Xero vs Wave
Last updated July 6, 2026
Deciding between Xero and Wave? Here's how they stack up on price, fit and migration effort — so you can pick the right accounting software tool without second-guessing.
Pricing disclaimer: All prices are list prices in USD, shown for general information only as of July 6, 2026, and may have changed since. Plans, tiers and features vary by region and are frequently updated by each vendor. Nothing here is financial, legal or purchasing advice — always confirm current pricing and terms on the provider's official website before you buy.
| Xero | Wave | |
|---|---|---|
| Starting price | $25/mo (Early) | Free |
| Free tier | — | Yes |
| Best for | Established users on its plans | Freelancers and sole proprietors who want to stop paying a monthly accounting fee. |
| Migration effort | — | Easy |
| Rating | — | 4.1 ★ |
Why teams switch from Xero
- ✕The entry Early plan is tightly capped — limited invoices and bills per month push active businesses onto the $55/mo Growing plan fast.
- ✕No native US payroll — you have to bolt on Gusto, adding cost and a second system.
- ✕Prices have risen steadily; the Established plan is now $90/mo.
- ✕Support is largely email/online with no easy phone line, which frustrates users who want to talk to someone.
Where Wave wins
- ✓No monthly fee to start
- ✓Simple for non-accountants
- ✓Solid invoicing
…and where it doesn't
- ✕No inventory tracking
- ✕Limited reporting depth
- ✕Thin support on free tier
The verdict on Wave
If Xero's Early plan feels like too much money for how little you invoice, Wave is the zero-cost escape hatch. Core accounting and invoicing are free forever, monetized through payment and payroll fees. For a one-person business that just needs to track income and expenses and send clean invoices, it covers the essentials without a subscription. The ceiling is real — no inventory, basic reporting, and you'll outgrow it if your books get complex — but as a free landing spot for a very small business leaving Xero, it's excellent. Because most Xero-to-Wave movers are simplifying, migration is usually easy.
Try Wave freeWhat real users say: Xero vs Wave
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Frequently asked questions
Is Wave cheaper than Xero?
Wave starts at Free, including a free tier, compared with Xero from $25/mo (Early). Starter plan free (accounting & invoicing); Pro $16/mo adds auto-import and more. Payments/payroll charged per use. Verified Jul 6, 2026.
Is it hard to migrate from Xero to Wave?
Migration difficulty is rated Easy. Because most Xero-to-Wave movers are simplifying, migration is usually easy.
Who should choose Wave over Xero?
Wave is best for: Freelancers and sole proprietors who want to stop paying a monthly accounting fee. If that describes your situation, it's a strong Xero alternative.
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