Wave vs QuickBooks: Key Differences & What’s Best

Wave and QuickBooks Online differ in terms of cost, number of users, features, and other aspects. Wave has a free accounting and invoicing solution for single users and a $16 per month paid plan for unlimited users. QuickBooks Online is more expensive than Wave but has more advanced features, such as project accounting and inventory management, and can accommodate up to 25 users. Given these differences, we recommend:

Wave: Best for small businesses and freelancers seeking a free or low-cost solution for basic income and expense tracking
QuickBooks Online: Best for businesses that have inventory, track employee time, or require other advanced features

We are committed to the Fit Small Business mission of providing you the best small business accounting insights and recommendations. That said, we developed an internal case study to carefully assess all the articles we review, compare, and recommend.

To provide you with accurate and unbiased insights, we actively engage with QuickBooks Online and Wave ourselves and delve deep into their features. We then assess the two accounting software across a predetermined set of criteria and provide recommendations based on the findings in our case study.

Wave vs QuickBooks Online: Quick Comparison

	Wave	QuickBooks Online
Monthly Pricing	Starter: Free Pro: $16	Simple Start: $35 per month Essentials: $65 per month Plus: $99 per month Advanced: $235 per month
Number of Users Included	1 or unlimited	1 to 25
Strengths	Has a free plan for accounting and invoicing Supports unlimited users for only $16 per month Is easier to set up and use than QuickBooks Online Can send unlimited invoices even in the free plan Provides payroll at a low cost Can print basic financial reports Has more affordable assisted bookkeeping support package than QuickBooks	Is industry-leading accounting software Offers customizable invoices Lets you track and pay bills electronically Lets you track employee time and automatically add to customer invoices Has strong inventory features Offers efficient bank reconciliation Comes with a functional mobile app Can calculate sales tax automatically based on customer’s location Can track income and expenses by class and location Can invite your accountant to view your books
Weaknesses	Has limited advanced accounting features even in the paid plan Has a very limited mobile app Lacks time tracking features Lacks inventory management features Has no live customer support in the free plan unless you purchase an add-on	Is a bit expensive compared to competitors Has a slightly steeper learning curve than Wave Has a limited number of users in each plan
Ease of Use	Easy	Moderate
Mobile App	Poor	Excellent
Customer Support Options Available	Self-help resources for Starter users (can access email and live chat support with the purchase of an add-on); live chat and email support included for Pro users	Live chat, chatbot, phone support (call back only), and access to a vast network of QuickBooks Online ProAdvisors
User Review Ratings	4.4 out of 5 on Capterra^[1]	4.7 out of 5 on App Store^[2]
Fit Small Business Score	2.5 out of 5	4.4 out of 5
Learn More	Read our Wave review	Read our QuickBooks Online review

When To Use

Businesses that want a free accounting solution: Wave’s free plan, Starter, offers the basic accounting features present in premium accounting software like QuickBooks Online. It’s easy to use and there’s no limitation to the number of transactions, making it our best free accounting software
Basic invoicing for freelancers: Freelance professionals can use Wave to send invoices to their clients, accept payments, and organize their income and expenses for tax filing.
Basic income and expense tracking for service-based businesses: Small service-based businesses that don’t need to track time or inventory can use Wave for basic income and expense tracking.

To learn why Wave is our leading free accounting software, read our review of Wave.

Visit Wave

Inventory accounting: One of QuickBooks Online’s biggest strengths is inventory accounting, which is ideal for businesses that rely on selling products. QuickBooks Online lets you track stock and automatically calculates the cost of goods sold (COGS).
Project accounting: It has job costing features that let you set up a project and track income and expenses associated with it.
Collecting sales tax in multiple jurisdictions: QuickBooks Online calculates the proper sales tax automatically to collect based on each customer’s address.
Cash management: It allows you to print checks directly from the program and reconcile your checking account with checks outstanding. Wave doesn’t allow printing checks or reconciling an account that has any outstanding checks or deposits.

