QuickBooks vs. Wave: Which Software is Best for Small Businesses?

When it comes to choosing accounting software for your business, Wave Accounting and QuickBooks Online are two of the most popular options available. But how do you know which one is the best choice for you? In this blog post, we’ll compare these two tools, highlighting their strengths and weaknesses. We’ll explore their pricing, features, integrations, and other important factors to help you make the right decision for your business.

Why Choose Accounting Software?

As a business owner, managing your finances is crucial to your success. Whether you are a freelancer, a small business owner, or running a larger company, keeping track of your money, expenses, and taxes can be overwhelming. Accounting software can make this job much easier, helping you manage your books, generate reports, and stay organized.

Among the most well-known options for small businesses are Wave Accounting and QuickBooks Online. Both offer features that can help simplify your finances, but they are designed for different types of users and business needs. Let’s dive into a detailed comparison of Wave vs QuickBooks to find out which one is better for you.

1. Pricing: Which One Is More Affordable?

When choosing accounting software, the cost is an important factor. No business owner wants to spend more than necessary on software, so it’s essential to understand the pricing of each platform.

Wave Accounting Pricing:

Wave stands out because it’s completely free for basic accounting features. This is great for small businesses, freelancers, or anyone with simple accounting needs. With Wave, you can create invoices, track expenses, and manage your accounts without paying a single penny. There’s also a paid option called Wave Pro, which costs $16/month and adds more features like receipt scanning and automated bank transaction imports.

QuickBooks Online Pricing:

QuickBooks Online offers several plans based on the size and needs of your business. The prices are as follows:

• Simple Start: $30/month – This plan includes essential features such as invoicing and expense tracking.
• Essentials: $60/month – This adds features like bill management and time tracking.
• Plus: $90/month – This plan includes inventory tracking, project management, and more advanced reports.

As you can see, QuickBooks Online is more expensive than Wave, especially if you need more advanced features. However, the price also reflects the breadth of functionality that QuickBooks offers. If you're just starting out and don’t need many features, Wave’s free plan might be a better fit.

2. Features & Functionality: Which One Has More Tools?

Now that we’ve covered pricing, let’s look at the features and functionality offered by each software. Depending on your business needs, you may require specific tools to manage your finances effectively.

Wave Accounting Features:

Wave is great for small businesses and freelancers who don’t need advanced accounting tools. Its core features include:

• Invoicing: You can create and send invoices, and even set up recurring invoices.
• Expense Tracking: Wave allows you to track your business expenses and categorize them to make tax time easier.
• Basic Reporting: You can generate simple reports such as income statements and profit and loss reports.
• Bank Account Integration: Wave lets you connect your bank account and automatically imports transactions, saving you time on data entry.

However, Wave lacks some features that larger businesses might need, such as:

• Inventory Management: If you sell products and need to keep track of your inventory, Wave won’t be enough. This feature is only available in paid versions of accounting software like QuickBooks.
• Advanced Reporting: If you need complex reports like balance sheets, Wave may not be sufficient.
• Project Management: For businesses managing multiple projects, Wave lacks project management tools.

QuickBooks Online Features:

QuickBooks Online is designed to meet the needs of growing businesses and offers a much wider range of features than Wave. These include:

• Invoicing and Payments: QuickBooks allows you to create custom invoices and accept payments online. It also has options for recurring billing.
• Expense Tracking: You can track expenses, attach receipts, and automatically categorize transactions.
• Inventory Management: If your business sells products, QuickBooks can track your inventory levels, which Wave cannot do.
• Advanced Reporting: QuickBooks provides a wide range of detailed reports that give you insights into your business's financial health, such as balance sheets, profit and loss statements, and cash flow reports.
• Payroll Services: QuickBooks has an integrated payroll solution to pay employees and file taxes.
• Project Tracking: If you work on client projects, QuickBooks allows you to track time and expenses related to specific projects.

If you need robust accounting tools, inventory management, or advanced reporting, QuickBooks is the better choice. However, if you’re running a small business or a freelancer, Wave may be sufficient for your needs.

Read Blog- Why You Need QuickBooks For Small Business?

3. Ease of Use: Which One Is More User-Friendly?

For small business owners, ease of use is a top priority. You don’t want to waste time learning a complicated system, especially if you don’t have an accounting background.

