Wave
FreeFree accounting and invoicing for small businesses
About Wave
Wave is the free accounting software for very small businesses — invoicing, bank reconciliation, and financial reports are genuinely free with no subscriber limits or trial expiration. The business model: Wave earns from payment processing (2.9% + $0.60 for cards, 1% for ACH with $1 minimum) and payroll ($20/month base + $6/employee for most US states, $35/month base in Canada). The free tier covers invoicing, receipt scanning, bank connections, and basic financial reporting for unlimited users and invoices. It works for freelancers and micro-businesses under roughly $500K revenue who want basic accounting at no cost. The main limitations: Wave's support is paid only ($149/month for the Advisor add-on with live bookkeeping help), accounting features are behind QuickBooks and Xero for anything complex, and the payment processing fees are higher than Stripe for high-volume transactions. Acquired by H&R Block in 2019, which has not materially changed the product. r/personalfinance recommends it as the starting point for anyone not yet ready to pay for accounting software. Best for freelancers, sole proprietors, and very small businesses where free is the primary requirement.
Key Features
Pricing Plans
Free
- Unlimited invoicing
- Accounting and reporting
- Receipt scanning
- Bank connections
Pro
- Everything in Free
- Unlimited receipt scanning
- Checkout links
- Priority support
Pros
- Core accounting and invoicing are completely free
- No client or invoice limits
- Clean and simple interface
- Good for freelancers and solopreneurs
- Receipt scanning via mobile app
- No credit card required to start
Cons
- Limited integrations compared to competitors
- No inventory management
- Payroll is a paid add-on
- Payment processing fees are standard not discounted
- No project tracking or time tracking
- Reporting is fairly basic
Best For
- freelancers and sole proprietors who want free accounting software with no trial expiration
- micro-businesses under $500K revenue that need basic invoicing and expense tracking
- side projects and early-stage companies not yet ready to pay for QuickBooks
- businesses comfortable with higher payment processing fees in exchange for zero subscription cost
Not Ideal For
- businesses with complex accounting needs beyond basic P&L and invoicing
- high-volume card payment processing where 2.9% + $0.60 becomes expensive vs Stripe
- teams that need live accounting support without paying for the Advisor add-on
Potential Deal Breakers
- customer support requires a $149/month paid add-on for live help
- payment processing fees (2.9% + $0.60) are higher than Stripe for high volumes
- accounting features are significantly limited vs QuickBooks or Xero for complex needs
Data & Privacy
Free accounting software owned by H&R Block. Supported by ads on the free tier. Financial data may be used for product improvement. Canadian-hosted. Full financial data exportable. Ad-supported model means some data sharing with partners.
Who Is This For?
Hands-on tested May 2026
Signup Experience
Email signup with no credit card required. Accounting, invoicing, and receipt scanning are all available immediately on the free plan. Dashboard is clean and the chart of accounts is pre-configured for small business use. Payroll is an add-on that requires a separate setup step.
For Home Users
Free invoicing and accounting with no subscriber or invoice limits is genuinely useful for freelancers and side projects. Receipt capture via mobile app works well. The ad-supported model means some financial data is used for product improvement, which is a trade-off worth knowing. Best free accounting option for solo operators and freelancers.
For Business Users
Free plan covers invoicing, accounting, and receipt management for unlimited clients. Payroll at $20/mo base plus $6/employee handles US and Canadian payroll. Payments processing (2.9% + 30c) is available for invoice payment. Feature depth is below QuickBooks or Xero -- no inventory management, limited reporting, and no advanced multi-entity support. Right for small businesses under 10 employees who want zero software cost.
Our Verdict
Wave delivers on its promise — free accounting software that is genuinely usable for freelancers and small businesses. The ceiling arrives fast: complex accounting, inventory, payroll, and decent support all require paying either Wave or switching to QuickBooks. If free is the constraint and your needs are simple, Wave is the right starting point.