Table of Contents
1. Introduction
2. Pricing
3. Ease of Use
4. Features and Integrations
5. Setup Process
6. Customer Support
7. Reports
8. Mobile Apps
9. Choosing Between FreshBooks and Wave
10. Conclusion
Introduction
In today's business landscape, accounting software plays a crucial role in managing finances efficiently. Two popular options in the market are FreshBooks and Wave. In this article, we will compare these two tools based on various criteria to help you make an informed decision. We'll delve into their pricing plans, ease of use, features and integrations, setup process, customer support, reports, mobile apps, and ultimately guide you in choosing the best fit for your business needs.
Pricing
When it comes to pricing, FreshBooks offers a range of plans tailored to different business sizes. Their Light plan starts at $6.80 per month, supporting up to five billable clients. The Plus plan, priced at $12 per month, accommodates up to 50 billable clients. For unlimited billable clients, the Premium plan is available at $22 per month. FreshBooks also offers a Select plan customized for specialized businesses. Currently, they have an enticing offer of 60% off for the first six months.
On the other hand, Wave promotes its free accounting and invoicing service. However, there are fees associated with receiving payments from clients. Wave's payment service fees include 2.9% plus 60 cents per transaction for credit card payments and 1% for ACH transactions. Although there are costs for payment services, they remain reasonable and comparable to other providers. Additionally, Wave's free service includes several features not found in other free accounting and invoicing tools.
Ease of Use
FreshBooks is a cloud-based accounting software designed to simplify financial management for small businesses. One of its advantages is its ease of setup. Users can input their business details, such as company name, address, and telephone number, effortlessly. This allows users to quickly get up and running, focusing on their business rather than administrative tasks.
The main page of FreshBooks includes shortcut functions that enable users to execute tasks quickly. The left menu bar contains all the core features, including banking, sales, cash flow, expenses, projects, and payroll. This intuitive layout makes it easy for users to find the features they need to manage their finances effectively. However, modifying or importing the chart of accounts in FreshBooks requires signing in as an accountant, which can be inconvenient for users switching from other accounting software.
In contrast, Wave is known for its user-friendly interface. The setup process is straightforward, and users can choose from displayed options in the Wave Launchpad to set up their account quickly. The Wave dashboard is designed to be easy to navigate, with uncluttered menu items and visible buttons. Even beginners can easily automate workflows, such as adding new clients, creating projects, estimates, and sending invoices. Wave also includes features like bank connections and receipt scanning, which save time and streamline accounting processes.
Features and Integrations
FreshBooks offers extensive integration capabilities, allowing users to connect with a wide range of third-party software. This enables automation of various business processes beyond what the platform can do on its own. Some popular integrations on FreshBooks include Shopify, Square, Bench Bookkeeping, Zapier, Canley, MailChimp, HubSpot, Gusto, Stripe, and PayPal.
Wave, on the other hand, has a smaller number of direct integrations. However, with Zapier, Wave can connect with thousands of apps, providing users with the ability to automate and streamline workflows. It's important to note that this service comes at an additional cost. Popular integrations on Wave include PayPal, Square, Stripe, Etsy, HubSpot, Slack, Google Sheets, and Pipedrive.
Setup Process
FreshBooks offers a straightforward setup process, requiring only basic information about your business. Users can customize their invoices by adding their business logo and background colors. FreshBooks also provides helpful tutorials built into the program, including tutorial videos and interactive text balloons and arrows that guide users through various functions.
Wave's setup process is equally simple. It only takes three steps to begin using the software: click the sign-up button, sign up with a Google or Yahoo account or use an email address and password, and enter your business name, type, and main currency. The business type you enter determines the categories that appear in your chart of accounts, so accuracy is crucial.
Customer Support
When it comes to customer support, FreshBooks offers more responsive assistance. They provide both email and phone support during extended business hours. Users can message support from within the app or call the toll-free phone line for immediate assistance. On the other hand, Wave's customer support is exclusively available online. Live chat support is offered for 60 days, but after that period, users are required to send emails unless they use one of the paid services, such as Wave Payments or Wave Payroll. However, Wave has an active user community at community.waveapps.com, where users can find valuable advice and assistance from fellow users and Wave staff.
Reports
FreshBooks provides 14 reports, offering a comprehensive view of your business's financial performance. However, they do not offer balance sheets. While these reports may suffice for small businesses or freelancers with a limited number of clients and services, as the business grows, the limited ways to slice and dice the reports may not provide enough visibility into where profits are coming from.
Wave offers a basic selection of 12 reports, including a profit and loss account, a balance sheet, a sales tax report, and breakdowns of the business, such as revenue by customer or product. Unfortunately, these reports cannot be customized, and there is no cash flow reporting available. This limitation may be disappointing for some users.
Mobile Apps
Wave's mobile apps are limited to entering expenses and invoices, with each function having its separate app. This can make navigation challenging, as users need to switch between apps. Additionally, the full accounts cannot be accessed from the mobile apps.
FreshBooks has made significant efforts to provide extensive functionality on their mobile app. In addition to entering expenses and invoices, it includes a time tracking feature that is highly beneficial for remote workers or those frequently traveling to client sites. The app also allows for communication with clients and provides real-time notifications for overdue invoices and payment confirmations.
Choosing Between FreshBooks and Wave
Choosing between FreshBooks and Wave depends on your business's specific needs. FreshBooks offers robust features, shortcuts on the main page, and extensive integrations. On the other hand, Wave is free, offers an intuitive setup process, and has a user-friendly dashboard. Both tools have their advantages and disadvantages, so there is no one-size-fits-all solution. We recommend trying the free version of each tool first to assess which one aligns better with your requirements.
Conclusion
In conclusion, FreshBooks and Wave are both excellent options for small business owners in need of easy-to-use accounting software. FreshBooks offers robust features, extensive integrations, and responsive support. Wave, on the other hand, provides a free accounting and invoicing service with a user-friendly interface. Ultimately, the choice between the two will depend on your business's unique needs and preferences.