Read our review of QuickBooks Online to see why it’s our overall best small business accounting software.

Visit QuickBooks Online

Low-cost inventory accounting: Just like QuickBooks Online, Xero includes automatic tracking of inventories but at a lower price. To use inventory accounting with QuickBooks Online, you need to get a Plus plan at $90 per month, whereas with Xero, you only need its Growing plan at $32 per month. Read our review of Xero to learn more.
Manufacturing firms: Wave lacks features for tracking inventory. QuickBooks Online does, but it can’t track inventory assemblies, which is crucial for manufacturing companies. If you need to track raw materials and finished goods, then we recommend QuickBooks Desktop Premier. Explore its enhanced inventory features in our QuickBooks Premier review.
Businesses without the time to learn and use accounting software: If you don’t have time or resources to learn or train your team to use a do-it-yourself (DIY) accounting software, then you should consider outsourcing your bookkeeping tasks to Bench, our best online bookkeeping service. Head to our review of Bench for more information.

Fit Small Business Case Study

Using our internal case study, we evaluated and compared Wave and QuickBooks across a set of key criteria that are crucial to accounting software. You can see the detailed results for each application by reading our QuickBooks Online review and Wave review. Here’s a summary of our evaluation:

Touch the graph above to interact Click on the graphs above to interact

Wave Free or $16 monthly; $16 as tested
QuickBooks Online From $30 per month; $90 as tested

Wave Accounting vs QuickBooks: Pricing (Wave Wins)

	Wave	QuickBooks Online
Monthly Pricing	$0 (Starter) $16 (Pro)	$35 (Simple Start) $65 (Essentials) $99 (Plus) $235 (Advanced)
Number of Users	1 (Starter) Unlimited (Pro)	1 (Simple Start) 3 (Essentials) 5 (Plus) 25 (Advanced)
Number of Billable Clients	Unlimited	Unlimited
Payroll	$40 per month plus $6 per user (tax service states) $20 per month plus $6 per user (other states)	$50 plus $6 per user (Payroll Core add-on)
Bank Payments	$1 per transaction	1% (maximum $10)
Credit Card Processing (per Transaction)	2.9% plus 60 cents for most cards 3.4% plus 60 cents for American Express 60 cent per transaction fee is waived for Pro subscribers	2.4% plus 25 cents (swiped) 2.9% plus 25 cents (invoiced) 3.4% plus 25 cents (keyed)
Bookkeeping Service	From $149 per month	From $200 per month

Wave is often preferred by many very small businesses due to its pricing advantage as it has a free plan and very affordable plan with unlimited users. This affordability is particularly advantageous for startups, freelancers, and businesses with tight budgets, especially if they only have simple accounting needs, like invoicing and income and expense tracking.

Meanwhile, QuickBooks Online’s cheapest plan at $30 per month is preferable if you need to track mileage and file 1099s directly from the software. QuickBooks Online’s most popular plan, Plus, contains many valuable features, including project management, inventory accounting, and advanced reporting.

Tip: Read our comparison of QuickBooks Online plans to help you decide which fits your business needs.

Wave vs QuickBooks: Features

Banking & Cash Management (QuickBooks Online Wins)

Both Offer	Only QuickBooks Online Offers
Connect to bank account Create and send unlimited invoices Upload files of transactions Reconcile bank accounts when the bank statement transactions match the check register exactly	Reconcile bank accounts when timing differences exist between the bank statement and check register Print checks View outstanding transactions Generate reconciliation reports

You can connect your bank accounts to both software but Wave users must upgrade to the paid plan to do so. Also, while Wave lets you reconcile bank accounts, you can’t reconcile an account if checks have been written that haven’t yet cleared the bank. This makes Wave’s reconciliation feature essentially useless if you write many checks. Meanwhile, QuickBooks can reconcile items, including checks that aren’t yet processed by the bank.

