Wave Accounting vs FreshBooks: Best Accounting Software for Small Businesses
In the ever-competitive world of accounting software, it can be tough to choose which one best suits your business's needs. Indeed, both Wave Accounting and FreshBooks are popular options for small to medium-sized businesses alike, but which one is right for your business? In this article, we'll take an in-depth look at both Wave Accounting and FreshBooks, comparing their features, pricing, ease of use, mobile capabilities, invoicing and payment options, expense tracking, customer support, security features, third-party integrations, and user reviews to help you decide which software is the best fit for your business.
Introduction to Wave Accounting and FreshBooks
Wave Accounting and FreshBooks are cloud-based accounting software that allow businesses to manage their finances seamlessly. Both of these software offer a range of similar features, such as invoicing, expense tracking, and payment processing. However, they also differ in a number of aspects, such as pricing, user reviews, and customer support. Understanding the features and benefits of both software can help small businesses select the best fit for their accounting needs.
One of the key differences between Wave Accounting and FreshBooks is their pricing structure. Wave Accounting is completely free to use, while FreshBooks offers a range of pricing plans depending on the size of your business and the features you require. This means that Wave Accounting may be a better option for small businesses or freelancers who are just starting out and have limited budgets.
Another important factor to consider when choosing between Wave Accounting and FreshBooks is their customer support. FreshBooks offers phone and email support, as well as a knowledge base and community forum, while Wave Accounting only offers email support. This may be a deciding factor for businesses that require more personalized support and assistance with their accounting software.
Overview of Wave Accounting and FreshBooks Features
While both Wave Accounting and FreshBooks are cloud-based accounting software, they have different features that can make them better suited for different types of small businesses. Wave Accounting has a more comprehensive set of features designed to suit freelancers and small business owners. Some of the essential features of Wave Accounting include:
- Invoicing
- Receipt tracking
- Bank account connectivity
- Expense tracking
In contrast, FreshBooks, while still tailored towards smaller businesses, has more project management features. These features include:
- Team collaboration
- Time tracking
- Project management
- Online payments
Another key difference between Wave Accounting and FreshBooks is their pricing models. Wave Accounting is completely free to use, with no hidden fees or charges. This makes it an excellent choice for small businesses that are just starting out and need to keep their expenses low. On the other hand, FreshBooks offers a free trial period, but after that, users must pay a monthly subscription fee to continue using the software. However, FreshBooks does offer more advanced features than Wave Accounting, which may be worth the investment for some businesses.
It's also worth noting that both Wave Accounting and FreshBooks offer mobile apps, which allow users to manage their finances on the go. These apps are available for both iOS and Android devices and offer many of the same features as the desktop versions of the software. This can be especially useful for freelancers and small business owners who are always on the move and need to stay on top of their finances at all times.
Pricing Comparison of Wave Accounting and FreshBooks
When it comes to pricing, both Wave Accounting and FreshBooks offer different packages designed to cater to small businesses with various needs. Wave Accounting offers:
- A free package with basic features suitable for freelancers and small business owners
- A paid premium package priced at $20 per month, designed for businesses that require more advanced features such as payroll processing, payment processing, and custom invoices
Conversely, FreshBooks operates an entirely different pricing model, which is based on the number of clients serviced:
- A basic FreshBooks plan that can serve up to 5 clients costs $15 per month
- A higher premium plan that can serve up to 50 clients costs $50 per month
Aside from pricing, Wave Accounting and FreshBooks also differ in terms of the features they offer. Wave Accounting has a user-friendly interface that allows users to easily navigate through the platform. It also has a mobile app that enables users to manage their finances on the go. On the other hand, FreshBooks has a more robust invoicing system that allows users to customize their invoices and automate payment reminders. It also has a time-tracking feature that enables users to track the time spent on each project and bill clients accordingly.
Another factor to consider when choosing between Wave Accounting and FreshBooks is their customer support. Wave Accounting offers email support and a comprehensive knowledge base that contains helpful articles and tutorials. FreshBooks, on the other hand, offers phone and email support, as well as a live chat feature that enables users to get real-time assistance from a customer support representative. Additionally, FreshBooks offers a 30-day free trial, which allows users to test the platform before committing to a paid plan.
Ease of Use Comparison Between Wave Accounting and FreshBooks
Another critical comparison element is the ease of use for both Wave Accounting and FreshBooks. Wave Accounting is quite user-friendly, and many of its essential features are easily accessible on the dashboard. On the other hand, FreshBooks is more customizable, which can lead to a steeper learning curve for new users. However, its interface is intuitive and well-organized, making it easy to navigate.
