FreshBooks vs Wave: Features & Comparison in 2023

FreshBooks and Wave have many similar features, such as the ability to send unlimited invoices and track unpaid bills. Both have a lot to bring to the table, but FreshBooks has the edge in terms of project accounting, invoicing, and customer service.

While it charges a low monthly fee that starts at $15, Wave’s bookkeeping software, which includes invoicing, bill tracking, and receipt scanning, is completely free. Wave is a great choice for businesses on a budget with basic needs while FreshBooks is ideal for service businesses needing to assign time and expenses to customers.

FreshBooks vs Wave at a Glance

When To Use

Fit Small Business Case Study

We compare FreshBooks and Wave head-to-head in our case study to help you make the right choice. We compare these two accounting solutions across 11 key categories, such as general features, accounts payable (A/P), accounts receivable (A/R), and banking and cash management. We’ve done in-depth research so that it’s easier for you to find out which program is suited better for your business. Check out our detailed FreshBooks review and Wave review for more information.

FreshBooks vs Wave: Pricing

FreshBooks offers four plans, and each has specific inclusions and the option to purchase add-ons, such as more team members. There are additional fees incurred for credit card processing, which are 2.9% plus 30 cents per transaction for most cards and 3.5% plus 30 cents per transaction for American Express.

All plans include one user with the option to add additional users for $10 per month. If you would like to check out the program first, FreshBooks currently offers a free 30-day trial with no credit card required.

Meanwhile, there’s no charge to use Wave’s bookkeeping software, and it supports unlimited users. There are additional fees for credit card and payroll processing, which is typical of any bookkeeping program. The fees you may encounter with Wave include:

• Accounting and Invoicing: Free
• Credit card processing: 2.9% plus 30 cents per transaction for most cards, 3.4% plus 30 cents per transaction for American Express
• Bank payments: $1 per transaction
• Payroll:
  • $35 per month plus $6 per employee or independent contractor for users living in tax-service states: Arizona, California, Florida, Georgia, Illinois, Indiana, Minnesota, New York, North Carolina, Tennessee, Texas, Virginia, Washington, and Wisconsin
  • $20 per month plus $6 per employee or independent contractor for users living in the remaining 36 states

FreshBooks vs Wave: Features

We selected three categories in our case study to provide you with a more thorough comparison of FreshBooks and Wave in terms of features.

Banking & Cash Management

Based on our case study, FreshBooks and Wave have their own unique strengths and weaknesses in terms of bank account reconciliation. While both let you connect your bank accounts, Wave lets you manually upload your files of transactions, instead of linking your bank. With FreshBooks, you can’t upload files of transactions unless you connect your bank account. This can be a huge limitation since not all users are comfortable connecting their bank accounts to their accounting software.

Both can’t reconcile transactions with timing differences, including outstanding checks that aren’t yet cleared by your bank. They also lack options for combining multiple checks in a single deposit. If your business relies on checks for your day-to-day transactions, you should consider QuickBooks Online for powerful bank reconciliation.

Invoicing (A/R)

Collecting payments is necessary for any business. Both FreshBooks and Wave have good invoicing capabilities, but FreshBooks offers more optimization options. Not only does it have more templates to choose from, but it also offers advanced functions like customizing payment reminders and late fees by clients.

The two programs can set up recurring invoices, but Wave doesn’t allow you to add late fees to your invoice. Also, the project management feature in FreshBooks lets you bill for hours worked and add it to your invoice.

Project Accounting

If you’re a service-based business that works on projects or bills clients by the hour, then you’ll find FreshBooks useful—it allows you to set up hourly or flat-rate projects and assign them to your employees or customers. Once you’re done with a project, you can convert it into an invoice easily.

When setting up a project estimate in FreshBooks, you have the option to add sales taxes, inventories, and labor. You can also compare cost estimates to actual costs, which is useful for contractors. Unfortunately, Wave has no project accounting system, although it does allow you to create an estimate.

FreshBooks vs Wave: Ease of Use

FreshBooks requires minimal setup. You can input your business details easily, such as company name, address, and telephone number. Additionally, the main page includes shortcut functions like the +New button to help you execute certain tasks easily, such as creating a new invoice and adding a new customer or bill. The left menu bar contains all the core features of FreshBooks, including Banking, Sales, Cashflow, Expenses, Projects, and Payroll.

The problem with FreshBooks is that you can’t modify the chart of accounts or import a chart of accounts unless you sign in as an accountant. This can be annoying if you’re switching to FreshBooks from previous accounting software.

Being free software, Wave is one of the easiest-to-use accounting programs on the market. When setting up your account in Wave, you’ll start with the Wave Launchpad, where you can choose one of the displayed options and then set up the entire process.

Just like FreshBooks, the Wave dashboard is easy to navigate, with uncluttered menu items and visible buttons to help you find what you need easily. Even as a beginner, you’ll get the gist of automating workflows easily, such as setting up a new client, adding a new bill, creating a project estimate, and sending an invoice.

