Wave’s “free accounting software” claim is more accurate than most free-tier offers in software. The free features are genuinely functional, not crippled versions of a paid product. Here’s exactly what you get.
Core free features
Invoicing:
- Unlimited invoices
- Unlimited clients
- Customizable invoice templates
- Automatic payment reminders
- Recurring invoices for retainer clients
- Invoice viewed notifications (basic)
- Accept credit cards and bank transfers via Wave Payments
Accounting:
- Double-entry accounting (not simplified cash-basis — actual accounting)
- Chart of accounts
- Bank connections (auto-import transactions)
- Bank reconciliation
- Journal entries
Expense tracking:
- Connect bank accounts and credit cards
- Categorize transactions
- Receipt scanning via mobile app (free)
- Expense reports
Financial reports:
- Profit and loss statement
- Balance sheet
- Cash flow statement
- Sales tax report
- Aging reports (who owes you money)
For a freelancer doing their own bookkeeping, this is a complete toolset. The accounting is real accounting — not simplified tracking but actual double-entry with proper financial statements.
What costs extra
Wave Payments (payment processing): Wave’s built-in payment processing is the main cost. Rates:
- Credit and debit cards: 2.9% + $0.60 per transaction
- American Express: 3.4% + $0.60 per transaction
- Bank transfers (ACH): 1% per transaction, minimum $1
These are standard processing rates — not a premium over market. But they add up. On a $1,000 invoice paid by credit card, you pay $29.60. If you collect payment outside Wave (check, bank transfer to your account), you pay nothing.
Wave Payroll: $20/month base (self-service states) or $35/month (full-service states) plus $6 per employee or contractor. Only relevant if you have staff.
Wave Advisors: Access to bookkeeping support and coaching. Pricing varies by service level.
The key insight about Wave’s business model: they make money when you process payments, not when you use the software. If your clients pay by check or bank transfer outside of Wave, the entire accounting and invoicing suite costs you nothing.
What Wave doesn’t include
Time tracking: Wave has no built-in timer or hourly billing workflow. If you bill by the hour, you’ll need a separate time tracking tool (Toggl, Harvest, Clockify) and manually enter billable amounts as invoice line items.
Project management: Wave is an accounting tool, not a project management tool. No tasks, boards, or project status tracking.
Proposal creation and tracking: Wave can create estimates (basic) but doesn’t include a proposal builder, e-signature collection, or proposal view tracking. For freelancers who send proposals before invoices and want to know when clients are reviewing them, a dedicated tool like Waco3 handles that workflow — which then connects to invoicing when the proposal is accepted.
Strong mobile app: Wave’s mobile app covers the basics but isn’t as polished as the web version. The receipt scanning feature works well; invoice creation on mobile is functional but slightly awkward.
The Wave support situation
Free users have access to documentation and community forums. Email support is available but response times can be slow. Phone support isn’t available.
This is the honest tradeoff with free software. If you encounter a billing issue or need urgent help, Wave’s support isn’t fast. For most day-to-day use, the documentation is sufficient. For complex accounting questions, community forums are active.
Who Wave works best for
- Freelancers who want a complete, free accounting and invoicing tool
- Self-employed individuals comfortable managing their own books
- Freelancers who don’t need time tracking integrated with billing
- Anyone who wants real financial statements without paying for accounting software
Where to supplement Wave
Wave covers accounting well. What it doesn’t cover is the proposal-to-invoice workflow: if you send proposals, track client engagement, get digital signatures, and convert to invoices, you’ll want a dedicated tool for that part of the process and can use Wave for the accounting layer behind it.
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