It's worth noting that both Wave Accounting and FreshBooks offer extensive help and support resources to their users. Wave Accounting has a comprehensive knowledge base, with articles and tutorials covering a wide range of topics. FreshBooks, on the other hand, offers 24/7 customer support via phone, email, and live chat, as well as a community forum where users can ask questions and share tips. This level of support can be especially helpful for new users who may need additional guidance as they get started with the software.
Mobile App Comparison of Wave Accounting and FreshBooks
Nowadays, it is becoming increasingly crucial for businesses to use software that is easily accessible on the go. Wave Accounting has an app that is available for both iOS and Android, designed to offer users the same features as the desktop version. FreshBooks mobile app is also available for both iOS and Android and allows users to manage their finances on the go.
However, there are some differences between the two apps. Wave Accounting's mobile app has a simpler interface, making it easier for users to navigate and find what they need quickly. On the other hand, FreshBooks mobile app has a more comprehensive set of features, including the ability to track time and expenses, which can be useful for businesses that bill clients based on hours worked or expenses incurred.
Invoicing Capabilities Comparison of Wave Accounting and FreshBooks
Both Wave Accounting and FreshBooks have powerful invoicing capabilities. Wave Accounting allows you to customize invoices with your company logo and enables you to send invoices from your dashboard. On the other hand, FreshBooks allows you to create more advanced invoices that include billable time and expenses, recurring invoices, and deposits.
Payment Processing Options Available on Wave Accounting and FreshBooks
When it comes to processing payments, both Wave Accounting and FreshBooks offer multiple options. Wave Accounting enables users to accept payments through credit card processing, ACH payments, and PayPal. FreshBooks, on the other hand, offers payment gateways such as PayPal, Stripe, and Authorize.net and also enables credit card processing.
Expense Tracking Options Offered by Wave Accounting and FreshBooks
Tracking expenses is essential for any small business, and both Wave Accounting and FreshBooks excel in this area. Both software allows you to track your expenses and create custom expense categories. However, Wave Accounting offers more advanced features such as automatic imports of bank accounts and tools that let you track your business and personal expenses separately.
Customer Support Comparison Between Wave Accounting and FreshBooks
Customer support is critical when selecting an accounting software, and both Wave Accounting and FreshBooks offer different support channels. While Wave Accounting is free, it has limited support options, including email and a small knowledge base. FreshBooks, on the other hand, has a more comprehensive help center and provides phone, email, and live chat support.
Security Features Offered by Wave Accounting and FreshBooks
Data security is a crucial concern when selecting a cloud-based accounting software. Both Wave Accounting and FreshBooks take data security seriously and have put measures in place to protect users' data. FreshBooks has also enabled two-factor authentication, which is an excellent security feature to prevent unauthorized access to your account.
Third-Party Integrations Available on Wave Accounting and FreshBooks
Third-party integrations are vital for businesses that want to streamline their workflow and make accounting a more seamless process. Both Wave Accounting and FreshBooks have integrations with popular third-party applications, including Stripe, PayPal, and Zapier. FreshBooks, in particular, has a more extensive range of integrations with popular business applications, including Trello, Asana, and Basecamp.
User Reviews of Wave Accounting and FreshBooks
When selecting an accounting software, reviews from users can provide excellent insight into the software's strengths and weaknesses. Based on user reviews, Wave Accounting has a better overall rating than FreshBooks, primarily because of its ease of use, pricing, and customer support. However, FreshBooks has a more diverse range of features and a more customizable interface, making it more advanced than Wave Accounting.
Which Software is Best Suited for Freelancers?
Wave Accounting is best suited for freelancers because it's free to use and offers features tailored towards freelancers, such as invoicing, receipt tracking, and expense tracking.
Which Software is Best Suited for Small Businesses?
For small businesses, FreshBooks is a great option because it offers advanced project management features such as team collaboration, time tracking, and project management, in addition to invoicing and expense tracking.
Which Software is Best Suited for Medium-Sized Businesses?
For medium-sized businesses, FreshBooks would be a better option as it can handle a more significant number of clients and has more advanced project management features.
Conclusion: Which Accounting Software Should You Choose?
Based on our extensive comparison of Wave Accounting and FreshBooks, we recommend Wave Accounting for freelancers and small businesses with basic accounting needs. Its free package offers essential features such as invoicing, receipt tracking, and expense tracking, making it a great option for those just starting. However, if you're a small business that requires more advanced project management features, FreshBooks is an excellent option. While it may be more expensive than Wave Accounting, its range of features including team collaboration, time tracking, and project management make it an excellent investment for businesses looking to streamline their workflow and increase productivity.
