power it makes up for in usability and accessible customer support. FreshBooks offers invoicing, expense tracking, time tracking, project management, payments, and accounting reports. FreshBooks pricing starts at $15 per month for basic features and tops out at $50 per month.

Time tracking

For users of Wave’s Payroll, Payments, Advisors, or Banking services, email support and live chat with Mave are available on weekdays from 9 a.m. Mobile apps are evaluated based on their ability to perform certain tasks like invoicing, online payment processing, and expense receipt capture. Both FreshBooks and Wave allow users to create income statements, cash-flow statements, balance sheets, as well as sales and tax reports. FreshBooks offers the ability to customize reports on some plans (Plus, Premium, and Select) but Wave doesn’t offer custom reporting on any plans.

Collaborate Faster With Your Team and Clients

If you want to skip our detailed analysis, you can go directly to the 5 Best Online Accounting … Our reviewers evaluate products and services based on unbiased research. At Business.org, our research is meant to offer general product and service recommendations. We don’t guarantee that our suggestions will work best for each individual or business, so consider your unique needs when choosing products and services. We’re firm believers in the Golden Rule, which is why editorial opinions are ours alone and have not been previously reviewed, approved, or endorsed by included advertisers. Editorial content from The Ascent is separate from The Motley Fool editorial content and is created by a different analyst team.

User-friendly interfaces, complete with dashboards and drag-and-drop features, make these software solutions accessible even for novices. With plans starting at $15 a month, FreshBooks is well-suited for freelancers, solopreneurs, and small-business owners alike. FreshBooks and Wave have comparable integrations but FreshBooks offers more.

Additionally, the main page includes shortcut functions like the +New button to help you execute certain tasks easily, such as creating a new invoice and adding a new customer or bill. The left menu bar contains all the core features of FreshBooks, including Banking, Sales, Cashflow, Expenses, Projects, and Payroll. However, FreshBooks Premium and its Select plans add project accounting tools that include employee labor calculations and project-specific expensing, which Wave doesn’t offer. Businesses with limited needs should pick Wave, while those that can benefit from an expanded set of features should opt for FreshBooks Premium.

Best for Additional Features: FreshBooks

The top features included with FreshBooks are invoicing, receipt capture, and project tracking. For a full description of what FreshBooks has to offer, check out the full FreshBooks review. FreshBooks partners with Gusto for payroll processing, with plans starting at $39 + $6 per person monthly fee. This feature ensures that all your revenue streams are accounted for.

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