Head to head · Accounting

Xero vs Wave

Xero gives you real double entry accounting, unlimited users on every plan and a deep app marketplace. Wave gives you genuinely free core accounting and invoicing, which is hard to beat for freelancers and very small teams. Here is how they compare, and which one fits your books.

Reviewed by M. HALLORAN·Updated JUNE 2026·How we vet
★ Our pick
Xero
90 /100
vs
Challenger
Wave
88 /100
◂ Xero Advantage Wave ▸
Xero leads on depth, seats and scale · Wave wins outright on price for the smallest teams.

These are affiliate links marked rel=“sponsored”. We may earn a commission if you buy · it never affects our scores or who wins. Disclosure.

How they score

Criteria Xero Wave Winner
Ease of use
86
88
Wave
Reporting depth
88
70
Xero
Value for money
80
96
Wave
Scales with you
90
62
Xero
Bank reconciliation
90
76
Xero
App ecosystem
90
60
Xero

Scores are our editorial assessment against the VettedSaaS rubric · not vendor supplied.

Choose Xero if…
+You want unlimited users without per seat fees
+You expect to grow past basic books and invoicing
+You rely on a deep third party app marketplace
+You want strong bank reconciliation and multicurrency
Choose Wave if…
+You are a freelancer or side business watching every dollar
+You mainly need invoicing and simple bookkeeping
+You want unlimited income and expense tracking for free
+You can add payroll or payments only when you need them

Feature by feature

✓ full  ·  ∼ partial  ·  — none
Capability Xero Wave
Free plan Starter
Unlimited users every plan collaborators
Built in inventory Established
Multicurrency Established
Built in payroll via Gusto add on
Built in invoicing
Deep app marketplace

Feature support verified as of June 2026 · check the vendor for current details.

Pricing, side by side

Per month, US list price
Xero Our pick
Early $25
Growing $55
Established $90
Wave Challenger
Starter $0
Pro $19
Payroll add on from $40

Pricing as of June 2026 · check the vendor for current pricing. Xero US plans run $25, $55 and $90 a month with unlimited users on every tier; new customers often get a heavy intro discount. Wave Pro is $19 a month, or about $16 a month billed annually; payroll runs from $40 a month plus a per employee fee, and card payments cost 2.9 percent plus 60 cents per transaction.