Wave vs Xero: Which is better in 2026?
A side-by-side comparison of pricing, features, and use cases to help you decide between Wave and Xero.
Free accounting and invoicing for small businesses
Beautiful accounting software for small business
Head-to-head comparison
| Feature | Wave | Xero |
|---|---|---|
| Starting price | Free/mo ✓ Cheaper | $15/mo |
| Free plan | ✓ Yes | ✗ No |
| Pricing model | freemium | paid |
| G2 rating | 4.4/5 ↑ | 4.3/5 |
| Capterra rating | 4.5/5 | 4.4/5 |
| Founded | 2009 | 2006 |
Wave: pros & cons
- ✓Core features are free
- ✓No limits on invoices or clients
- ✓Easy to use
- ✓Good for freelancers
- ✗Payment processing fees
- ✗Less powerful than QuickBooks
- ✗US & Canada focused
- ✗Limited integrations
Xero: pros & cons
- ✓Clean, modern UI
- ✓Excellent bank feeds
- ✓Strong accountant ecosystem
- ✓Good for non-US businesses
- ✗Starter plan very restrictive
- ✗Can be pricey for full features
- ✗Payroll limited to some countries
Choose Wave if...
- →You're a freelancer or sole trader who needs professional invoicing and basic bookkeeping without paying a monthly subscription
- →Your side business or early-stage startup needs proper double-entry accounting and bank reconciliation at zero cost
- →You send a small number of invoices each month and want unlimited invoice creation with online payment acceptance built in
Choose Xero if...
- →You're a UK, Australian, or New Zealand small business that wants cloud accounting with bank feeds that reconcile automatically every day
- →Your accountant uses Xero and you want real-time collaboration on books, payroll, and year-end without emailing spreadsheets
- →You deal in multiple currencies and need automatic exchange rate updates built into invoices and expenses without add-ons
Our verdict
Wave and Xero are closely matched on user ratings. Wave is the more affordable option. Wave offers a free plan — a lower-risk way to test before committing. The right pick depends on your team size and workflow.
Wave vs Xero: frequently asked questions
Is Wave better than Xero?
Wave has a higher G2 score (4.4/5 vs 4.3/5). The best tool depends on your specific use case and budget.
Which is cheaper, Wave or Xero?
Wave is cheaper, starting at Free/mo.
What is the main difference between Wave and Xero?
Wave focuses on invoicing, accounting, expense tracking. Xero focuses on invoicing, bank reconciliation, expense claims. Both serve similar use cases but differ in approach and pricing model.
Can I migrate from Wave to Xero?
Most teams migrate between Wave and Xero within a day or two. Export your data from Wave (typically as CSV or via API), then use Xero's import wizard to bring it across. Check each tool's help centre for a step-by-step migration guide before switching.