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Most buyers should pick Xero.
Choose Wave if you want a free bookkeeping starting point and can live with paid extras: Pro is $19 monthly or $190 yearly, while payroll starts at $25/month on Starter. Choose Xero if you need connections to 1,000+ apps, AI assistance, or broader plan options; it starts at $7/month, but Lite caps invoices and quotes at five. Xero also offers a 30-day trial. Compare plan caps and add-on costs before switching.
01Side by side
| Wave | Xero | |
|---|---|---|
| Starting price | $0 Starter; Pro $19 monthly or $190 yearly | $7/month Lite; 30-day trial |
| Free plan | Yes: Starter | No |
| Best for | Small businesses seeking basic bookkeeping | Sole traders through established businesses |
| Core strength | Bookkeeping, invoicing, payments, and payroll | Accounting, AI tools, and app connections |
| Learning curve | Not published on the vendor's site | Not published on the vendor's site |
| Integrations and data | Pro imports bank transactions; app count unpublished | Connects with 1,000+ apps |
| Team and seat costs | Payroll from $25/month; $40 on Pro | Expense claims from $4/month; seat pricing unpublished |
| Support | Advisor support; review support score 5.5 | Review support score 5 |
Wave Choose Wave if
- Choose Wave if you want a free basic bookkeeping plan.
- Choose Wave if you need invoicing and estimates in one place.
- Choose Wave if bookkeeping or payroll help is worth the added cost.
Xero Choose Xero if
- Choose Xero if you need connections to 1,000+ apps.
- Choose Xero if AI assistance and business insights matter.
- Choose Xero if Lite's five-invoice cap fits your needs.
02Pricing compared
Wave is the lower-cost starting point: Starter is free, while Xero starts at $7 per month. The trade-off is limits and extras. Wave Starter includes unlimited invoices, estimates, bills and bookkeeping records, but card payments cost 2.9% + $0.60 (Amex: 3.4% + $0.60). Pro is $19 monthly or $190 yearly, equivalent to $15.83 per month. Payroll starts at $25 monthly on Starter and $40 on Pro.
Xero Lite costs $7 monthly and caps invoices and quotes at five. Starter is $32, Standard $54 and Premium $82 per month; the listed limits include 20 invoices and quotes on Starter. Xero lists a 30-day trial and an 80% discount for new customers’ first three months. Its pricing page lists monthly billing, not annual billing. Check payment fees and add-ons before comparing headline prices.
03Features and depth
Wave covers core small-business bookkeeping, invoicing, estimates, receipts, payments and payroll. Starter includes unlimited invoices, estimates, bills and bookkeeping records; Pro adds bank transaction imports, transaction categorization, digital receipt capture and late-payment reminders. Online payments are available, with fees, and Wave also offers bookkeeping and accounting help through Advisors. Payroll and some receipt features cost extra.
Xero’s plans add more defined capacity tiers. Lite includes bank reconciliation, reports and five invoices and quotes; Starter raises that cap to 20 and adds five bills and a 30-day cash-flow forecast. Standard adds a 60-day forecast and bulk reconciliation, while Premium includes a 180-day forecast and multiple currencies. Xero also lists AI assistance through JAX and connections to more than 1,000 apps. Some functions cost extra: auto-reconciliation is an optional $5 monthly on Starter, and expense claims start at $4 monthly. Wave suits a simple, low-cost start; Xero offers more stated plan tiers and app connections, but check caps and add-ons.
04Ease of use and learning curve
Neither product’s published materials give setup times or enough detail to rank learning curves, so we would not treat either as proven easier. Wave’s free Starter plan includes mobile invoicing and core bookkeeping records, which makes it possible to begin without a subscription. Its paid add-ons and payment fees still need checking.
Xero offers a 30-day trial, but its entry-level Lite plan limits invoices and quotes to five. That cap may matter quickly if you send invoices regularly; Starter raises it to 20. Both products describe mobile features, and Xero says it connects to more than 1,000 apps. Choose based on the workflows and limits you need, rather than assuming the lower starting price means less setup or fewer decisions.
Questions people ask
How is Wave different than QuickBooks?
The published information does not include QuickBooks pricing or features, so it cannot support a full comparison. It does show Wave has a free Starter plan with unlimited invoices and bookkeeping records, while Pro costs $19 monthly or $190 yearly. Check QuickBooks’ current plans and limits before switching.
Why is Xero declining?
The information here does not establish that Xero is declining, or provide usage, revenue or customer-trend data to explain a decline. It covers Xero’s plans, features and listed prices only. Its pricing page lists a 30-day trial, plans from $7 monthly and connections to more than 1,000 apps.
What are people replacing QuickBooks with?
The published information does not include survey data or user reports about what people replace QuickBooks with. Wave and Xero are two options to compare, but that does not show either is a common replacement. Compare your required features, plan caps, payment costs and add-ons before switching.
Do accountants prefer QuickBooks or Xero?
The published sources do not report accountant preferences, so we cannot say whether accountants prefer QuickBooks or Xero. Xero’s listed features include bank reconciliation and connections to more than 1,000 apps; Wave offers bookkeeping help through Advisors. Ask your accountant which workflows and integrations your business needs.