While both programs import transactions, only QuickBooks Online allows you to manually match the imported transaction to an existing transaction in your books. Wave attempts to match the transactions automatically—but often fails. Since there is no way to match the transactions manually, you must delete the imported transaction. QuickBooks Online is the better choice for users who like to enter transactions as they occur, whereas Wave works well if you only record transactions as they are imported from your bank.

Invoicing (QuickBooks Online Wins)

Both Offer	Only QuickBooks Online Offers
Create and issue invoices Customize invoices Email and print invoices Send invoices from the mobile app View outstanding invoices Create recurring invoices	Issue a customer credit memo Calculate sales tax rates based on customer address Record partial payments of invoices Automatically add tracked labor and expenses to invoices

Very small businesses and self-employed professionals needing basic invoicing may do well with Wave. It lets you create, send, email, and print invoices. However, its invoices are not as customizable as those in QuickBooks Online. With the paid plan, you can select the theme color but you can’t adjust the color of the fields.

For larger businesses wanting a more robust invoicing solution, QuickBooks Online is the better choice. It provides more customization options and the ability to automatically add billable labor and expenses to invoices. Another great feature is the ability to calculate the correct tax rate on each sale automatically based on where you sell and ship your item, which is useful if you sell products and services in different jurisdictions.

Accounts Payable (QuickBooks Online Wins)

Both Offer	Only QuickBooks Online Offers
Capture expense receipts Record an expense without paying View unpaid bills Partially pay an invoice	Track payments to independent contractors for 1099 Create recurring expenses Record purchase orders Enter vendor credits

Both programs offer an easy way to record a bill and track outstanding bills, but QuickBooks Online has some features that Wave doesn’t. It lets you create POs and convert them into bills and enter a vendor credit and apply it when you pay the bill. If you want a more solid solution to manage your unpaid bills, then choose QuickBooks Online.

Inventory Management (QuickBooks Online Wins)

Both Offer	Only QuickBooks Online Offers
Save product descriptions to easily add to invoices	Track quantity purchased or sold Track total units and costs Calculate cost of goods sold (COGS) automatically Decrease inventory for units returned to vendor Record inventory returned from customers

Wave has a limited inventory management feature; you can’t use it to keep track of your stock. If you’re a product-based business, QuickBooks Online is well-suited for you. It has a robust inventory management system that lets you track available items and quantities, adjust inventory quantities automatically, and set up alerts so your team knows when it’s best to replenish your stocks. Most importantly, it’ll calculate your COGS automatically, something you’ll need to do manually with Wave.

Project Accounting (QuickBooks Online Wins)

Both Offer	Only QuickBooks Online Offers
Create an estimate Add inventory to an estimate Add sales taxes to estimates Add labor to an estimate	Assign estimate to a project Assign actual labor to a project Track profit by project Compare estimated vs actual project costs

Very small project-based businesses may find Wave’s estimate management feature helpful, but if you need robust project management features, QuickBooks Online is the better choice. It allows you to set up and manage projects, assign them to your team members, record transactions associated with those projects and mark them as completed once done.

Wave vs QuickBooks Online: Ease of Use (Wave Wins)

	Wave	QuickBooks Online
Accessibility	Cloud	Cloud
Shortcut Buttons	✓	✓
Customizable Dashboard	✓	✓
Uses Simple Language	✓	✕
Customer Support	Limited	Extensive
Company Setup	Easy	Moderate
Overall Ease of Use	Easy	Moderate

Wave has the upper hand in terms of ease of setup, but mostly because it lacks the sophisticated features that must be set up with QuickBooks Online. Wave’s interface might be more desirable for new users because it uses simple language, such as invoices owed to you.