FreshBooks vs Wave: Integrations

FreshBooks integrates with hundreds of third-party software to automate different business processes that are beyond its capability. Some of its most popular integrations include Shopify, Square, Bench Bookkeeping, Zapier, Calendly, Mailchimp, HubSpot, Gusto, Stripe, and PayPal.

Wave has very few direct integrations, but it connects with thousands of apps through Zapier. Some of its popular integrations include PayPal, Square, Stripe, Etsy, HubSpot, Slack, Google Sheets, and Pipedrive.

FreshBooks vs Wave: Mobile App Functionality

FreshBooks’ app wins in this section. If you’re a service-based business or an independent contractor who’s always out in the field, having the ability to record hours worked and assign them to your customers is very convenient.

FreshBooks vs Wave: Assisted Bookkeeping

FreshBooks by itself has no bookkeeping service for users. Instead, it partners with an online bookkeeping service provider, Bench, to accommodate users requiring expert help with their bookkeeping needs. With Bench, you’ll receive a dedicated bookkeeper who’ll assist you in managing your books. They’ll help you connect your bank and credit card accounts, categorize your transactions, reconcile your statements, and prepare the reports you need for the tax season.

Check out the breakdown of Bench’s pricing below:

• Essential: $299 per month, with access to a dedicated bookkeeping team, plus monthly bookkeeping, year-end tax reports, and direct, unlimited support from Bench
• Premium: $499 per month, includes everything in Essential, plus one one-on-one tax coaching, unlimited tax advisory, and annual tax filing for businesses and individuals

Meanwhile, Wave users who need help with their books can seek help from Wave Advisors. These are Wave-certified accounting and tax professionals who provide one-on-one accounting, bookkeeping, and tax consulting services exclusively for Wave customers. You can choose from the following services provided by Wave Advisors:

• Accounting coaching:
  • $229 for one session (1-hour package)—on-on-one coaching through video call, plus access to video recording, live chat support, and unlimited email support
  • $329 for two sessions (2 hours)—includes two separate 1-hour sessions
• Bookkeeping service: Starts at $149 per month—you’ll receive professional assistance with major bookkeeping tasks like account setup, bank reconciliation, and financial reporting
• Tax service: Starts at $149 per month and includes year-round support for federal and state tax filing

FreshBooks vs QuickBooks: Customer Support

FreshBooks has excellent customer support, where users can seek help through email or talk with a representative via a chatbot. The best part here is that you have the option to talk to a real person over the phone. Some providers, such as QuickBooks Online, do the same, but you can’t initiate the call. With FreshBooks, you can dial the phone, so you can directly talk to an agent without having to submit a ticket first. It also has a vast online help section equipped with detailed instructions on how to use FreshBooks’ features.

On the other hand, you can’t trust Wave to help you with serious or immediate technical problems. There’s literally no one to talk to over the phone, and the only thing you can hold on to is chat support, which is available for new users for 60 days after purchase. In addition to a chatbot, you can use the Wave Help Center, which includes some helpful resources that provide answers to your questions.

FreshBooks vs QuickBooks: User Reviews

Those who left FreshBooks reviews said that they like that the tool is one-stop accounting software that’s easy to set up and use. Users also praised its project tracking features and how easy it is to invoice clients if you use the project feature. The software’s biggest drawback is its inability to manage inventory, and other users wished that it had a live chat feature.

It earned the following average scores on popular review sites:

• G2: 4.5 out of 5 based on about 650 reviews
• GetApp: 4.5 out of 5 based on around 4,000 reviews
• TrustRadius: 8.2 out of 10 based on about 190 reviews

Meanwhile, Wave users said that they appreciate that the platform is free and very easy to use, giving a small business many of the features it needs to get up and running. Some also praised its mobile app that allows you to invoice customers while you’re working remotely. The solution’s biggest drawback is its lack of phone support.

Wave earned the following average scores on popular review sites:

• G2: 4.4 out of 5 based on about 275 reviews
• Software Advice: 4.43 out of 5 based on around 1,350 reviews
• TrustRadius: 7.1 out of 10 based on about 160 reviews

Frequently Asked Questions (FAQs)

Is Wave Invoicing really free?

Yes, Wave’s invoicing features are available free of charge.

Can you upload and reconcile bank statements manually in FreshBooks?

No, it isn’t possible to reconcile bank statements manually in FreshBooks because it doesn’t allow you to upload files of transactions unless you connect your bank account.

Does Wave offer live phone support?

No, Wave doesn’t offer live phone support; only live chat and email support.

How We Evaluated FreshBooks vs Wave

We evaluated FreshBooks and Wave based on ease of use, pricing, and how well it performed against the ideal features we’re seeking, including project accounting, inventory management, and mobile accounting. Our evaluation was based on a rubric scoring methodology in six categories, each with a designated appropriate percentage.

Our criteria for choosing the best small business accounting software are as follows:

Bottom Line

FreshBooks and Wave have a lot of similar features despite their different pricing structures. FreshBooks has a definite edge as it provides more options to invoice and bill customers, track employee time, track actual vs estimated project costs, and unbeatable customer support. However, if you only need basic accounting features, such as income and expense tracking and invoicing, regardless of how many users you need, the price of Wave is unbeatable.