Wave

Wave (waveapps.com) is a cloud-based financial management platform built for small businesses and freelancers. It was founded in 2010 and is headquartered in Toronto, Canada. Wave directly solves the high cost of accounting software by offering a free core plan.

Features

• Invoicing and Estimates: Users can create unlimited professional invoices and estimates. The Pro Plan removes Wave branding from invoice footers. Customers pay directly from the invoice via credit card or bank transfer.
• Automated Bank Reconciliation: The Pro Plan connects bank accounts via Plaid. Wave automatically imports, merges, and categorizes transactions. This eliminates manual data entry from spreadsheets.
• Receipt Scanning with OCR: The mobile app uses optical character recognition to scan receipts. Users capture, categorize, and upload expense receipts on the go. This feature is included in the Pro Plan or available as an $8/month add-on.
• Online Payment Processing: Wave processes Visa, Mastercard, Discover, and Amex payments. Pro Plan rates start at 2.9% + $0 per transaction for the first ten monthly transactions. The platform uses 256-bit SSL encryption and is PCI-DSS Level 1 compliant.
• Payroll Add-On: Wave Payroll is available as a paid add-on at $40/month base, plus $6 per active employee. It automates payroll accounting entries and supports both employees and contractors. This add-on is separate from the core Starter and Pro plans.

Use Cases

• For Freelancers: The free Starter Plan covers unlimited invoicing, basic bookkeeping, and cash flow tracking. No accounting background is needed to get started.
• For Small Service Businesses: Owners can track unpaid bills, compile income and expenses, and print balance sheets. These reports directly support tax filing without hiring a full-time accountant.
• For Businesses with Field Purchases: The mobile receipt scanning feature lets users photograph and categorize receipts instantly. All data syncs automatically to the main Wave account.
• For Growing Teams: The Pro Plan allows business owners to add collaborators, such as accountants or editors, with role-based access. Supported roles include admin, editor, viewer, and payroll manager.

Wave is a capable free accounting tool best suited for small businesses, freelancers, and solopreneurs with basic financial management needs. More advanced users may find it limiting compared to paid alternatives like QuickBooks, particularly for inventory tracking or deep reporting.