Wave vs Xero
Wave vs Xero: Free Books or Full Accounting?
This is a cost-versus-depth decision. Wave gives small businesses free double-entry accounting and unlimited invoicing, funded by payment and payroll fees. Xero is a paid, full cloud accounting platform built to scale, with bank feeds, a big app marketplace and an accountant ecosystem. The question is whether free is enough or you need the fuller suite.
Wave vs Xero: feature comparison
Feature comparison of Wave, Xero and Auritrack
| Feature | Wave | Xero | Auritrack |
|---|---|---|---|
| AI chat expense tracking | No | No | Yes |
| AI bookkeeping & categorization | Bank rules and auto-categorization | Bank rules plus its Just Ask Xero AI assistant | Yes |
| Automatic bank sync | YesBank connections on the Pro plan | YesAutomatic bank feeds | On the roadmap; statement import today |
| Bank-statement import (PDF/CSV/Excel) | YesCSV upload | YesCSV and bank statement import | YesPDF, CSV or Excel, read by AI |
| Budgeting | NoReports, not category budgets | YesBudget manager for business budgets | Yes |
| Savings goals | No | No | Yes |
| Invoicing | YesUnlimited invoices, its core feature | YesCore feature, with online payments | Small-business records and reports |
| Receipt scanning | Mobile receipt scanning as a paid add-on | YesReceipt capture via Hubdoc | Yes |
| All currencies with live conversion | Multi-currency invoicing | On the Established plan only | YesLive exchange rates |
| Data export (PDF/CSV) | YesCSV and accounting reports | YesCSV and full accounting reports | YesPDF and CSV anytime |
| Telegram tracking | No | No | Yes@auritrack_bot |
| Investment tracking | No | No | No |
| Shared / household accounts | NoBusiness, not household | NoBusiness, not household | Yes |
| Sells your data to advertisers | No | No | No |
| Price | Free plan + Pro ~$16/mo | From $25/mo | Free tier + AI from $3/mo |
Which of the two should you pick?
Where Wave wins
- Genuinely free accounting and unlimited invoicing on the Starter plan
- Built-in card and bank payments
- Add-on payroll when you need it
- Low cost of entry for very small businesses
Where Xero wins
- Full double-entry accounting that scales as you grow
- Unlimited users on every plan
- A large app marketplace and strong accountant ecosystem
- Receipt capture via Hubdoc and automatic bank feeds
A third option: Auritrack
Both Wave and Xero are proper accounting tools; Xero is the fuller platform and Wave the free-to-start one. Auritrack is lighter than either: it does AI bookkeeping for solo and micro businesses that do not need full double-entry, on a free tier for manual tracking with AI plans from $3/month or pay-as-you-go Auricoins. It has no live bank sync yet, so you upload a statement instead of connecting a feed.
The verdict
Choose Wave if you want real accounting and invoicing without a subscription and can live with payment fees. Choose Xero if you need a full platform that scales, works with your accountant and connects to lots of apps. If double-entry accounting is more than you need, an AI tool like Auritrack tracks income and spending from a chat or a statement.
Frequently Asked Questions
Want to dig into one of them on its own? Read the Wave guide or the Xero guide, each an honest look at where that tool wins and where Auritrack fits.
Comparisons reflect our understanding of each product at the time of writing and may change; check each provider’s site for current pricing and features. Product names and trademarks belong to their respective owners. This page is general information, not financial advice.