Wave vs Xero: Which Should You Choose in 2026?
Choosing between Wave and Xero comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
By Toolradar Team · Last updated February 28, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
Wave
Free invoicing & accounting
Best for you if:
- • You want to try before committing
- • Wave is free accounting software for small businesses
- • It provides invoicing, accounting, and receipt scanning at no cost
Xero
Beautiful accounting software
Best for you if:
- • You want the higher-rated option (8.6/10 vs 8.0/10)
- • Xero is cloud accounting software for small businesses
- • It provides invoicing, bank reconciliation, and financial reporting
| At a Glance |  Wave |  Xero |
|---|---|---|
Price | Free + Paid | Paid |
Best For | Accounting | Accounting |
Rating | 80/100 | 86/100 |
| Feature | Wave | Xero |
|---|---|---|
| Pricing Model | Freemium | Paid |
| Editorial Score | 80 | 86 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | AccountingInvoicing | AccountingInvoicing |
How Wave and Xero Compare
Wave
Free invoicing & accounting
Free tier available · 80/100 score
Xero
Beautiful accounting software
Paid · 86/100 score
Who Should Use What?
On a budget?
Wave has a free tier. Xero is paid only.
Go with: Wave
Want the highest-rated option?
Wave: 80/100. Xero: 86/100.
Go with: Xero
Value user reviews?
Neither has user reviews yet.
Go with: Xero
3 Questions to Help You Decide
What's your budget?
Wave is freemium. Xero is paid. Wave lets you start free.
What's your use case?
Both are accounting tools. Compare their specific features to decide.
How important are ratings?
Xero scores higher: 86/100 vs 80/100.
Key Takeaways
Xero
- Higher score: 86/100 vs 80
- Our pick for this comparison
Wave
- Has a free tier
The Bottom Line
Xero (86/100) is our pick. Wave has a free tier if you want to test without paying.
Frequently Asked Questions
Is Wave or Xero better?
Xero scores 86/100 in our evaluation. Wave is freemium and Xero is paid.
What are Wave and Xero used for?
Wave: Free invoicing & accounting. Xero: Beautiful accounting software.
What does Wave cost vs Xero?
Wave is freemium (free tier + paid plans). Xero is a paid tool. Visit their websites for detailed pricing.