Small Business Accounting Software Start for Free

Before you commit to accounting software, it’s in your best interest to shop around and compare all your options. Unlike QuickBooks and FreshBooks, Wave Accounting is completely free to use. It can allow you to manage all your accounting processes without paying a dime. It’s also intuitive so you don’t need to be an accountant to use it successfully. Similar to other reputable cloud-based accounting software products, Wave encrypts the data you share with it and monitors its server facilities 24/7.

• Though it offers accounting functionality at no cost, Wave isn’t for businesses requiring budgeting, time tracking, job management, and more industry-specific features.
• So, scroll down to find out if Wave is right for your business, or use the links on the right to jump to specific sections.
• However, the free plan still offers unlimited invoices, bills, and bookkeeping records, making it a solid option for those with basic accounting needs.
• If you’re looking to gain a firmer grasp of your business’s finances, Zoho Books offers excellent budget management features for as low as $15 per month.

One of the most helpful features of Wave is its tax filing feature. Wave now integrates directly with H&R Block to help you file your taxes. You can file yourself with assistance or have your taxes filed for you. Join the thousands of people like you already growing their businesses and knowledge with our team of experts. We deliver timely updates, interesting insights, and exclusive promos to your inbox.

FreshBooks Review: Features, Pros, Cons

If that’s the case, Wave Accounting will likely live up to your expectations. Its invoicing and online payment acceptance features can help you get paid while its reporting and money management tools ensure you stay on track for tax season and future business growth. Wave allows you to search transactions, design accounting reports and reconcile data across other Wave products. Plus, you can calculate sales tax automatically, customize payment terms and enjoy access to easy-to-understand cash flow insights. It also features a well-laid-out, clutter-free dashboard with individual tabs for sales, purchases, accounting, banking, payroll and reports.

Its free features make it a valuable tool for managing finances without high costs. Zoho Books also has a time tracker, multiple-currency support, inventory tracking, project management, and CRM. The best part is that it has a free plan that you can use forever. With Wave Accounting, you can accept payments online via bank deposit, credit card (Visa, Mastercard, and American Express), and Apple Pay. While each transaction has a processing fee, it’s not more than 3% (detailed pricing below in Pricing section). The software allows you to set sales tax rates based on where you operate your business and automatically calculate tax on any invoice, bill, or transaction.

QuickBooks also integrates with a wide range of partner apps and software, making it very flexible to your specific needs. We also took our expert’s view into accounting when calculating our star ratings. However, businesses with complex needs or those operating outside the US and Canada might need other alternatives.

The benefits of Wave accounting software are unlimited invoices and income tracking, financial reporting, double-entry accounting, invoicing, and more. Wave allows you to import transactional data from your bank account or credit card. Then, you can categorize and analyze your banking data to extract cash flow insights and ascertain your business’s financial status.

Accounts receivable

If you’re a startup, micro-business or sole proprietor who doesn’t want to invest in accounting software but needs to keep track of your finances, Wave Accounting is a great option. As long as you’re content with basic features and don’t see yourself expanding in the foreseeable future, you’ll find this completely free, easy-to-use software particularly appealing. Since you don’t have to pay anything to get started, it’s certainly worth trying out. Wave also offers a free app to help you manage your invoices on the go. With Wave Invoicing, you’ll be able to track, edit, send and pay invoices from any mobile device.

Pricing Plans

In addition, Wave allows you to manage multiple businesses on one free account and uses double-entry accounting, which is ideal for accountants and tax time. Securing a category score of 7/10, Wave’s accounts payable features are well above average. Users can use the tool to track bills and expenses, record payments in multiple currencies, and scan bills. However, unlike QuickBooks and Zoho Books, businesses using the software can’t set recurring bills or create purchase orders, making it harder for them to manage finances automatically. Unfortunately, this prevents Wave from scoring any higher in this category.

• Both solutions offer add-on modules for running payroll that incur an additional monthly fee.
• Since Wave only has one accounting plan, though, it’s not perfect for business owners who want to add accounting features as they grow.
• Payroll for Tax Service States is $40 per month, and payroll for Self Service States is $20.
• Wave Accounting does a lot for the price—but it can’t do everything.
• It allows you to create and track purchase orders and fixed assets.