Wave vs QuickBooks Online: Integrations (QuickBooks Online Wins)

You can connect Wave to other apps that you use every day to automate your business processes and streamline your financial transactions. Wave integrates with third-party applications, including:

Payments and ecommerce: PayPal, Shopify, Square, Stripe, and Etsy
Appointment scheduling: Calendly and Acuity Scheduling
Customer relationship management (CRM): HubSpot, Pipedrive, and Harvest
Email marketing: MailChimp, Automational, and SendPulse
Business management and automation: Slack, ShipStation, FormStack Document, Approval Donkey, eEndorsements, and Google Sheets

Meanwhile, QuickBooks Online itself has extensive integration with internal software like QuickBooks Payroll, QuickBooks Time, QuickBooks Payments, and QuickBooks Commerce, making it the clear winner of this category. It also connects with hundreds of third-party tools, such as:

Time tracking: ClockShark and eBillity
Inventory tracking: eBay by OneSAAS, Shopify by OneSAAS, Amazon Fulfillment by Amazon (FBA), Seller Fulfilled Accounting by Entriwise, and Katana Inventory and Manufacturing
CRM: Method: CRM, Insightly CRM, WORKetc, and Capsule CRM
Analytics: Syft Analytics, Qvinci, Fathom, and LivePlan
Payroll: Gusto, ADP, and Paychex
Project management: BigTime, Service Trade, Jobber, Corecon, and Knowify for Contractors
Payments: Bill.com, Deluxe eChecks, Plooto, and Veem

We wrapped up the best apps that integrate with QuickBooks in our guide to the best QuickBooks Online integrations for small businesses.

Wave vs QuickBooks Online: Mobile App (QuickBooks Online Wins)

Both Offer	Only QuickBooks Online Offers
Available on both iOS and Android Send invoices Accept payments Capture receipts	Categorize expenses from bank feeds View reports Enter unpaid bills Assign time worked to a customer or project

There might be instances where you need to send an invoice while you’re on a trip. In this case, you can use both Wave and QuickBooks to create and send an invoice to your client using your smartphone. However, if you find yourself needing to track your expenses and view your financial reports on the go, then you should choose QuickBooks Online.

Wave vs QuickBooks Online: Assisted Bookkeeping (Tie)

We consider this a tie since QuickBooks and Wave advisors are both certified and are equally competent to help you with your bookkeeping duties. The main factor that may affect your choice would be the price, which favors Wave.

Wave ProAdvisors provide one-on-one accounting and tax coaching services for Wave customers. You’ll be assigned a dedicated advisor who’ll help you complete your bookkeeping requirements.

Wave ProAdvisor’s pricing:
- Bookkeeping support: $149 per month
- Accounting and payroll coaching: $379 (one-time fee)
- Tax service: From $229 (one-time fee)

QuickBooks, on the other hand, offers QuickBooks Live Bookkeeping. Users will work with a QuickBooks-certified bookkeeper to help them with duties, such as reconciling bank accounts, generating reports, and preparing for tax filing.

QuickBooks Live Bookkeeping’s pricing:
- Onboarding: $500 (first month of service; dedicated to onboarding and cleanup of your books)
- Low-volume bookkeeping: $200 per month for businesses with $10,000 in monthly expenses
- Medium-volume bookkeeping: $300 per month for businesses with $10,001 to $50,000 in monthly expenses
- High-volume bookkeeping: $400 per month for businesses with over $50,000 in monthly expenses

Read our detailed QuickBooks Live Bookkeeping review to learn more about this assisted bookkeeping service. Should you end up choosing QuickBooks and are interested in hiring a ProAdvisor, read our guide on how to find a QuickBooks ProAdvisor near you.

Wave vs QuickBooks: Customer Support (QuickBooks Online Wins)

	Wave	QuickBooks Online
Email Support	✓	✓
Self-help Resources	✓	✓
Phone Support	✕	QuickBooks Online will call you
Live Chat Support	✓	✓
Chatbot	✕	✓

QuickBooks Online’s customer support is more reachable, and the reps can provide answers to your questions quickly. Wave offers free self-help resources, and you can only access live chat and email support if you purchase an add-on in the free plan or upgrade to the paid version. Meanwhile, QuickBooks offers live chat, chatbot, and phone support, which means there are more options to contact support. However, you can’t call QuickBooks directly. You must request a callback, which isn’t bad since you don’t have to wait on hold.

