Quickbooks vs Wave: Which Software is Best for You?

We encourage you to research and compare multiple accounting software products before choosing one. If you're in need of advanced accountancy features, choose QuickBooks over Wave. I started The Digital Merchant to test the tools, services, and products I use in my digital business. Now, I’m here with other online business owners buying, testing, and evaluating the best digital tools, services, and software we can find – for every stage of the business. When it’s tax time, this reporting feature has been huge for my business. With a few clicks, I send my accountant what he needs without sorting through receipts or crunching numbers.

QuickBooks offers in-depth bookkeeping options for nearly every possible need or outcome–which gives it a bit of a steep learning curve. Before switching your small business accounting software from Wave to QuickBooks, or vice versa, it is always a good idea to compare their tools and their prices. Wave has some free tools, whereas QuickBooks does not, though it has superior features if you don’t mind paying.

What is the difference between Wave and QuickBooks?

On the flip side, Wave connects to H&R Block, so the same logic applies if you already use H&R Block. But if you're a medium to large business or even a small business that's growing quickly, QuickBooks will have the features you need to scale. Yeah, you'll pay quite a bit more, but it'll likely be worth it to help you scale efficiently. If you're a (really) small business or a freelancer needing bookkeeping, Wave will likely have everything you need for free. And as long as you don't have any plans of rapidly expanding, you can't beat that. QuickBooks may be occasionally confusing, but it does have a live chat support feature to help you out of a pickle.

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2. Another convenient feature is the choice to have online payments automatically applied to an outstanding invoice, or handle the process manually, in order to ensure proper application of the payment.
3. There aren’t heftier plans or upgrade options that could accommodate larger companies.
4. However, if you plan on growing your business exponentially year over year, QuickBooks Online is a far better choice than Wave.

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. 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.

Invoicing & Payments

I simply create an invoice, customize a note to my customer, and hit send. Since my QuickBooks account is linked to my ACH bank, my clients pay, and the money is deposited directly into my account. The only caveat to this feature is you have to watch how QuickBooks categorizes each expense. It is usually correct, but sometimes the accounting software guesses and files it away incorrectly.

Unlike most accounting apps, QuickBooks’ mobile accounting app does everything its cloud-based software can do, including accounting, invoicing, expense tracking, and receipt capturing. The app scores 4.7 out of 5 from 126.9K iOS users and 4.0 out of 5 from over 41K Android users.1,2 Users tend to particularly note the app’s incredible ease of use and fully featured functionality. Paying your workers is easier thanks to the QuickBooks online accounting features of time tracking and 24-hour free direct deposit. There is also an app that offers to pay your employees from anywhere.

It’s not a big deal, but something to keep in mind, especially during tax season. QuickBooks online offers great ease of use and ability to track, and record your bills with a dashboard that offers great ease of use. Like online banking, this service is available anywhere, and you can pay multiple vendors and bills at the same time. Wave and QuickBooks aren’t the only small business accounting software choices competing for your business.

Add new QuickBooks Online invoices to Google Sheets spreadsheet rows

If this criteria is something that is crucial when making a decision for your business, QuickBooks is a better choice. Another useful feature is a real-time sync between QuickBooks mobile and QuickBooks online, enabling data consistency across all devices. However, when compared, it's clear that both platforms have their strong sides. Let's dive in deep and look in depth at both products to decide which platform takes the cake when it comes to features and functionalities. This website is using a security service to protect itself from online attacks.

However, they offer different levels of scalability, in-depth accounting features and customer support, which we’ll explore in more detail below. For very small businesses that rely mostly on invoicing, QuickBooks Online’s additional features might be overkill. In that case, committing to Wave could be a great way to save money. While it’s not necessarily convenient to switch accounting software products down the road, it’s also not impossible. Compared to QuickBooks which can cost as much as $200 per month for its Advanced Plan, Wave is completely free to use, making it perfect for smaller businesses looking to keep expenses low.

Is accounting software secure?

Wave deposits money into your connected bank account within two business days of payment. You’ll pay 2.9% plus $0.60 per transaction for Visa, Mastercard and Discover; 3.4% plus $0.60 per transaction for American Express; and 1% per transaction for ACH transfer from your client’s bank account. If you’re a freelancer or small-business owner whose primary consideration is affordability first and features second, Wave Accounting is a better pick for you than QuickBooks Online. But just as with their browser-based interfaces, QuickBooks’ features outnumber Wave’s on mobile as well. Only QuickBooks Online lets freelancers track mileage, convert estimates to invoices and scan and upload receipts. Regardless of the plan you choose, you can add optional bookkeeping advisory services starting at $149 per month.

Integrations

Wave charges a fee of 2.9% + $0.60 for credit card transactions (3.4% + $0.60 for AMEX transactions) and 1% for each bank transaction + a $1 minimum fee for every invoice payment it processes. The more advanced time tracking app, QuickBooks Time, is only available if you pay for QuickBooks Payroll, which comes at an additional cost. Employees can shortage & scarcity in economics: definition causes & examples clock in and out for real-time tracking or retroactively add their time. There are also fields for billable hours to add specific customers and services. Wave’s accounting features are completely free, but if you want to use Wave Payments (or another payment system) to get paid online, you’ll have to pay 2.9% plus $0.30 for each transaction.

Wave allows you to stay on top of your company’s cash flow, so you can manage what’s coming in and what’s going out at all times(see Wave Accounting alternatives). It took me a second to find where you input discounts, but it was pretty straightforward once I located it. There are also multiple ways to preview https://accountingcoaching.online/ your invoice with an email, PDF, and payor view. While Wave's reports are adequate, you have much more data at your fingertips with QuickBooks Online's reporting capabilities. Currently, Wave only offers 12 reports; though they are useful reports, with limited capability to customize the report.

While it lacks the bells and whistles offered by QuickBooks, its feature set is nothing to be snubbed at, and the tool is completely free to use, making it perfect for users who are looking to keep costs low. Both QuickBooks and Wave excel in different areas, so scroll down to find out how the two solutions compare when it comes to accountancy features, advanced capabilities, affordability, and support. You can also use our comparison guide to see how the providers fare against their competition, or check out our table below.

Wave offers more apps for potential integration, but app integration in QuickBooks Online requires one less step than app integration using Wave. It’s nice to be able to connect the app from within the software application, which you can do in QuickBooks Online. Wave offers integration with PayPal, Etsy, Stripe, and Shopify, along with numerous CRM and email marketing apps. There are also more than 1,000 apps you can integrate with Wave through Zapier, which works to connect web apps automatically.