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 a single user and a $16 per month paid plan for unlimited seats. 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, I 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
- Wave vs QuickBooks Online: Quick Comparison
- Use Cases & Pros & Cons
- Fit Small Business Case Study
- User Reviews: Wave Wins
- Pricing: Wave Wins
- Features: QuickBooks Online Wins
- Ease of Use: Wave Wins
- Integrations: QuickBooks Online Wins
- Mobile App: QuickBooks Online Wins
- Assisted Bookkeeping: Wave Wins
- Customer Support: QuickBooks Online Wins
- Frequently Asked Questions (FAQs)
- Bottom Line
Wave vs QuickBooks Online: Quick Comparison
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|---|---|---|
| Fit Small Business Rating | 2.72 | 4.61 |
| Monthly Pricing |
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| Number of Users Included | 1 or unlimited | 1 to 25 |
| Free Trial | 30 days | 30 days |
| Import Transactions via Bank Feeds | Pro plan | ✓ |
| Issue & Track Customized Invoices | ✓ | ✓ |
| Track Unpaid Bills | ✓ | ✓ |
| Inventory Accounting | ✕ | ✓ |
| Project Accounting | ✕ | ✓ |
| Unlimited Transactions | ✓ | ✓ |
| Accessibility | Cloud | Cloud |
| Mobile App | iOS and Android | iOS and Android |
| Scalability | Pro plan includes unlimited seats | Each tier includes a set number of users; up to 25 in Advanced |
| Ease of Use | Easy to use; doesn’t require any accounting experience | Easy to use; doesn’t require any accounting experience |
| Customer Support | Self-help resources for all plans; email and live chat support included with Pro or any paid add-on | Phone (call back |
| Average Rating on Third-party Sites | 4.38[1][2] | 4.28[3][4] |
| Visit Wave | Visit QuickBooks Online |
Use Cases & Pros & Cons
- Businesses wanting 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. While QuickBooks Online also offers these features, those offered by Wave are ideal for freelancers who don’t need the extra bells and whistles that come with a higher-priced plan.
- 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. This is in contrast to QuickBooks Online, which lets you track both time and inventory.
- Inventory accounting: Unlike Wave, which doesn’t offer inventory accounting, this is one of QuickBooks Online’s biggest strengths, 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 its income and expenses. This feature is unavailable with Wave.
- Collecting sales tax in multiple jurisdictions: QuickBooks Online calculates the proper sales tax automatically to collect based on each customer’s address. Wave doesn’t offer this capability.
- Cash management: You can print checks directly from the program and reconcile your checking account with outstanding checks. Wave doesn’t allow printing checks or reconciling an account with outstanding checks or deposits.
- 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 the Plus plan at $99 a month, whereas with Xero, you only need its Growing plan at $47 monthly. Read our review of Xero to learn more.
- Manufacturing firms: Wave lacks features for tracking inventory, and while QuickBooks Online has it, it can’t track inventory assemblies, which is crucial for manufacturing companies. If you need to track raw materials and finished goods, then I recommend Katana, one of our leading accounting software for manufacturing businesses.
- 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 DIY accounting software, then you should consider outsourcing your bookkeeping tasks to Bench, our top-recommended online bookkeeping service. Head to our review of Bench for more information.
If your small business fits one or more of those scenarios and needs additional recommendations, check out our guide to the best small business accounting software.
Fit Small Business Case Study
Using our internal case study, I 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 my evaluation:
QuickBooks Online vs Wave
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- QUICKBOOKS ONLINE PLUS $99 PER MONTH
- WAVE PRO $16 PER MONTH
User Reviews: Wave Wins
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|---|---|---|
| Average Rating on Third-party Sites | 4.38[1][2] | 4.28[3][4] |
| Users Like |
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| Users Dislike |
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Both Wave and QuickBooks Online received mostly positive reviews, but I’m more impressed with Wave because of its consistently high scores when it comes to ease of use and efficiency tools. While QuickBooks is much more robust software, Wave is more affordable and offers many useful tools, such as invoicing with tracking features. This is why Wave leads in this category.
