Wave Accounting is one of the newer entry-level accounting applications to launch in the past few years. Introduced in 2010, the product didn’t take off until just the past few years but it has a strong following among very small companies. In fact, Wave is very clear about their target market stating their audience is “freelancers, contractors, entrepreneurs, and owners of companies with 9 employees or less that we keep in mind. (Happily, bigger companies love Wave, too.)”
The company claims to have 1.7 million customers in over 200 countries. Not bad for a business that’s only been around for about 5-6 years. Not bad at all.
Wave is relatively basic – it provides for simple accounts receivable and accounts payable with basic financial reporting. They also offer small business payroll.
Wave accounting and invoicing is free, completely, 100% free. They also offer a receipts tracking application for free as well. They do this by generating revenue from advertisers whose offers are displayed in the application. These are ads from companies like AMEX, Staples, Dell, and others. It’s actually a pretty ingenious idea (we had that idea years ago so kudos to Wave for making it happen). Their credit card processing rates are competitive at 2.9% plus 30 cents per transaction. You could get lower rates elsewhere but not many small business owners care because hey – free software. Payroll is also very affordable at $15 per month plus $4 per employee.
Wave is catching on and they have an accountants and bookkeepers network if you need assistance with your financials.
Wave is consistently voted and rated as the best free accounting software on the market but keep in mind that you get what you pay for. While the application is good for a small business, the lack of features limit it for growing companies that need inventory, manufacturing, project management, and retail point of sale capabilities.
Unlike competitors, Wave does not have an app marketplace so there are no third party products available to extend the software’s functionality – at least none that are endorsed and listed on their website.
235 Carlaw Ave, Suite 501
Toronto, ON M4M 2S1