What is Wave Accounting?
Wave is a free cloud accounting platform designed for small businesses, freelancers and sole traders. It provides double-entry accounting, invoicing, expense tracking, bank reconciliation and financial reporting — all completely free. Wave makes money from optional add-on services like payroll and payment processing.
For small business owners and accountants who find QuickBooks and Xero expensive, Wave is the obvious starting point. The free tier genuinely covers the core accounting needs of a business under $1M revenue. The AI-powered receipt scanning (Wave Receipts app) is also free, making expense management simple.
👍 Pros
- ✅ Core accounting is completely free forever
- ✅ Double-entry bookkeeping included
- ✅ Unlimited invoices and expense tracking
- ✅ Bank connection and reconciliation free
- ✅ Mobile receipt scanning app also free
👎 Cons
- ❌ Payroll is a paid add-on
- ❌ Fewer integrations than QuickBooks or Xero
- ❌ No inventory management
- ❌ Customer support is limited on free plan
- ❌ Better for simple businesses than complex accounting needs
Wave Accounting Pricing 2026
Accounting
$0
forever
Invoicing · Bookkeeping · Reports · Bank connections
Payroll (US)
$20
per month + $6/employee
Full payroll · Tax filings · Direct deposit
Payments
2.9% + 60¢
per transaction
Accept credit cards · Bank transfers
* Pricing subject to change. Always check Wave Accounting's website for current rates.
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Frequently Asked Questions
Is Wave Accounting really free?
Yes — Wave's core accounting software (invoicing, bookkeeping, reporting, bank connections) is completely free forever. Payroll and payment processing are paid add-ons, but the accounting core has no cost.
Is Wave good enough for a small business?
For most small businesses under $1M revenue — yes. Wave covers invoicing, expense tracking, bank reconciliation and financial reports. It lacks inventory management and some integrations that growing businesses need.
How does Wave compare to QuickBooks?
Wave is free; QuickBooks starts at $35/mo. QuickBooks has more integrations, better inventory management and stronger reporting. For simple bookkeeping needs, Wave is more than sufficient. Upgrade to QuickBooks when your needs outgrow Wave.