Running a small business often means tracking finances with spreadsheets or basic software that lacks key features.
Wave Accounting aims to solve this problem by providing a full-featured, user-friendly accounting platform tailored for entrepreneurs and free of charge.
In this review, we'll explore Wave's main capabilities for invoicing, payments, payroll, reporting, expense tracking, and more to see if it delivers on its promises for solopreneurs and small teams.
Introduction to Wave Accounting
Overview of Wave Accounting
Wave Accounting is a free, cloud-based software that provides a suite of financial tools for small businesses and entrepreneurs. Key features include:
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Invoicing: Create professional invoices, track payments, and manage recurring billings. Automatically calculates tax rates and accepts credit card payments.
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Accounting: Track income and expenses, generate financial statements and reports. Seamlessly integrates with bank accounts.
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Payroll: Pay employees and contractors, calculate payroll taxes, and file payroll tax forms. Direct deposit available.
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Payments: Accept credit card payments online via Stripe integration. Manage payments in one place with the accounting software.
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Receipts: Scan receipts and track business expenses. Wave automatically categorizes purchases to simplify expense tracking.
As Wave Accounting is completely free with unlimited use, it's an attractive option for bootstrapped startups and small businesses looking to manage finances without paying for accounting software.
Key Benefits of Wave Accounting
The core value proposition of Wave Accounting includes:
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Cost Savings: 100% free accounting software helps entrepreneurs cut costs significantly compared to paid options.
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Simplicity: Intuitive dashboards and reports make financial management simple for non-accountants. Easy to track income, expenses, balance sheets, and cash flow.
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Mobility: Cloud-based access via web and mobile apps enables remote financial management from anywhere.
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Scalability: Built for small business growth with features designed to scale as companies grow.
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Integrations: Connects with payment processors, bank accounts, invoicing software, and other business tools.
For bootstrapped entrepreneurs and small business owners, Wave Accounting can be an invaluable tool for organizing finances without expensive accounting software. The extensive features, simplicity of use, and free cost make it an appealing platform for managing all critical money matters in one place.
Core Features and Tools
Wave's core features and tools provide user-friendly financial management for entrepreneurs and small businesses.
User-Friendly Invoicing
Wave's invoicing software enables users to easily create, send, and track invoices. Key features include:
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Intuitive interface to quickly generate professional invoices
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Automatic payment reminders sent to clients to prompt timely payment
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Clear visibility into invoice status and payment history
With Wave Invoicing, entrepreneurs can save time creating and managing invoices while ensuring timely payment.
Payment Processing
Wave offers secure payment processing so users can accept credit cards and bank payments directly from clients. Options include:
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PayPal integration to accept credit card payments through a trusted provider
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Stripe integration for easy credit card transactions
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Bank transfers for quick direct bank payments
By processing payments through Wave, small business owners can get paid faster while keeping financials organized in one place.
Payroll Management Capabilities
Wave's payroll software aims to simplify payroll processing for small businesses. Here are some of its key capabilities:
Payroll Tax Handling
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Automatically calculates federal, state, and local payroll taxes based on latest tax tables
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Supports tax payments and filings for Form 941, 940, W-2, and 1099
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Integrates with accounting software to record tax liabilities and payments
Employee Pay Options
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Supports multiple pay options including direct deposit, paper checks, PayPal, and debit cards
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Allows setting up different payment methods for each employee
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Features customizable pay schedules (weekly, bi-weekly, monthly, etc.)
By automating tax calculations and filings, Wave Payroll reduces the administrative workload for small business owners. The flexibility to pay employees via direct deposit or other methods also streamlines payroll processing. Overall, Wave aims to provide an affordable, user-friendly payroll solution for entrepreneurs and small teams.
Financial Reporting and Analysis
Wave provides robust financial reporting and analytics tools to help entrepreneurs and small businesses effectively track and analyze key metrics.
Standard Financial Reports
Wave includes preset reports for all essential financial statements including:
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Profit & Loss Statements: View revenue, expenses, and profitability over any date range. Easily filter reports by location, category, employee, etc.
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Balance Sheets: Get snapshots of business assets, liabilities, and equity on chosen dates. Monitor changes over time.
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Accounts Receivable & Payable: Manage customer invoices and vendor bills efficiently. Wave tracks both outstanding and paid.
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Cash Flow Analysis: Understand true business liquidity by analyzing operating, investing, and financing activities.
These standard reports cover all core financials and can be exported, printed, or shared at any time with just a few clicks.
Advanced Reporting
For more customized analysis, Wave offers an advanced reporting feature to build financial reports and interactive dashboards tailored to your business's specific needs.
Capabilities include:
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Custom report builder with drag-and-drop simplicity.
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Filter and display only the most relevant metrics.
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Schedule reports to run automatically on chosen intervals.
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Build insightful charts and graphs for easy data visualization.
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Set targets and benchmarks to track performance.
With Wave's flexible tools, entrepreneurs can gain data-driven clarity into their company's financial health and make smarter decisions to drive growth.
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Expense Tracking Features
Expense tracking features in accounting software provide critical functionality for businesses to capture, categorize, and monitor various expenditures. This enables proper record keeping for tax purposes and gives visibility into spending patterns over time.
