Wave vs Xero: which is better for a new business? (2026)
7.4/10
Wave
Free plan
Choose Wave if: Solo owners who want free invoicing and bookkeeping
Skip it if: You need inventory, time tracking, mileage tracking or a Spanish interface.
Visit Wave6.6/10
Xero
From $27/mo
Choose Xero if: Small teams that want unlimited users at one price
Skip it if: You want a free plan, Spanish, or over 20 invoices for $27.
Visit XeroQuick verdict
| Higher OwnerUnlocked score | Wave (7.4 vs 6.6) |
|---|---|
| Lower starting price | Wave (Free plan vs From $27/mo) |
| Better public ratings | Xero (3.7 vs 4.4 / 5) |
| More Spanish help | Tie (English only vs English only) |
Side by side
| Best for | Solo owners who want free invoicing and bookkeeping | Small teams that want unlimited users at one price |
|---|---|---|
| Skip if | You need inventory, time tracking, mileage tracking or a Spanish interface. | You want a free plan, Spanish, or over 20 invoices for $27. |
| Free plan or trial | Free plan | 1 month |
| Spanish | English only | English only |
| Support | Chat, email M-F 9am-4:45pm ET (Pro or any add-on) | 24/7 online support; callback on request |
| Mobile app | Yes | Yes |
| Public rating | 3.3/5 (Google Play, 23,630) | 4.4/5 (Google Play, 21,049) |
| Price | $0 (Starter); Pro $19/mo | $27/mo (Early); $5.40/mo first 3 months |
| Free plan | No bank auto-import; receipts $8/mo add-on; no extra users | No free plan |
| Users | Starter: owner only; Pro: multiple users | Unlimited (no per-user fees) |
| Invoicing | Unlimited on all plans | Early: 20 invoices; unlimited on Growing and up |
| Bank connection | Pro only (via Plaid) | Yes, all plans; auto-reconcile on Growing and up |
| Receipt capture | Pro; $8/mo add-on on Starter | Yes, Smart Document Capture, all plans |
| Mileage tracking | No (Driversnote integration on Pro) | Established only |
| Payroll add-on | $40/mo + $6 per employee or contractor paid | $36/mo + $6 per employee/contractor (Gusto) |
| Sales tax | Manual rates on invoices + sales tax report | Auto sales tax, all plans |
| Time tracking | No | Established only (projects) |
| Inventory | No | Up to 4,000 items; Inventory Plus add-on |
| Accountant access | Pro (admin, editor or viewer roles) | Yes, invite your advisor at no extra cost |
| 1099 contractors | 1099-NEC forms via Wave Payroll | W-9 collection and 1099 reports, all plans |
| Online payment fees | Cards 2.9% + 60¢ (Amex 3.4% + 60¢); ACH 1% ($1 min) | Stripe: cards 2.9% + 30¢; ACH debit 1% (max $9) |
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Wave
- Starter is free with unlimited invoices, estimates and bills.
- Pro adds automatic bank imports and unlimited receipt scans for $19/month.
- Pro waives the 60¢ card fee on the first 10 payments monthly.
- Payroll with tax filing in all 50 states: $40/month + $6 per worker.
- Wave is English-only; you can only type Spanish text on invoices.
- No built-in mileage, time tracking or inventory quantity tracking.
- Free Starter needs manual bank entry; automatic import requires Pro.
Xero
- No per-user fees: your whole team can log in on any plan.
- Sales tax, 1099 reports and receipt capture included even on Early.
- Tracks inventory for up to 4,000 items on every plan.
- Standard ACH payments to vendors are free on all plans.
- Early plan allows only 20 invoices and 5 bills.
- No published phone line; support is online with callbacks on request.
- English-only app; no Spanish interface found.
Also worth a look
Questions
Is Wave or Xero cheaper?
Wave starts lower: Free plan for Wave vs From $27/mo for Xero. Compare the plan you'd actually use, including add-ons.
Which has better reviews?
Xero, with 4.4/5 on average across the public ratings we checked.
Which one helps in Spanish?
Wave: English only. Xero: English only.
Can I switch from one to the other later?
Yes, though switching mid-year takes some setup. Export your records before you cancel, and check for annual contracts or cancellation notice periods.
Facts from each company's own pages and public rating sites, checked Oct 4, 2026. How we rate.