Wave Accounting Ease of Use:

Wave is known for its simple and intuitive interface. Setting up your account is straightforward, and the software walks you through the process. The dashboard is clean, and you can easily access your invoices, expenses, and financial reports. Wave is designed for people who don’t want to spend a lot of time learning complex software.

QuickBooks Online Ease of Use:

QuickBooks Online, while powerful, can be a bit more complicated to navigate, especially for beginners. With so many features, it can take some time to get used to the layout and find all the tools you need. QuickBooks provides helpful tutorials and customer support to guide you, but it may still feel overwhelming compared to Wave’s simpler interface.

If you’re new to accounting software, Wave’s ease of use makes it the better option. However, if you need advanced features and are willing to invest the time to learn, QuickBooks may be worth the effort.

4. Integrations: Can You Connect to Other Tools?

As your business grows, you’ll likely need to connect your accounting software to other tools you use, such as payment gateways, e-commerce platforms, and customer relationship management (CRM) systems.

Wave Accounting Integrations:

Wave offers a limited number of integrations, especially compared to QuickBooks. It can integrate with a few payment platforms, like PayPal and Stripe, but the options are more limited. To connect Wave with other software, you’ll likely need to use third-party integration tools like Zapier.

QuickBooks Online Integrations:

QuickBooks Online excels in this area, offering over 750 integrations with other business tools. Whether you need to connect to payment systems, CRMs, or e-commerce platforms, QuickBooks makes it easy to sync your accounting data with other software. This flexibility makes QuickBooks a better choice for businesses that use multiple tools to manage different aspects of their operations.

5. Customer Support: Who Can Help You When You Need It?

Good customer support is crucial when you're dealing with accounting software, as any issues could impact your business finances.

Wave Accounting Support:

Wave offers customer support via email and chat. However, phone support is only available for Pro users, and the live chat hours are limited to business hours. For many users, this may not be enough, especially if you need help outside of regular hours.

QuickBooks Online Support:

QuickBooks Online provides 24/7 customer support, including phone and live chat. Whether you’re working late or need assistance during weekends, QuickBooks has you covered. They also have an extensive help center with tutorials and resources to guide you.

When it comes to support, QuickBooks Online provides more reliable and accessible options compared to Wave.

6. Which One Is Better for Your Business?

The right choice between Wave and QuickBooks depends on your business's size, needs, and budget.

• Choose Wave if:
• You have a small business or are a freelancer with basic accounting needs.
• You are looking for an affordable or free accounting solution.
• You don’t need advanced features like inventory management or detailed reports.
• Choose QuickBooks Online if:
• You are running a growing business and need more advanced features like project tracking, inventory management, and detailed reporting.
• You require extensive integrations with other tools.
• You want access to 24/7 customer support.

Read This-  Key Features of Sage Accounting Software

Make the Right Choice for Your Business

In the end, both Wave and QuickBooks Online offer valuable features, but they serve different types of businesses. If you’re just starting out or have simple accounting needs, Wave is a great choice because it’s free and easy to use. However, if your business is growing and you need more robust features, QuickBooks Online is worth the investment for its advanced tools and support.

Global FPO helps businesses of all sizes with their accounting needs. Whether you need help choosing the right accounting software or managing your finances, our team is here to support you. Reach out to us today to learn more about how we can assist your business in achieving financial success.

FAQs

1. Is Wave Accounting really free?

Yes, Wave offers a free plan that includes invoicing, expense tracking, and basic reporting. However, for advanced features like receipt scanning and automated bank transaction imports, you will need to upgrade to Wave Pro.

2. Which software is better for small businesses: Wave or QuickBooks?

If you have a small business or are a freelancer with basic accounting needs, Wave may be the better option due to its free plan and user-friendly features.

3. Can I integrate Wave with other software?

Wave offers limited integrations with a few platforms like PayPal and Stripe. To connect with other software, you may need to use third-party tools like Zapier.

4. Does QuickBooks have good customer support?

Yes, QuickBooks Online provides 24/7 customer support through live chat and phone. They also offer an extensive help center with resources and tutorials.

5. How much does QuickBooks cost?

QuickBooks Online has three pricing tiers: Simple Start ($30/month), Essentials ($60/month), and Plus ($90/month).