Xero VS Wave

Choosing accounting software is hard enough. But when you are stuck comparing apples to oranges, what do you do? Wave and Xero are two cloud-based accounting programs, but they definitely stem from their own separate trees.

Xero is a robust accounting solution that rivals QuickBooks in terms of capability and popularity. It’s been around since 2006 and offers strong accounting, 800+ integrations, access for unlimited users, and an impressive feature selection. Although the company says it makes “small business” software, the depth of features and steep pricing are much more suitable for mid to large-sized businesses.

Wave, on the other hand, is completely designed with the small business in mind. The software is easy to use and is full of features like invoicing, contact management, personal and business expense tracking, and even lending. But what makes this option even more appealing is the price. Wave is completely free. Really; there’s no catch.

So, when you have two very different software options designed for two distinct audiences on opposite ends of the pricing spectrum, how do you decide which will be the most fruitful for your company? Well, that’s what we’re here to tell you.

At Merchant Maverick, our goal is to help you to find the best software for your small business needs. To make your decision easier, we’ve carefully researched and tested both products. We’ll put Xero and Wave head to head by comparing features, pricing, customer experience, reputation, and more, so you don’t have to.

Don’t have time to read the whole post? Or looking for a different accounting option? Check out our top-rated accounting solutions to see our favorite recommendations.

Accounting

Winner: Xero

Both software programs offer a detailed chart of accounts, a bank reconciliation feature, and the basic accounting reports you need to run your business. However, Xero comes out victorious because it has far more reports and offers depreciation schedules.

Features

Winner: Xero

On paper, the two programs look very similar, but what the chart doesn’t show is the depth of the features available with Xero.

While Wave offers an incredible number of features and a few unique touches — like lending and a brand new eCommerce tool called Checkouts — Xero’s features are more developed. Xero offers invoicing, expense tracking, complex contact management, inventory, 55 reports, and class tracking.

To be fair, Wave does offer more attractive invoice templates than Xero.

Pricing

Winner: Wave

Xero offers three pricing plans ranging from $9-$60/mo. While there is a small and relatively cheap Xero plan available, limitations on invoices and bank transactions render this plan almost useless to small business owners, especially in comparison to Wave.

Wave is completely free — no catches, no gimmicks, and no artificial limits on features. This price point is particularly appealing if you look back at the features chart and realize how many of the same features you are getting for $0/mo. If you run a small business, Wave is definitely the better option; Xero can actually be quite spendy. (For mid-large size businesses, the cost may not matter as much, but for small business owners trying to stay afloat, every penny counts.)

Hardware & Software Requirements

Winner: Tie

As cloud-based software apps, both Wave and Xero are compatible with nearly any device, so long as you have an internet connection.

Users & Permissions

Winner: Xero

No matter which plan you’re using, Xero boasts unlimited users, which is almost unheard of in the accounting software world. Xero also offers strong user permissions. Since Wave is designed for the small business owner, there are no extra users, although you can grant “collaborators” access to your account with very basic permissions.

Ease Of Use

Winner: Wave

Here is where Wave shines. Wave is incredibly easy to use. The software is quick to learn and simple to set up. Because Xero is more detailed, it takes a little longer to get used to. Tedious .csv imports also make the setup process a long one for Xero users.

Mobile Apps

Winner: Xero

While Xero users and Wave users both complain about the prospective mobile apps, Xero takes the cake in this category by offering one all-encompassing mobile app. Wave doesn’t offer an all-in-one app. Instead, you have to download two separate apps: Receipts by Wave and Invoice by Wave. The company also recently got rid of its Payroll by Wave app, leaving users calling out for a better, fully-featured mobile app.

Customer Service & Support

Winner: Tie

It used to be that Xero offered great customer service, but as of late, the company is dropping the ball in this regard. Long waits for email responses and no phone support leave customers waiting and waiting for answers. While there is a detailed help center as well as many other support resources, there isn’t a good way to get a quick response.

With Wave, you also are looking at a day for email responses. Phone support is available but only for payroll and payment processing users. Regular users will have to work with Wave’s help center, blog, and email support.

Negative Reviews & Complaints

Winner: Tie

Both companies can stop holding their breath over which unlucky software wins this section. Both Xero and Wave are generally loved by their users. Reviews are positive overall, and a similar number of complaints can be found for both companies.

Positive Reviews and Testimonials

Winner: Tie

Xero has more positive reviews, simply because it has been around for longer. However, the ratio between positive and negative reviews is similar for both companies. Xero and Wave receive high praise from their users across multiple review platforms, which is a plus for both software companies.

Xero users appreciate the software’s strong accounting, feature set, number of integrations, and unlimited users. Wave users love its ease of use, invoicing, feature selection, and of course, its price.

Integrations

Winner: Xero

Both Xero and Wave integrate with Zapier, an add-on that connects your software with 750+ applications. However, in addition to Zapier, Xero boasts 800+ integrations, as opposed to Wave’s three.

Security

Winner: Xero

Ordinarily, this section results in a tie, but Xero has set itself apart in terms of security. Both Wave and Xero use data encryption and redundancy, as well as physical security measures at their prospective data centers. However, Xero performs regular security audits and boasts an unheard-of record of 99.97% uptime.

To learn more about cloud security read our articles Is My Accounting Safe in the Cloud? and What is SSL? A First Look at Online Security.

And the Overall Winner Is…

This might be our toughest match-up yet. In terms of features, accounting, and integrations, Xero is clearly the winner. But while Xero has proved itself to be the superior software in theory, Wave may sometimes be the best choice in practice.

Wave is ideal for small businesses in need of basic accounting and beautiful invoicing. The free pricing structure of Wave is almost unbelievable. For companies looking to save money, or that are not quite ready for the in-depth features of Xero, Wave is a brilliant choice. Wave is also ideal for Etsy sellers since the software offers a strong Etsy integration and allows you to separate personal and business expenses.

For mid- to large-sized businesses, or businesses looking for a scalable software that will grow with their company, Xero is the best choice. This software boasts incredibly detailed and robust features and unparalleled uptime, as well as ample integrations and positive customer reviews. If you are looking for strong accounting capabilities, Xero won’t let you down. If you choose to go with Xero, check out our free How To Set Up Your Xero Account guide to learn how to optimize your account.

Whichever you choose — Xero, Wave, or even something else altogether — our comprehensive reviews can help you make an informed decision during your hunt for the perfect accounting software.

Read our full Xero and Wave reviews for more information. After doing your research, be sure to take each app for a test run, and feel free to reach out with any questions you have along the way.