FreshBooks vs Wave: Costs, features and differences

FreshBooks vs Wave: What you need to know

What is FreshBooks

FreshBooks goes beyond accounting and invoicing with tools for managing billable work and projects. For founders managing both client work and business finances, FreshBooks brings these workflows together in one place.

With FreshBooks for small businesses, you can manage invoices and payments while also keeping track of the time and work that goes into each project. When comparing FreshBooks vs Wave, this broader focus on managing billable work and client projects is one of the main differences to consider.

What is Wave

Wave gives small businesses a way to handle their accounting and invoicing without paying for features they may never use. Wave accounting software for small businesses is designed to be cost-effective, offering a free version with unlimited invoicing and clients as your business grows.

When comparing FreshBooks vs Wave, if keeping costs low is your priority, Wave makes more sense. As a founder with a growing business, Wave’s unlimited clients and invoicing may be exactly what you’re looking for.

FreshBooks vs Wave: Key differences

Pricing and plans

Pricing is probably one of the biggest factors founders consider before deciding between FreshBooks vs Wave. Each accounting software has its own pricing structure, with FreshBooks pricing offering four plans starting at USD $23 per month, while Wave accounting software pricing includes a free plan with unlimited invoicing and clients.

FreshBooks pricing

• Lite - USD $23/month: Up to 5 billable clients, unlimited invoices and estimates, expense tracking and unlimited time tracking
• Plus - USD $43/month: Up to 50 billable clients, plus recurring billing, receipt scanning, accounting reports and accountant access
• Premium - USD $70/month: Unlimited clients, plus project profitability and other advanced accounting features
• Select - Custom pricing: Unlimited clients with additional support and features for businesses with more specific requirements

Wave accounting software pricing

• Starter - USD $0/month: Unlimited invoicing, estimates, clients and bookkeeping records, with core accounting features
• Pro - USD $19/month: Adds automatic bank transaction imports, categorization and merging, unlimited receipt capture, additional accounting features and unlimited user access

Worked Example

Say your business has 50 clients and 2 employees, and you want your accounting software to handle invoicing, bookkeeping and team access. Here's how the monthly software costs could look:

With FreshBooks:

• Plan: Plus - USD $43/month, supporting up to 50 billable clients
• Additional users: USD $11/month, 1 additional team member
• Base monthly cost: USD $43 + USD $11 = USD $54/month before payment-processing fees

With Wave:

• Plan: Pro - USD $19/month
• Additional users: No additional software charge for adding users to the account
• Base monthly cost: USD $19/month before payment-processing fees

Note: This is an illustrative example based on the listed pricing and assumptions above. Actual costs may vary depending on your plan, business location, payment volume and specific requirements.

Accounting, invoicing and billing

Both FreshBooks and Wave cover the core invoicing and billing processes, but as a founder, you need to look at the minor differences that could make one more suited to your business than the other.

FreshBooks has an integrated time tracker that lets you record billable hours and automatically pull them into client invoices. Wave's advantage is its Starter plan already lets you create unlimited invoices and estimates without any monthly fee.

When it comes to collecting online payments, both platforms support credit cards and ACH. FreshBooks goes a step further with FreshBooks Payments, which gives you options like Buy Now, Pay Later, instant payouts and checkout links.

Expense management

Both platforms let you record and categorize business expenses, but FreshBooks ties expenses more directly to client and project workflows. Both FreshBooks vs Wave cover these requirements, helping you keep track of business spending and organize it within your accounting records.

The difference is clearer when you look at how expenses fit into the wider workflow. FreshBooks can connect expenses to specific clients and projects, so you can automatically bill clients for expenses.

The extra features may make FreshBooks pricing worth the higher cost, but as a founder, you need to decide whether you’ll actually benefit from them. If your main challenge is controlling employee and company spending rather than recording it afterward, accounting software may not address the whole workflow. Aspire¹ can complement your accounting platform with corporate cards2, spend controls and centralized visibility into company transactions.

Reporting and bookkeeping

As a founder, you need your accounting software to give you a clear picture of how your business is doing financially. FreshBooks vs Wave can both do that by providing financial reports and bookkeeping tools.

Wave accounting software for small business and FreshBooks both cover core financial reporting, including the information you need to monitor your business's financial position and performance. FreshBooks adds deeper reporting capabilities on its higher-tier plans, which can give businesses more insight into project performance and how their operations are tracking.

Both platforms let you give accountants or bookkeepers access to your account for collaboration. When comparing FreshBooks vs Wave, consider whether you need a more cost-effective option or additional reporting capabilities for deeper insight into your projects and operations.

What to consider when choosing FreshBooks vs Wave

Project and time tracking: When comparing FreshBooks vs Wave, consider whether your business would benefit from tracking billable hours and connecting them directly to your accounting workflow. FreshBooks brings time tracking and project management into the same workflow as your accounting, so you can track billable hours and manage project-based work alongside your finances.

Bank automation and receipt capture: FreshBooks vs Wave differ in how much of the bookkeeping process they automate after transactions enter the system. FreshBooks includes bank reconciliation on Plus and higher plans, while Wave Pro can automatically merge and categorize transactions. For receipts, FreshBooks offers scanning from Plus, while Wave Pro includes unlimited digital receipt capture.

Users, accountant access and payroll: As your team grows, compare the additional costs alongside your accounting software subscription. FreshBooks charges USD $11 per additional team member, while Wave Pro includes unlimited users. Both support accountant access, while payroll adds USD $40 per month plus USD $6 per employee on FreshBooks and Wave, depending on the payroll configuration.

Integrations: Your invoice management software should work smoothly with the other tools your business relies on. Check that your accounting software connects with the payment, payroll, productivity and commerce platforms you already use, especially if you want to avoid manually transferring information between systems.

When FreshBooks may be the better fit

For businesses that regularly track billing or manage projects, FreshBooks for small business offers the tools that keep these workflows connected to your accounting. Its time tracking, expense management, built-in payment solution, and detailed reporting can be especially useful.

When comparing FreshBooks vs Wave, the higher cost can make sense if you need these additional capabilities and they save you time managing your finances.

When Wave may be the better fit

Keeping accounting costs low can be a priority for founders with straightforward invoicing and bookkeeping needs. Wave accounting software for small business gives you a free Starter plan with unlimited invoices, estimates and clients, making it a practical choice if you don't need many advanced features.

FreshBooks vs Wave: Which is right for your business

The choice between FreshBooks vs Wave ultimately comes down to what your business prioritizes. If you believe the additional cost of FreshBooks for small businesses can deliver enough value through better time tracking, project management and billable-work features to support your growth, the higher subscription may be worth it.

If you're just starting out and keeping costs under control is more important, Wave accounting software for small businesses offers a free Starter plan with unlimited invoices, estimates, clients and bookkeeping records. That can give you the essentials without adding another monthly software expense.