Receipt Management
The ability to upload and attach receipts to individual expense line items is a key feature. This links proof of purchase directly to the recorded expense for reporting and compliance needs.
Key receipt management capabilities include:
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Uploading images of paper receipts via mobile app for easy capture
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Extracting key details from receipts to auto-populate expense details
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Viewing and accessing all receipts directly from related expenses
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Setting reminders for receipt submission to improve compliance
Seamless receipt management eliminates paperwork and manual data entry, saving time while ensuring expenses have documentation.
Expense Analytics
Analyzing expenses is vital for businesses to control spending and inform budgeting. Expense analytics features can provide real-time and historical insight into company expenditures.
Useful expense analytics include:
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Reports showing spending by category over custom time periods
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Charts highlighting top vendors or expense categories
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Budget vs actual comparison to monitor alignment
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Employee spending profiles to optimize policies
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Exportable raw data for additional processing
With robust analytics, businesses can identify wasteful spending, set budgets, adjust policies, and optimize future costs. Tight expense control improves profitability.
Wave Accounting Mobile Apps
Wave offers iOS and Android apps so entrepreneurs can manage finances on-the-go with invoicing, snapping receipts, approvals, and more. The mobile apps provide key features to help users run their business from anywhere.
Key Mobile Features
The Wave mobile apps allow users to:
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Create and send professional invoices on the go
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Record expenses by snapping photos of receipts
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View real-time reports and metrics about their business
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Accept credit card payments directly through the app
By handling these critical finance tasks on a mobile device, Wave provides the flexibility busy entrepreneurs need to manage their business finances on the go.
Working On-the-Go
Wave's user-friendly mobile apps give entrepreneurs the power to handle accounting tasks no matter where they are. Features like mobile invoicing, receipt tracking, and real-time reporting make it simple to keep finances on track when working remotely or traveling.
Rather than waiting until you're back at your computer, you can quickly create and send an invoice from your phone during a client meeting or snap a receipt to record an expense while away from the office. Wave connects the back-office accounting to a mobile experience designed specifically to help busy entrepreneurs improve efficiency by enabling easy access to key accounting features anytime, anywhere.
Security
Wave provides robust security measures to protect sensitive financial data. This includes bank-level encryption, access controls, and compliance with data protection standards.
Encryption and Access Controls
Wave utilizes 256-bit SSL encryption, the same level used by banks, to secure all transmitted data. Additionally, Wave implements role-based access controls on user accounts and financial data. This ensures that employees only have access to the data they need to do their jobs.
Data Protection Standards
To provide assurance around financial data security, Wave complies with several international standards:
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SOC 2 Type 2 - Audited standard for financial data security from the American Institute of Certified Public Accountants.
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PCIDSS - Payment Card Industry Data Security Standard protects debit and credit card data.
By complying with these rigorous standards, Wave provides peace of mind that financial data remains protected through encryption, access controls, and more.
Customer Support Options
Wave offers several customer support options to help users with questions or issues regarding the software.
Self-Service Knowledge Base
The Wave knowledge base contains extensive documentation and tutorials to assist users in learning and troubleshooting on their own. Topics range from getting started guides to technical setup instructions.
There is also an active user forum where community members help each other with common questions. Between the knowledge base and community support, many users are able to self-serve answers without having to contact customer service directly.
Direct Support Channels
For issues that require one-on-one assistance, Wave provides email, phone, and live chat channels. Support specialists are available during business hours to troubleshoot problems and walk users through solutions.
Common queries handled by direct support include:
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Account setup and configuration
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Importing and reconciling transactions
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Generating financial statements and reports
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Clarifying features and product capabilities
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Troubleshooting errors and technical problems
Wave's customer support team aims to respond quickly and resolve tickets on the first contact. They have in-depth expertise to answer both basic and advanced product questions.
Conclusion and Summary
Wave Accounting provides a robust set of financial management tools for lean startups and small businesses at an unbeatable free price point. For entrepreneurs and microbusiness owners on a tight budget, Wave delivers core accounting functionalities to track income and expenses, manage invoices and payments, generate financial statements, and simplify payroll.
While the software lacks some advanced features of paid solutions, Wave covers the essentials for most bootstrap companies. The intuitive interface and abundance of helpful guides make it easy for non-accountants to get up and running quickly. Automations and integrations further streamline financial workflows.
So if you're looking to professionally manage your books without breaking the bank, Wave Accounting merits strong consideration. The platform can support your business growth for quite some time before more sophisticated tools become necessary.
Who Should Use Wave Accounting
Wave Accounting best suits the needs of:
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Early-stage startups and lean entrepreneurs
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Freelancers, solopreneuers, and microbusinesses
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Small companies with straightforward financials
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Non-accountants wanting easy DIY bookkeeping
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Businesses needing free yet full-featured accounting software
Users that outgrow Wave's capabilities can export their data to transfer to more scalable solutions down the road.
Parting Thoughts
For the price, Wave Accounting delivers an exceptional free product that covers essential financial management needs for bootstrapped small businesses. The intuitive interface, abundance of educational resources, and ecosystem of integrated services make Wave a great way for entrepreneurs to start properly managing their finances without high software costs.
While Wave lacks some advanced accounting features, it provides tremendous value given its free cost. Overall, Wave merits strong consideration for lean startups and small companies needing basic DIY accounting tools.
