Wave
Starter free; Pro $19/mo or $190/yr.
- Free Starter
- Pro $19/mo
- Invoicing
Business
Xero vs Wave: which accounting software?
Short version: Wave is better for freelancers and very small businesses, with a free Starter plan for invoicing and accounting. Xero is better once you have a team or a bookkeeper who needs access, since every plan includes unlimited users.
Wave Starter is free; Pro is $19 a month or $190 a year and adds automation like bank-transaction import. Xero plans are Early $27, Growing $59 and Established $97 a month, all with unlimited users; Early is limited to 20 invoices and 5 bills a month.
Based on IRS · QuickBooks pricing · Xero US pricing +1 more
Which one should you buy?
Xero
Unlimited users; Early $27, Growing $59, Established $97/mo.
- Unlimited users
- From $27/mo
- Clean UI
Prices are official list prices as of October 2026 and can change. Links on this page go to official sites with no affiliate tag. How we choose.
The short answer: Wave if you want free accounting for a one-person business. Xero for teams, more invoices and integrations like Gusto payroll.
This is a focused guide. For the full category with every pick, read the best accounting software for small business.
Xero vs Wave: side by side
Swipe the table sideways to see both →
| Spec | Best freeWave | Best for teamsXero |
|---|---|---|
| Price | Starter free; Pro $19/mo | Early $27, Growing $59, Established $97/mo |
| Free plan | Yes | No (trial) |
| Users | Collaborators supported | Unlimited |
| Invoicing | Yes | Yes (Early: 20/mo) |
| Payroll | Payroll add-on (some states) | Gusto integration (US) |
| Best for | Freelancers, very small businesses | Teams with many users |
| Plans | See plans | See plans |
Why pick Wave?
Wave’s free Starter plan covers invoicing, expense tracking and basic accounting, which is plenty for many freelancers and side businesses.
Payment processing has fees, and it isn’t built for inventory or growing teams.
Great if you
- Freelance or run a side business
- Want free
Skip it if you
- Need inventory or advanced reports
- Have a growing team
Key specs
- Starter
- Free
- Pro
- $19/month or $190/year
- Payments
- Processing fees apply
WavePrices are list prices on each official site as of October 2026; taxes, promotions and renewals vary. These are not affiliate links.
See plans on the official site Why pick Xero?
Every Xero plan includes unlimited users, so partners, managers and your bookkeeper can log in at no extra cost.
Early’s 20-invoice and 5-bill monthly limits are tight; most active businesses need Growing at $59.
Great if you
- Need many users
- Like a clean interface
Skip it if you
- Send many invoices on a tiny budget
Key specs
- Early
- $27/month (20 invoices, 5 bills)
- Growing
- $59/month
- Established
- $97/month
- Users
- Unlimited
XeroPrices are list prices on each official site as of October 2026; taxes, promotions and renewals vary. These are not affiliate links.
See plans on the official site How to choose between Xero and Wave
Count invoices per month and the people who need access.
Price
Wave Starter is free; Xero starts at $27.
Users
Xero includes unlimited users.
Volume
Xero Early caps invoices at 20 and bills at 5 a month.
Payroll
Xero integrates with Gusto in the US; Wave offers payroll in some states.
WavePrices are list prices on each official site as of October 2026; taxes, promotions and renewals vary. These are not affiliate links.
See plans on the official site Xero vs Wave: common questions
Is Wave really free?
The Starter plan is free; payment processing has fees, and Pro is $19 a month.
Is Xero better than Wave?
For teams and growing businesses, yes. For a freelancer, Wave’s free plan is hard to beat.
How much does Xero cost?
Early $27, Growing $59 and Established $97 a month (US list prices, October 2026).
Does Xero have a free plan?
No, but it offers a trial.
How we compared them
We compared Xero and Wave official US pricing pages and IRS recordkeeping guidance as of October 2026.
We have not hands-on tested these products; we compare published specifications, independent measurements and manufacturer documentation, and we update this page when models change. Read the full methodology.
What sources did we use?
- IRS: recordkeeping for small businesses (accessed October 23, 2026)
- QuickBooks pricing (accessed October 23, 2026)
- Xero US pricing (accessed October 23, 2026)
- Wave pricing (accessed October 23, 2026)