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Wave offers free accounting software. So if price is your number one concern, it’s worth it to consider. But Wave does have some drawbacks. Reconciliation is more difficult and it’s harder to resolve reconciliation issues. It doesn’t have Multi Factor Authentication (MFA) so its security won't be as tight. It also has fewer native integrations than our recommended tools (QuickBooks and Xero), so you’ll have to rely on integration tools like Zapier. Additionally, it’s going to be harder to find a bookkeeper who is familiar with the platform as it’s less popular among professional accountants. Finally, the platform is designed for service businesses and lacks inventory management features that eCommerce businesses will want as they scale.
Wave Accounting was founded in 2009 by CEO Kirk Simpson and CTO James Lochrie. The two founders had previously worked together at another small business software company before deciding to start Wave. They saw that there was a need in the market for an easy-to-use, affordable accounting software aimed at very small businesses and entrepreneurs. After initially self-funding the company, Wave raised its first round of venture capital in 2010, allowing them to expand the features and reach of their software. Over the next few years, Wave focused on building out an intuitive, cloud-based accounting platform while offering free versions supported by advertisements. This model attracted millions of users early on. In 2014, Wave expanded into payments processing and payroll software as well. In 2019, it was acquired by tax preparation company H&R Block. Today, Wave continues to target solo entrepreneurs and freelancers, providing free accounting and payments software supported by premium upgrades and services. The company is headquartered in Toronto, Canada.
Wave pricing 💰:
Wave offers free accounting software for small businesses, including invoicing, bookkeeping, and reporting tools.
Wave attracts users with free software and then monetizes through premium upgrades for add-ons like payroll and payment processing. The pricing model is designed to be affordable for very small businesses.
Wave add-ons include:
Payroll - $20-40 (depending on which State you are in) per month base fee plus $6 per employee per month. Provides payroll processing and direct deposit.
Payment processing - 2.9% + 60¢ per transaction. Lets you accept credit card payments directly in Wave.
Receipts by Wave - $8 per month. Capture and organize receipts and expenses.
Advisors - $149 per month. Bookkeeping support from in-house staff.
Wave is an accounting software designed for small and medium size businesses.
Why is Wave better than Excel?
Wave has some advantages over excel:
Pre-built integrations with banks and credit card companies that you would have to import manually in Excel.
More checks to prevent you from accidentally making a mistake in your books.
Pre-built reporting tools to make sense of your financial data.
Wave is okay to launch your eCommerce business, but we recommend switching to a proper accounting tool once your business scales beyond around $100k in annual revenue.
Is Wave good for eCommerce?
It won't be ideal for eCommerce. It doesn't have inventory tracking and won't have other features necessary if you've scaled above $100k in annual revenue. It has fewer plug-ins than our recommended accounting software and will not scale with your business like QuickBooks or Xero will.
Does Wave work with Shopify?
No, you will have to use Zapier or a third-party app to sync with Shopify or manually import Shopify data.
Is Wave PCI compliant?
Yes, Wave is a PCI-DSS Level 1 Service Provider.
Is Wave ISO 27001 certified?
No, Wave is not formally ISO 27001 certified.
Is Wave SOC 2 compliant?
No, Wave has not completed a SOC 2 certification.
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