Welcome to Startup Savant’s comparative Xero vs Wave Accounting article where we breeze through their commonalities, differences, service packages and pricing to help you determine which, or if either, account software solution is right for your platform. Enjoy!
10 Features Xero & Wave Share in common
- To assist you in managing your business, Xero and Wave Accounting both provide useful learning resources including webinars, video tutorials, guides, e-books and a lot more.
- Cloud-based programs compatible with almost any device and operating system so you can access them anytime you want. No clunky software downloads.
- Bill every second of your work hours through time tracking tools.
- Sync your bank and credit/debt card info and transactions with your accounts through their bank reconciliation feature.
- Both have multi-currency support.
- Designed for all types of business professionals from entrepreneurs and consultants, to freelancers and accountants.
- Has great expense tracking tools so you can clearly see where outbound money is flowing..
- Invoicing tools allow you to create invoices and send them to clients for fast billing. Both also have bill and invoice reminders.
- Financial reports, balance sheets, sales tax reports and many other documents are automatically generated.
- Has forecasting and budgeting features.
Some Distinct Xero Features
- Supports multiple-user interface so you can share your files with your team or accountant and collaborate.
- Easily convert your QuickBooks files through Xero’s free QuickBooks conversion tool.
- Has an inventory management feature that updates you of your transactions and incurred expenses.
- Gives you the option to create your own schedule of expenses.
- Has a dashboard that basically stores everything about your financial status.
- Allows you to customize your invoices, Wave Accounting lacks this feature.
Where Wave Accounting Excels
- Wave Accounting is totally free, you don’t have to pay for anything.
- Provides you with a “Get Started Guide” so learning how to use the software won’t be difficult.
- Offers premium tools which you can add at an affordable price.
Pricing & Packages: Xero vs Wave Accounting
So as you can see both options have a fair amount to offer with their own unique approaches to accounting software solutions. Let’s jump right into the way they package their services so you can really see the difference. You’ll know which is best for your needs within a minute or so.
Xero has 3 accounting plans: Starter, Standard and Premium. Aside from their feature-wall, what you can skipp to is looking at the extras you get included in the Standard and Premium. If those don’t apply then for a mere $6 and change you can get up and running in no time at all.
All three plans have a free trial, which is an advantage for those who are in the process of choosing accounting software which is a nice bonus. Also, keep in mind that the prices shown above are based on the US market, plan pricing will vary depending on your location.
A Quick Look Inside Xero
Now let’s use the following screenshots to dig in and give you an idea of what it might feel like to use and integrate Xero into your everyday business lifestyle. As you can see it’s versatile, clean, and tidy from top to bottom.
Create Custom Invoices
Store and Manage Your Files
Manage Bills & Keep up on Cash flow
Track Your Small Business Expenses
Create & Send Custom Purchase Orders
Wave Accounting pricing
This is where things get easy. It’s completely free and that’s no gimmick. Where costs come in is when you need more services, or better services and choose to upgrade into their more premium features.
Wave Accounting’s 3 core premium services are shown below with their corresponding price tags.
Integrating a payroll system is important if you have employees and Wave Accounting offers this for $19 every month. Want to add a credit card system into your account? The fee per transaction is 2.9% + 30 cents. Like the payroll system, the premium support is priced at $19 per month.
Which Should You Choose?
Based on the information and screenshots above, which one feels better suited to your current needs? While Xero is far more extensive and comprehensive, Wave Accounting is simpler, more streamlined and easier to jump right into. What’s most important though is that you get the best tools to help you grow and manage financials, so be sure to do your homework and research until you’re satisfied.
Our #1 Pick
Startup Savant uses Xero to manage our financials and we couldn't be happier. We feel the software is very easy to use, integrate, and implement. Wave Accounting has it's merits as well though. Either way, here's to a prosperous year ahead!
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