Wave Reviews
Many users who left positive reviews of Wave like that it has a free plan. One even pointed out that they prefer it 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, reviewers who aren’t dissatisfied 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 on these review sites:
QuickBooks Online Reviews
What reviewers 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.
However, some are unhappy with QuickBooks because learning and navigating the software may take time, especially for those with limited accounting experience. One even 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 average scores on these popular review sites:
Pricing: Wave Wins
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| Plans & Monthly Pricing |
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| Number of Billable Clients | Unlimited | Unlimited |
| Number of Users Included |
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| Payroll |
Read our review of Wave Payroll. |
Read our QuickBooks Workforce review (formerly QuickBooks Payroll). |
| Bank Payments | $1 per transaction | 1% (maximum $10) |
| Credit Card Processing(per Transaction) |
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| Bookkeeping Service | From $149 a month | From $300 monthly |
| Free Trial | 30 days | 30 days |
Wave is often preferred by many very small businesses due to its pricing advantage, as it has a free plan and a 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 $35 per month is preferable if you need to track mileage and file 1099s directly from the software. The most popular tier, Plus, contains many valuable features, including project management, inventory accounting, and advanced reporting.
Features: QuickBooks Online Wins
Banking & Cash Management: QuickBooks Online Wins
| Both Offer | Only QuickBooks Online Offers |
|---|---|
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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 paper checks. Meanwhile, QuickBooks can reconcile bank accounts even when items in the check register haven’t yet cleared 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 |
|---|---|
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Wave is very competitive with QuickBooks in terms of invoicing features—and 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 tier, 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 add billable labor and expenses to invoices automatically. 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 |
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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, 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 |
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Wave has no inventory accounting; 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 |
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Very small project-based businesses may find Wave’s estimate management feature helpful, but if you need robust project management features, go with QuickBooks Online. 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 they are done.
Ease of Use: Wave Wins
| | |
|---|---|---|
| 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.
Integrations: QuickBooks Online Wins
While you can connect Wave to apps to automate your business processes and streamline your financial transactions, there aren’t integrations to electronically pay bills from within the software or to help you manage your sales tax. 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 Documents, Approval Donkey, eEndorsements, and Google Sheets
Meanwhile, QuickBooks Online itself has extensive integration with internal software like QuickBooks Workforce, QuickBooks Time, QuickBooks Payments, and QuickBooks Commerce, making it the clear leader 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, ServiceTrade, Jobber, Corecon, and Knowify for Contractors
- Payments: Bill.com, Deluxe eChecks, Plooto, and Veem
Mobile App: QuickBooks Online Wins
| Both Offer | Only QuickBooks Online Offers |
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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’ iOS and Android apps 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.
Assisted Bookkeeping: Wave Wins
Although QuickBooks and Wave advisors are both certified and are equally competent to help you with your bookkeeping duties, I selected Wave as the leader of this category. The main factor that may affect your choice would be the price—which favors Wave.
Additionally, Wave Advisors provide accounting and payroll coaching and tax services in addition to bookkeeping, while QuickBooks ProAdvisors do not. You’ll also be assigned a dedicated Wave Advisor who’ll help you complete your bookkeeping requirements.
- Wave Advisor’s pricing:
- Bookkeeping support: Starts at $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: $300 per month for businesses with $10,000 in monthly expenses
- Medium-volume bookkeeping: $500 per month for businesses with $10,001 to $50,000 in monthly expenses
- High-volume bookkeeping: $700 per month for businesses with over $50,000 in monthly expenses
Customer Support: QuickBooks Online Wins
| | |
|---|---|---|
| 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. Moreover, QuickBooks offers live chat, chatbot, and phone support, so there are more contact support options. 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.
Meanwhile, Wave offers free self-help resources. You can only access live chat and email support if you purchase an add-on in the free tier or upgrade to the paid plan.
How I Evaluated Wave Accounting vs QuickBooks Online
Frequently Asked Questions (FAQs)
What is the main difference between Wave and QuickBooks Online?
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.
Is Wave or QuickBooks Online better?
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.
Which one is more suitable for small businesses?
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.
Is Wave easier to use than QuickBooks Online?
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]G2 | Wave
[3]Capterra | QuickBooks Online
[4]G2 | QuickBooks Online