QuickBooks Online vs Wave: User Reviews (QuickBooks Online Wins)

	Wave	QuickBooks Online
Users Like	Has a free plan Is easy to use Has simple invoicing with tracking features Offers a useful receipt capture feature	Offers plenty of customization options Has excellent inventory management features Is applicable to nearly all industries Has excellent bank reconciliation features
Users Dislike	Doesn’t offer phone support Lacks some other important accounting features Has reporting features that are not as extensive as those in QuickBooks	Can be expensive for small businesses Has an initial learning curve Requires a lot of steps for some tasks

Wave User Reviews

Many users who left positive reviews of Wave like that it has a free plan. One even pointed out that the reason they prefer QuickBooks Online vs Wave is because QuickBooks is expensive. Additionally, others appreciate that its invoicing feature is easy to use and that it has tracking tools that allow them to know if invoices have been viewed.

Meanwhile, those who aren’t that satisfied with Wave complained that customer service is limited and that the self-help documents are not always sufficient. Others mentioned that its reporting features are not as robust as those in QuickBooks Online.

As of this writing, here’s how Wave is rated by several review sites:

Capterra^[1]: 4.4 out of 5 based on over 1,400 reviews
TrustRadius^[3]: 6.8 out of 10 based on about 170 reviews

QuickBooks Online User Reviews

What users like about QuickBooks Online is that it offers plenty of customization options in many aspects, including transaction tracking and reporting. Some like how it efficiently tracks inventory count, while others are impressed with its integration capabilities.

On the flip side, some users are unhappy with QuickBooks because it may take time to learn and navigate the software effectively, especially for those with limited accounting experience. One user dislikes that it’s expensive for small businesses, while another noted that some of the workflows, including banking, involve several steps to complete.

QuickBooks Online earned the following rates on popular review sites:

App Store^[2]: 4.7 out of 5 based on nearly 176,000 reviews
Software Advice^[4]: 4.3 out of 5 based on more than 6,300 reviews

Frequently Asked Questions (FAQs)

Wave offers a free plan for basic accounting and invoicing, while QuickBooks offers paid versions with more enhanced accounting features like inventory, time, and project tracking.

Whether Wave or QuickBooks is better greatly depends on your budget and your desired features. If you are on a tight budget and only have simple accounting needs, Wave might be sufficient. QuickBooks may be preferable if you’re willing to pay for advanced features, such as inventory management, class and location tracking, and project accounting.

Wave is often preferred for very small businesses or freelancers, while QuickBooks is suitable for a wider range of business sizes with more complex accounting needs.

Many users find Wave to be more user-friendly and easier to use than QuickBooks Online due to its simplicity and lack of advanced features.

Bottom Line

When it comes to price, Wave is the clear winner. However, that’s not always the only consideration for businesses. While very small operations only need basic invoicing and accounting to survive, larger ones may require more advanced features, such as inventory management, paying bills by check, and income or expense tracking by location—and this is where QuickBooks Online takes the lead. Overall, your choice depends on your needs, business size, and budget for such a program.

User review references:

^[1]Capterra | Wave
^[2]App Store | QuickBooks Online
^[3]TrustRadius | Wave
^[4] Software Advice | QuickBooks Online

Which Accounting Software is Better for You?

Question 1

Are you willing to pay for advanced accounting features, like project accounting, inventory management, time tracking, online bill pay, or check printing?

Question 2

Are you looking for a solution that can accommodate your growing business?

Question 3

Do you need phone support and extensive customer assistance?

Question 4

What is your forecasted highest annual gross receipt for the next three years?

About the Author

Mark Calatrava

Why You Can Trust Fit Small Business