Wave Accounting vs Xero: Which Accounting Tool Is Better in 2026?
Wave Accounting
From $0Xero
From $15Quick verdict
Overall pick: Xero
Choose Wave Accounting if you are a solo founder or micro-business on a tight budget and can work without tax reporting, multi-currency, or API access. Choose Xero if you need those advanced features and are willing to pay a flat subscription starting at $15 per month. Wave wins on price, but Xero wins on feature completeness.
- Wave Accounting's entry plan ($0) is 100% cheaper than Xero's ($15).
- Wave Accounting has a free plan; Xero does not.
- Only Xero offers: tax reporting & sales tax calculation, multi-currency transactions, open api & integrations.
Cost calculator
| Tool | Monthly | Yearly |
|---|---|---|
| Wave Accounting · flat | $0.00 | $0 |
| Xero · flat | $15.00 | $180 |
Based on entry-level paid plans. Prices change, so check the vendor before you buy.
Which one should you choose?
| If you need… | Pick | Why |
|---|---|---|
| Solo entrepreneur with no budget for software | Wave Accounting | Wave has a free plan with a starting price of $0, while Xero starts at $15 per month with no free plan. |
| Business that needs to handle multiple currencies | Xero | Xero supports multi-currency transactions; Wave does not. |
| Company requiring tax reporting and sales tax calculation | Xero | Xero includes tax reporting; Wave does not offer this feature. |
| Growing business that needs to connect other tools via API | Xero | Xero has an open API and integrations; Wave does not. |
| Micro-business that only needs core accounting and invoicing | Wave Accounting | Wave covers bank reconciliation, invoicing, expense tracking, payroll integration, and mobile app for free, matching Xero on these core features at no cost. |
Feature comparison: Wave Accounting vs Xero
| Feature | ||
|---|---|---|
| Free plan | ✅ | ❌ |
| Starting price | $0 /mo | $15 /mo |
| Automatic bank reconciliation | ✅ | ✅ |
| Custom invoices & recurring billing | ✅ | ✅ |
| Receipt capture & expense tracking | ✅ | ✅ |
| Tax reporting & sales tax calculation | — | ✅ |
| Multi-currency transactions | — | ✅ |
| Native payroll or 1-click sync | ✅ | ✅ |
| Mobile iOS / Android app | ✅ | ✅ |
| Open API & integrations | — | ✅ |
Highlighted rows are where the tools differ.
Pros and cons
Wave Accounting
- Free plan with a starting price of $0, ideal for budget-conscious micro-businesses.
- Includes core features: automatic bank reconciliation, custom invoicing, expense tracking, payroll integration, and a mobile app.
- Flat pricing model with no per-seat charges.
- Lacks tax reporting and sales tax calculation.
- Does not support multi-currency transactions.
- No open API or integrations.
Xero
- Offers tax reporting, multi-currency transactions, and an open API.
- Includes all core features plus advanced capabilities.
- Flat pricing starting at $15 per month, with unlimited users on higher tiers.
- No free plan; requires a paid subscription starting at $15 per month.
- May be more expensive for solo entrepreneurs compared to Wave's free offering.
Which tool would you pick for your stack?
Cast your vote to see real-time peer recommendations from other software buyers.
At a glance
Free accounting and invoicing software for solo entrepreneurs.
Founded 2010 · From $0 · 5/8 tracked features
Best for: solo founders, budget-conscious micro-businesses
See Wave Accounting alternatives →Beautiful cloud accounting software designed for growing small businesses.
Founded 2006 · From $15 · 8/8 tracked features
Best for: growing businesses, unlimited users on higher tiers
See Xero alternatives →FAQ
Is Wave Accounting cheaper than Xero?
Yes, Wave Accounting has a free plan with a starting price of $0, while Xero starts at $15 per month with no free plan.
Does Wave Accounting support multi-currency transactions?
No, Wave Accounting does not support multi-currency transactions, whereas Xero does.
Which tool offers tax reporting?
Xero offers tax reporting and sales tax calculation; Wave Accounting does not.
Do both tools have a mobile app?
Yes, both Wave Accounting and Xero offer mobile apps for iOS and Android.
Which tool has an open API?
Xero has an open API and integrations; Wave Accounting does not.
Related comparisons
- FreshBooks vs Wave Accounting
- FreshBooks vs Xero
- QuickBooks Online vs Wave Accounting
- QuickBooks Online vs Xero
- Sage Business Cloud vs Wave Accounting
- Sage Business Cloud vs Xero
Data last reviewed: pending verification. All Accounting tools →