Discover the features of FreshBooks and Wave and compare which is better for your company in 2023. Discover which software application is the most appropriate for your accounting needs.
Image: Rebecca Olason/TechRepublic When your company needs accounting services, there are various alternatives available. If you’re an enterprise organization, you probably have an accounting department, staffed with the very best and brightest. If you’re an SMB, you do not always have that high-end and must rely on services and software options. If you’re a freelancer, maybe you simply require an easy option for keeping your numbers in line.
Worry not– there are services readily available that are terrific at assisting you with your finances, a lot of which are more budget-friendly than, state, QuickBooks. What are these choices? Let’s have a look at two: FreshBooks and Wave.
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What is FreshBooks?
FreshBooks is an invoicing and accounting software tailored toward small companies. With a focus on ease of use, FreshBooks uses solutions for freelancers, self-employed professionals, services that depend on contract work and basic companies with staff members.
FreshBooks initially began as a tool for managing billings and ultimately progressed into a full-blown accounting platform. Based in Toronto, FreshBooks services over 160 nations and is among the easiest-to-use accounting platforms on the marketplace. Even if you don’t speak proficient “accounting,” you’ll still be able to make use of the software.
In my personal experience, FreshBooks made me seem like I understood my method around numbers when in truth I constantly battled with accounting. If FreshBooks can work for someone like me, it’ll attract business-minded individuals.
What is Wave?
Wave calls itself “one-stop finance for small company owners” by providing monetary services for small companies. Wave streamlines the procedure of creating and sending out billings and assists you to remain arranged ahead of tax season. Wave has an in-house group of bookkeeping, account and payroll coaches to assist reduce the concern when things get made complex.
Wave can assist you with your billings, payments, accounting, banking and payroll so you can stop going after clients for cash, get paid faster, track income and expenditures, simplify your banking, pay your staff and get assist when required.
FreshBooks vs. Wave: Function comparison table
| Freshbooks | Wave | |
|---|---|---|
| Invoicing and tracking | Yes | Yes |
| Sales tax and collection tracking | Yes | Yes |
| Track unpaid expenses | Yes | Yes |
| Capture expense invoices | Yes | Yes |
| Reconcile savings account | Yes | Yes |
| Manage projects | Yes | No |
| Inventory tracking | No | No |
| Activity tracking | Yes | Yes |
| Track set assets | No | No |
| Phone assistance | Yes | No |
| Payroll combination | Gusto | Wave Payroll |
| ACH Payment processing | Yes | Yes |
| Accounting combination | Yes | Yes |
| Activity control panel | Yes | Yes |
| Accounts receivable | Yes | Yes |
| Accounts payable | Yes | Yes |
FreshBooks functions, rates, advantages and disadvantages
Functions
The features provided by FreshBooks depend on the plan you choose, of which there are 4:
- Lite: 5 billable customers, unlimited and customizable billings (Figure A), unlimited expense entries, endless estimates, accepts credit card payments and ACH bank transfers, automated bank importing, unrestricted time tracking, tax reports and sales tax tracking, and mobile mileage tracking.
- Plus: All features in Lite, plus 50 billable customers, automatic invoice scanning with the mobile app, double-entry accounting reports and company health reports, customer retainers, accounting professional access and bank reconciliation tools.
- Premium: All features in Plus as well as unrestricted billable clients, tailored e-mail templates and signatures, track job profitability and accounts payable tracking.
- Select: Whatever in Premium plus access for 2 employee, a personal account manager, customized training and lower charge card deal rates.
Figure A
Premium:$55 per month
- or$660 annually. Select: Contact FreshBooks for a quote.
- Pros Simplified expense tracking.
- Detailed time tracking. Seamless project cooperation.
- Financial reports easy to produce.
- Mobile app makes it easy to work with financials on the go.
- Easy access to tax advisers and other accounting professionals.
- Half the cost of QuickBooks.
Cons
- WePay combination suggests paying the higher processing rates of $0.30 per deal plus 2.9% of the total.
- The mobile app doesn’t provide you access to reports.
- Does not work well for bigger, more complicated services.
- Couple of modification alternatives.
- Expenses additional to include extra team members.
Wave functions, pricing, benefits and drawbacks
Functions
- Unlimited tracking for income and expenditures.
- Adjustable sales tax.
- Unlimited bank and credit card integrations.
- Accounting reports and financial declarations can be exported.
- Dashboard for at-a-glance cash balances and billing statuses.
- Digital invoice upload and transaction management.
- Endless invoicing (Figure B).
- Payment tips.
- Price quotes can be converted to invoices upon approval.
- Online credit card payments (costs apply).
- Optional invoice and account syncing.
- Produce and send invoices, then monitor their payment status through alerts.
Figure B
Developing a billing with FreshBooks. Pricing Wave invoicing, account and banking functions are totally free to utilize. There are, nevertheless, add-on services and transaction costs.
For the Payroll functions, it’s a $40 per month charge plus $6 per active staff member and/or $6 per independent contractor paid. You can also pay $149 per month for booking support and/or a one-time $379 fee for accounting and payroll coaching.
The Wave deal charges are 2.9% + $0.60 USE per deal, 3.4% + 0.60 per AMEX transaction, and 1% per bank payment deal with a $1 USD minimum.
Pros
- Free service for fundamental accounting needs.
- Limitless users and monetary accounts.
- Highly customizable invoicing.
- Very easy to use UI.
- Comprehensive online assistance center.
- The neighborhood online forum permits you to get assist from the Wave user neighborhood.
Cons
- Not scalable for bigger companies.
- No time tracking.
- Basic reporting choices.
Which software application to select for your business
The choice between FreshBooks and Wave is simple. Wave is complimentary for unlimited users, clients and accountant access. Although FreshBooks does have more advanced accounting functions, you can get most of those same options with Wave and not pay a cent. The only disadvantage to Wave is that it scales less well than FreshBooks.
In the end, if you’re a small company or freelancer and do not have the budget for an accounting or invoicing service, Wave is your best choice. Nevertheless, if you plan to scale your company and do not mind paying a bit more in charges, FreshBooks is what you desire.
For more associated material, take a look at FreshBooks vs QuickBooks, and the top invoicing apps for small businesses and self-employed people.
