Xero vs Wave
A head-to-head comparison for 2026 -- pricing, features, and which is better for different use cases.
Quick Comparison
| Feature | Xero | Wave |
|---|---|---|
| Price | $15/mo | Free |
| Free Plan | 30-day trial | Yes (full product) |
| Payroll | Built-in (Gusto add-on US) | Add-on ($40/mo) |
| Invoicing | Yes | Yes |
| Bank Feeds | Yes | Yes |
| Best For | Global / multi-currency | Solo businesses + side hustles |
Xero -- Overview
Xero delivers professional accounting at $15/month with unlimited users, multi-currency, and 1,000+ integrations. The interface is clean and the feature set covers everything from invoicing to financial reporting. Bank reconciliation is fast and accurate.
Xero is the value leader among paid accounting platforms. At half the price of QuickBooks with unlimited users included, it's the smart choice for cost-conscious businesses that need real accounting features.
Wave -- Overview
Wave is the free option that actually works. Invoicing, bank connections, receipt scanning, and financial reports at zero cost. No subscription, no trial period, no feature countdown. Wave makes money from optional payment processing and payroll services.
The trade-off for free is a smaller feature set. Fewer integrations, simpler reporting, and limited automation compared to Xero. But for businesses whose accounting needs are straightforward, Wave covers the essentials without any monthly cost.
Key Differences
$15/month vs $0/month. Xero is better in features, integrations, and polish. Wave is free. The question is whether Xero's advantages are worth $180/year for your business.
Unlimited users on both. Both Xero and Wave support multiple users at their price points (Xero's $15/month, Wave's $0). This is an advantage both hold over QuickBooks, which charges per user.
The growth question. Wave works well for stable, simple businesses. Xero scales better as complexity grows -- more integrations, better reporting, stronger multi-currency. If your business is growing and will need more sophisticated accounting, starting with Xero avoids a migration later.
The Verdict
Choose Xero for professional accounting with room to grow, unlimited users, and 1,000+ integrations at $15/month. Choose Wave for free accounting that covers the basics. Start with Wave if budget is tight; upgrade to Xero when you need more power.