Wave Accounting Review: Free Bookkeeping Software for your online business
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When brand new online entrepreneurs come my way asking which software is best for them, I used to point them in the direction of Xero because I thought having a system that would grow infinitely with them was the best option.
But I've since changed my stance.
Now I recommend Wave for service entrepreneurs just starting out.
Wave has really come a long way over the past year. They've worked out some bugs and speed issues that used to exist.
Want to know the best part about Wave?
It's 100% free!
Hard to believe I know, but it's true!
Getting paid is made super easy with Wave. They've given you the option to add your own payment processor such as Stripe or PayPal so when you invoice a client they can pay directly through your invoice online.
Not have a payment processor? Wave's got you covered. You can sign up with them to receive credit card payments using their native feature.
Yep, they've got them too which makes this an infinitely better option than a spreadsheet. This feature can save you hours of data entry each month!
They've even built in payroll into their platform. It is a premium feature which means there will be a small fee.
I know, in one breath I praise them for this feature and in the next I call it a con. Well hear me out.
If you are completely lost when it comes to payroll and trying to go it alone (which is most business owners), this might not be the best option for you. Payroll can get messy fast and making sure the IRS gets their money isn't exactly a piece of your business you want to be playing around with.
So if you're in New York, California, Texas, and Florida (as of May 2017) they will autofile for you for an additional $10/month. If you are in one of these states, this is probably a great option for you and definitely take them up on the autofile offer. It's totally worth it!
If you're in one of the other 46 states, I would steer clear until autofiling is offered in your state. A bit more expensive, but fully automated option is Gusto.
Finding One Specific Transaction can be a HUGE Pain in the Ass
I found this one out the hard way! Oh you want to see all the payments you made the VA May? Well too bad! You can see the total you paid them, but not the individual transactions. This can be seriously annoying.
Wave is very limited at this point in time with their integrations. Compared with the bigger bookkeeping softwares that have 450+, Wave just can't compete with their 3 integrations.
However, for most businesses just starting out you don't need a fully automated bookkeeping system. So this may be a false problem for you if you don't need extras.
Confused about where to start?
Trust me I get it! Before I started a bookkeeping business I was a Virtual Assistant. I settled on Wave back then and set out to learn how to do my own bookkeeping.
I thought I was figuring it out, after hours of trying this and then trying that.
When I finally tried to look at my Income Statement I nearly cried. My income was broken up into services and sales. One problem, I was only offering services!
I started freaking out wondering if I would get in trouble with the IRS for my books being wrong.
I ended up so overwhelmed that I just quit.
So now that I know how to do bookkeeping and realize that so many other entrepreneurs just starting out are feeling the same overwhelm, I've created the
And let me tell you, this guide truly is epic! It's so big and educational, I'd advise you bookmark it so you can come back to it as you implement!