Project management, time management, and CRM software applications have helped more businesses get work done and become more efficient than ever. Plus, operations have been made easier by accounting software as well. And with Wave, you can streamline your accounting and invoicing processes into one software.
Big names like QuickBooks and FreshBooks have become the must-use for accounting. So, is Wave something worth using for your business? Check out our Wave review here and find out if it’s an ideal fit for you.
What is Wave?
Wave is a financial software application that will help businesses with invoicing, accounting, and scanning receipts. It’s a basic, all-in-one solution that even non-accountants can use for their daily expense, income, and invoicing needs.
Who Is It Ideal For?
Wave is ideal for solopreneurs, startups, and small businesses. With Wave, you don’t have to worry about expenses because the software is free to use.
What Are Wave’s Features?
Even a free app like Wave is packed with amazing features that small businesses would love to use. Here are the app’s three primary features. Let’s unpack everything in this Wave Review.
An accounting software like Wave can make it easier for you to do your taxes. They have a dashboard that organizes your expenses, payments, incomes, and invoices. Plus, it uses double-entry accounting, which could make it convenient for your accountant to keep track of your debits and credits.
Invoicing software can become expensive. But with Wave, you can create invoices for free. Plus, you can even customize your invoices with your business logo and colors.
What are the other perks of using Wave’s invoicing software?
- Tracking and communication features
- Bookkeeping capabilities
- Billing and recurring invoices
- Portable invoicing and notification
Don’t lose your receipts and have a record of all your essential expenses. With Wave, you can take a picture of your receipt, and it’ll be available anywhere. Even if you don’t have access to the internet, you can still take a photo of your receipt, and the receipt will be synced once it’s online.
Plus, if you have receipts in your inbox, you can send them to Wave’s receipts email, and they will sync the receipt to your account.
Aside from their basic free features, they also offer Payroll for businesses at a fee. Let’s also take a look at this feature.
Wave’s Payroll system has known features such as managing benefits and tracking vacations. You can also get payroll reporting. Plus, Wave’s Payroll is known to be tax-compliant too.
Some states are eligible to use Wave to pay their taxes. The taxes they can pay are IRS-WH and IRS-FUTA. In addition, they may file Forms 940, 941, 944, and W-2/W-3.
Here’s the list of all states allowed to pay and file taxes on the app:
- New York
- North Carolina
Wave also provides payment and filing for state-related taxes from the above-mentioned states. You may learn more about it here.
Wave Pricing & Processing Fees
Good news for those who want to use this app. It’s free to use! There are no hidden fees, and you don’t have to subscribe monthly to use the app.
However, you should note that there are processing fees in the app that help keep the app running. There’s a processing fee of 2.9% + 30 cents for credit cards. As for American Express holders, the processing fee is 3.4% + 30 cents. Plus, there’s a 1% charge for bank payments when applicable.
Meanwhile, if US-based and Canadian businesses opt to use Wave for Payroll, here are the fees as follows:
This is for businesses who live in the 14 states (in the US) where Tax Filing and Payments are available:
- $35/mo base fee
- $6/active employee
- $6/paid contractor
Meanwhile, this is for the 36 other states and Canada:
- $20/mo base fee
- $6/active employee
- $6/paid contractor
Pros and Cons of Using Wave
- Ease of use
- Customizable templates
- Double-entry accounting available
- All-in-one invoicing and accounting for small business
- Data remains secure
- Provides reports
- Mobile app available for invoicing and receipt scanning
- Permission to add more people to your Wave account
- Reconciliation issues
- Problems with closing a period
- No time tracking available
- Payroll service limited to 14 states
What are Alternatives to Wave?
While Wave could be too good to be true, it could pose some limitations. As such, some software applications may offer better features than Wave that you may consider while searching for an accounting software. In this Wave review, let’s see how the free software holds up against its competitors.
One of Wave’s formidable competitors is QuickBooks. Both QuickBooks and Wave have similar features. However, QuickBooks offers a comprehensive accounting solution and advanced reporting tools. Plus, they also have a time-tracking solution and project creation for different team members.
Simple Start: $25/mo
FreshBooks is another Wave competitor that has helped streamline accounting and invoicing for businesses. While it’s on the same level as QuickBooks, FreshBooks is best for those launching their businesses and solopreneurs. Like QuickBooks, it also has time tracking and project creation.
They offer a custom pricing solution for businesses with complex accounting and invoicing needs.
Xero is another accounting software that any business can consider. It also has the same features as Wave, but it’s a great one for non-accountants. This software is best for inventory and sales tax. Aside from that, this one’s great for businesses outside the US as well.
Wave is a leading choice for most small businesses and solopreneurs to carry out their accounting and invoicing activities. The software is ideal for those on a budget since it’s free to use, save for processing fees. But businesses may opt for its paid alternatives considering those applications may offer a more comprehensive accounting structure. As this Wave review shows, the accounting software is giving its competitors a run for its money. As such, its users are thankful they don’t have to pay a single cent to use the software.