Xero vs Wave: Which is better in 2026?
A side-by-side comparison of pricing, features, and use cases to help you decide between Xero and Wave.
Beautiful accounting software for small business
Free accounting and invoicing for small businesses
Head-to-head comparison
| Feature | Xero | Wave |
|---|---|---|
| Starting price | $15/mo | Free/mo ✓ Cheaper |
| Free plan | ✗ No | ✓ Yes |
| Pricing model | paid | freemium |
| G2 rating | 4.3/5 | 4.4/5 ↑ |
| Capterra rating | 4.4/5 | 4.5/5 |
| Founded | 2006 | 2009 |
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
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
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
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
Our verdict
Xero and Wave 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.
Xero vs Wave: frequently asked questions
Is Xero better than Wave?
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, Xero or Wave?
Wave is cheaper, starting at Free/mo.
What is the main difference between Xero and Wave?
Xero focuses on invoicing, bank reconciliation, expense claims. Wave focuses on invoicing, accounting, expense tracking. Both serve similar use cases but differ in approach and pricing model.
Can I migrate from Xero to Wave?
Most teams migrate between Xero and Wave within a day or two. Export your data from Xero (typically as CSV or via API), then use Wave's import wizard to bring it across. Check each tool's help centre for a step-by-step migration guide before switching.