Spend more time on what you love

If you want more in-depth support, accountants and payroll coaches are available starting at $379 per month. NerdWallet independently reviews accounting software products before determining our top picks. We collect the data for our software ratings from products’ public-facing websites and from company representatives.

Have an eye on the big picture so you can make better business decisions. Our robust small business accounting reports are easy to use and show month-to-month or year-to-year comparisons so you can easily identify cash flow trends. Considering Wave is completely free, with no trials or hidden fees in sight, its value offering is extremely impressive. The Online Payments feature allows users to get paid quickly via bank deposit, credit card, and Apple Pay.

While you can check out articles on Wave’s knowledge base, you won’t be able to connect with a live person who can talk you through any accounting software problems. If you’re a small business owner in search of free, cloud-based accounting software, Wave Accounting is worth considering. This is particularly true if you don’t have much accounting experience and would like an easy-to-use, fully functional tool. It’s one of the only truly free options on the market and can allow you to manage your accounting processes in one convenient place.

Discover effective customer retention strategies to grow your business. Your transactions can also be synced with Wave, FreshBooks, QuickBooks, or Xero easily, saving you time on manual entry. If your business works regularly with international clients, a Wise Business account could save you time and money while doing so. Before committing yourself to Wave, here’s a summary of what some other accounting providers have to offer.

Its expense, income and cash-flow tracking features are perfectly suited to freelancers, solopreneurs and other self-employed individuals who want to keep their accounting software expenses low. Wave’s invoicing is free and unlimited, with customizable templates and a user-friendly interface, putting it on par with some of the best invoicing software solutions for small businesses. Pro plan capabilities include recurring invoicing and the option to let repeat clients opt into automatic credit card billing. This free, easy-to-use accounting software is great for small businesses, especially for eCommerce, but lacks in project management, budgeting, and inventory tracking. Its accounting software enables you to manage cash flow and makes your accountant’s life easier(see Wave Accounting alternatives).

After this, you will have access to the web version of the software. Then, you can generate reports to gather valuable insights for better decision-making and to monitor your business finances. To learn more about how we rate and review our software, including how we calculate star ratings for each brand we review, read our software review methodology overview. With everything in one place, there’s no need to endlessly research solutions or stare at spreadsheets until your eyes glaze over.

Optional advisory services

Wave Accounting is a comprehensive financial management solution designed to empower current and aspiring small business owners. Launched in 2010 by co-founders Kirk Simpson and James Lochrie, Wave provides an all-in-one platform for managing finances with ease. Its key offerings include unlimited invoicing, financial transaction processing, and free bookkeeping services. Wave is a free, cloud-hosted accounting software that lets you track income and expenses, reconcile your bank accounts, snap photos of receipts, and send professional-looking invoices in a few clicks. This platform also provides customers with basic financial reporting and automated payment reminders. In the past, Wave generated revenue from its credit card processing, wave online accounting Wave Payroll, and bookkeeping services.

Higher-tier QuickBooks Online plans include bill tracking, project profitability data, inventory management, employee expense tracking and more. Users of Wave’s paid and free plans can both access receipt scanning, though only paid users can opt for free receipt scanning. In either case, Wave Accounting’s mobile app lets you capture unlimited receipts and import them in bulk in batches of up to 10 receipts. NerdWallet’s accounting software ratings favor products that are easy to use, reasonably priced, have a robust feature set and can grow with your business. The best accounting software received top marks when evaluated across 10 categories and more than 30 subcategories. FreshBooks has an excellent mobile app that allows you snap photos of receipts, send invoices and track mileage.

Until recently, Wave was best-known for its completely free accounting solution. As of 2024, Wave has introduced a second paid plan that gives small businesses the option to scale up with Wave as they grow. If you have a question or issue, you can browse the help center or reach out to Mave, the automated chatbot. If you do want live support, you’ll need to invest in an Advisor or paid service. After providing a few basic details about your business — name, type, currency you use, address — you’ll have instant access to your account.