Wave Accounting

What Is Wave?

Wave is a cloud-based financial management platform designed to simplify accounting for small businesses and freelancers. Launched by Wave Financial in 2009, it offers core bookkeeping and invoicing features at no cost, lowering the barrier to professional financial management. Wave’s intuitive dashboard centralizes all transactions, enabling users with minimal accounting experience to maintain accurate books and stay organized.

Pros and Cons

Pros

• Completely free for core accounting and invoicing
• Unlimited invoices, expense entries, and bookkeeping records
• Automated bank and credit card import with reconciliation
• Built-in receipt scanning via mobile app
• Optional pay-as-you-go online payments accelerates cash flow

Cons

• Payroll only available in the US and Canada at extra cost
• Usage-based fees for payments and payroll services
• Lacks advanced inventory and project accounting features
• No offline mode; requires internet access

Who It’s For

Wave is ideal for:

• Freelancers & Consultants needing professional invoices and expense tracking without subscription fees.
• Micro-businesses that require core accounting and automated bank reconciliation at minimal cost.
• Start-ups & Solopreneurs seeking an easy-to-use platform before scaling to enterprise solutions.
• Remote & Distributed Teams leveraging cloud access and mobile receipt capture on the go.

Invoicing

Create fully branded invoices with logos, custom fields, and payment terms. Set up recurring invoices and automatic reminders to ensure timely client payments.

Expense Tracking

Upload or scan receipts via the Wave mobile app. Transactions from linked bank and credit card accounts import automatically and can be categorized in one click.

Double-Entry Accounting

Maintain balanced books with Wave’s built-in ledger. Every transaction posts debit and credit entries, enabling accurate profit & loss statements and balance sheets.

Receipt Scanning

Capture and upload receipts using your smartphone camera. Wave extracts date, vendor, and amount data automatically, reducing manual entry and errors.

Bank Reconciliation

Link unlimited bank and credit card accounts. Wave imports transactions daily and suggests matches to recorded entries, streamlining reconciliation.

Financial Reporting

Generate real-time profit & loss reports, balance sheets, cash flow statements, and customizable date ranges to monitor financial health and support tax preparation.

Online Payments

Enable Wave Payments to accept credit cards (2.9% + $0.60 per transaction) and ACH bank payments (1% per transaction). Payments sync automatically with accounts receivable.

Payroll (US & Canada)

Process employee payroll with automated tax calculations, direct deposit, and year-end forms. Payroll pricing starts at a base fee plus per-employee charges; available only in eligible regions.

Multi-Currency Support

Create invoices and record transactions in multiple currencies. Wave applies real-time exchange rates and tracks gains or losses for accurate reporting.

Customer Portal

Clients access a secure portal to view and pay invoices, track payment history, and update payment methods without needing Wave login credentials.

Pricing

• Core Accounting & Invoicing: Free
• Payments: 2.9% + $0.60 per credit card transaction; 1% per ACH payment
• Payroll (US): $35 + $6/employee per month; (Canada): CA$35 + CA$6/employee per month
• Multi-Currency & Integrations: Included in free plan
• Optional Add-Ons: Priority support and professional bookkeeping services available at additional fees

Verdict

Wave Accounting offers an exceptional free solution for micro-businesses and freelancers, covering all essential bookkeeping and invoicing needs without subscription costs. Its seamless bank connections, receipt scanning, and double-entry accounting deliver accuracy and time savings. While payroll and payment processing incur usage-based fees and advanced features (like inventory management) are limited, Wave remains the go-to platform for small operations seeking powerful, no-cost accounting.