Wave
Wave is free, cloud-based accounting software aimed at freelancers and small businesses with simple financial needs. H&R Block acquired Wave in 2019 [citation needed].
What It Does
Wave provides accounting (double-entry, chart of accounts, financial reports), invoicing, and receipt scanning at no cost. It also offers payment processing and payroll as paid services — this is how Wave generates revenue. The accounting feature covers income and expense tracking, bank connections, and standard financial statements (balance sheet, income statement, cash flow).
Who It’s For
Freelancers, sole proprietors, and small businesses that don’t need inventory management, advanced reporting, or extensive integrations. Wave works well for service-based businesses — consultants, designers, contractors — who need to track income, send invoices, and produce basic financial reports without paying for accounting software.
Double-Entry Bookkeeping
Wave implements double-entry bookkeeping behind a simplified interface. Users record income and expenses, and the system maintains the underlying journal and ledger. The chart of accounts is pre-configured with common categories, and users can customize it. The double-entry structure is present but largely invisible to users who don’t want to engage with it.
Strengths
- Genuinely free for core accounting — not a freemium model with crippled features
- Simple enough for non-accountants to use without training
- Includes invoicing and receipt scanning at no cost
- Adequate for businesses with straightforward financial needs
Limitations
- Limited integrations compared to QuickBooks or Xero — Wave doesn’t have a comparable app marketplace
- No inventory management
- Reporting is basic and not customizable
- Scaling beyond a small operation is difficult — the feature set doesn’t grow with the business
- Fewer accountants are familiar with Wave than with QuickBooks
- Limited multi-currency support
Cost Model
Free for accounting, invoicing, and receipt scanning. Wave charges transaction fees for payment processing (credit card and bank payments through invoices) and monthly fees for payroll services. This model means Wave’s interests align with getting users to process payments through its platform.