Xero has a pretty advanced inventory management feature that’s available on all plans. With this feature, you can add products and services, track inventory, make adjustments, and add attachments. Xero does not offer a built-in payroll but integrates nicely with Gusto. Payroll plans the rules for accounting inventory debit and credits through Gusto start at $40/month plus $6/month per employee. Xero also does not have built-in payment processing, but you can choose from several third-party processors.
There are a myriad of software options out there, boasting diverse sets of features. They all hold great potential to help you out in handling your company finances and invoicing. Moreover, even though Xero isn’t difficult to use by any means, Wave’s ease of use is particularly noteworthy.
The pros of Xero
Another expense to keep in mind is that while Xero supports multiple businesses under one account, each business will be charged a separate monthly subscription fee. This could add up quickly for users who want to balance the books for multiple businesses. The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections.
- This is ideal for businesses that want everything in one place without having to worry about integrations.
- Perhaps one of the biggest differences between Xero vs. Wave is that Wave is a free accounting software.
- Xero’s stand-out integrations extend to third-party payroll software.
- Xero offers these three crucial reports with every plan, but even its basic plan users can get cash-flow forecasting 30 days into the future (that limit extends to 90 days with the Established plan).
Both of these add-ons are generally affordable, fully functional, and give you extended capabilities that sync seamlessly with your Wave account. Additionally, with the highest-level plan, Established, you’ll receive project management tools that Wave does not offer. Overall, although Wave does include some features (for free) that require the Xero Established plan—expenses and multi-currency—Xero still offers a greater range of functionality within their bookkeeping vs accounting platform. When it comes down to it, both Xero and Wave are web-based accounting software platforms—known for their functionality, ease of use, and accessibility.
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Wave recently added a paid plan, Wave Pro, which costs $16 per month if billed monthly or $170 per year if billed annually. With the more advanced paid plan, users get the option to add unlimited users, assign custom permissions, automate bank transaction imports and accept payments at a lower transaction fee. For is insurance in accounting recognized as an expense or an asset no cost, Wave Accounting Starter lets its users send an unlimited number of invoices, accept online payments, track income, sync bank accounts and manage more than one business.
QuickBooks Online
The software is easy to navigate, and there are plenty of support resources available to help you make the most of the software. Although Xero says it makes “small business” software, the steep pricing and depth of features are much more suitable for mid-to-large-sized businesses. Setting Xero up for your business is easy because it follows a step-by-step process. There’s enough white space on the web page in case you’re multitasking on one computer screen.
QuickBooks Online is the better choice than either Xero or Wave if you’re looking for local bookkeeping support. This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply. I accept the Terms of Use and Privacy Policy and agree that SoftwareReviews and relevant software vendors may contact me regarding my request. Use this section to compare high-level metrics to quickly understand what matters most to you and contrast any major gaps between your options.
One drawback of Wave’s invoicing is that discounts and sales tax must be added manually. Join the thousands of people like you already growing their businesses and knowledge with our team of experts. We deliver timely updates, interesting insights, and exclusive promos to your inbox.