Wave Financial vs Xero: Which One Fits Your Solo Dev Stack?
Free tier limits, real costs for 1-10 users, and honest "not for" warnings. The Solo Dev decision guide for Wave Financial vs Xero.
⚡ Quick Verdict
Xero edges ahead with a 4.4/5 rating. However, the best choice depends on your team size, budget, and workflow needs. Read on for the full breakdown.
💰 Cost by Team Size
| Team Size | Wave Financial | Xero |
|---|---|---|
| Solo (1 user) | $0/mo | $15/mo |
| Small (5 users) | $0/mo | $42/mo |
| Growing (10 users) | $0/mo | $78/mo |
| Free Tier | ✅ Completely free accounting, invoicing, and receipt scanning. Unlimited invoices and clients. Unlimited users. | ❌ No |
Pricing Plans
| Plan | Wave Financial | Xero |
|---|---|---|
| Free Plan | ✅ Yes | ❌ No |
| Free | $0/mo | $15/mo |
| Pro (Payments) | $0/mo | $42/mo |
Feature Comparison
| Feature | Wave Financial | Xero |
|---|---|---|
| Accounting | ★★★★☆ | ★★★★★ |
| Invoicing | ★★★★☆ | ★★★★☆ |
| Reporting | ★★★☆☆ | ★★★★☆ |
Pros & Cons
Wave Financial
✅ Pros
- 100% free accounting and invoicing — no catch
- Unlimited invoices, clients, and users on free plan
- Double-entry accounting with bank connections
- Receipt scanning via mobile app
- Professional invoice templates
❌ Cons
- No inventory management
- Limited integrations (no Zapier, limited API)
- Payment processing fees are higher than Stripe (2.9% + 60¢)
- No time tracking or project management
- Customer support is limited on free plan
Xero
✅ Pros
- Best multi-currency accounting — ideal for international businesses
- Unlimited users on all plans (QuickBooks charges per user)
- 1000+ third-party app integrations
- Beautiful, modern UI that non-accountants can use
- Strong in UK, Australia, NZ with local payroll/tax
❌ Cons
- Starter plan limited to 20 invoices/month
- US payroll requires third-party add-on (Gusto)
- Less widely used by US accountants than QuickBooks
- Some advanced features require Premium plan
- No built-in time tracking
Who Should Use What?
✅ Choose Wave Financial if...
- You are a freelancers who want free accounting
- You are a side hustlers and micro-businesses
- You are a non-technical users needing basic bookkeeping
🚫 Skip if...
- Growing businesses needing advanced features
- Teams needing payroll integration
- Businesses with inventory
✅ Choose Xero if...
- You are a international businesses with multi-currency needs
- You are a uk/au/nz-based small businesses
- You are a teams wanting unlimited users without per-seat pricing
🚫 Skip if...
- US businesses with a QuickBooks-trained accountant
- Freelancers with few invoices (Wave is free)
- Very small businesses (Starter's 20 invoice limit is tight)
🏆 Our Verdict
Both Wave Financial (4.3/5) and Xero (4.4/5) are excellent tools in their category. Xero takes a slight edge overall, but the best choice ultimately depends on your team's specific needs, budget, and existing tool ecosystem.
Frequently Asked Questions
Is Wave Financial better than Xero?
It depends on your needs. Wave Financial excels in some areas while Xero has its own strengths. Read our full comparison above to see which tool fits your specific requirements.
How does Wave Financial pricing compare to Xero?
Wave Financial starts at Free / $0/mo, while Xero starts at $15/mo. Both offer different value propositions — check our pricing comparison section for a detailed breakdown.
Can I migrate from Wave Financial to Xero?
Yes, most B2B tools offer data import/export features. Xero typically provides migration guides and sometimes even dedicated support for switching from Wave Financial.
Which is easier to use, Wave Financial or Xero?
Ease of use depends on your team's experience and workflow preferences. We evaluated both tools on usability — see our feature comparison scores above for details.
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