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.
Xero
Beautiful accounting software for small business
From $15/mo
No free plan
Wave
Free accounting and invoicing for small businesses
From Free/mo
Free plan available
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
Pros
- ✓Clean, modern UI
- ✓Excellent bank feeds
- ✓Strong accountant ecosystem
- ✓Good for non-US businesses
Cons
- ✗Starter plan very restrictive
- ✗Can be pricey for full features
- ✗Payroll limited to some countries
Wave: pros & cons
Pros
- ✓Core features are free
- ✓No limits on invoices or clients
- ✓Easy to use
- ✓Good for freelancers
Cons
- ✗Payment processing fees
- ✗Less powerful than QuickBooks
- ✗US & Canada focused
- ✗Limited integrations