Wave: when the free plan is enough
Wave isn't what we run most of our clients' books on, but it's often the right starting point for a business that's just getting off the ground. Here's when we point people toward it, and when we tell them to skip straight to something else.
The free plan is a real accounting tool, not a stripped-down demo
Wave's Starter plan costs nothing (for real) and includes unlimited invoices and estimates, expense tracking, bank reconciliation, and income and expense reports. That's a genuine double-entry accounting system, not a limited tool that keeps nudging you toward a paid plan a few features in.
For a solo owner or a business in its first year, there's no reason to pay for QuickBooks Online before you have the transaction volume or complexity to need it. Wave lets you build the habit of tracking income and expenses correctly from day one, without adding a software bill to a business that may not have consistent revenue yet.
Where the free plan stops being enough
Wave's Pro plan runs $16/month and adds receipt scanning, automatic bank imports, and priority support. Payroll is a separate add-on at $40/month plus $6/employee, and payment processing runs 2.9% + $0.60 per transaction, which is worth knowing before you assume everything about Wave is free.
None of that is unreasonable. It just means Wave stops being a no-cost tool the moment a business needs automatic bank feeds or has employees to pay. This is worth comparing: the add-on costs mentioned above against a platform built for that from the start.
Where it's not the right fit
Wave works well for a single-owner business with straightforward income and expenses. Once a business adds employees, needs multi-user access, tracks inventory, or wants project-level profitability reporting, it's outgrown Wave and it's time to move to something built for that growth (that's usually QuickBooks Online). It's also why we treat Wave as a starting point rather than a permanent home.
Not sure if your current setup still fits your business?
A Vibe Check is a good place to start. We'll look at what you're using now and whether it's still serving you. No pressure, just a clear picture. Schedule yours here.
Keep reading
- What QuickBooks Online gets right, and where it stops making sense — where most of our clients land once they outgrow Wave.
- Bookkeeping basics: what you need to track — the records every small business needs, regardless of what software you use.
This post is for general informational purposes and doesn't constitute a recommendation for your specific situation. Wave's pricing and features can change — confirm current details directly with Wave before deciding.