Wave, started by co-founders Kirk Simpson and James Lochrie in 2010, has come a long way from its humble beginnings of a team consisting of just 8 members. The company has set itself apart by offering a range of financial tools specifically aimed at empowering small businesses. With accolades from Deloitte and a large customer base that has been growing since its launch, Wave was acquired by H&R Block in 2019. Their mission statement emphasizes providing an "all-in-one financial management solution" for small business owners. So, what makes this web-based accounting platform worth considering for your small business needs?

Features are divided into bundles with free plans available

Wave offers an interesting model where most of its basic services, such as invoicing and accounting, are available for free (yes, you read that correctly). Their free plan allows you to create customized invoices, send automated reminders, and enable various payment methods directly from your invoices. The accounting package also offers unlimited income and expense tracking, as well as unlimited partners, collaborators, or accountants. It's almost an a la carte approach, different from most accounting services where invoicing, accounting, and payroll are all bundled together with the option to upgrade to plans with premium features from any of these categories.

Invoicing and Accounting plans are free

Wave's free offerings are divided into two main categories: Invoicing and Accounting. The Invoicing package lets you create customized invoices that reflect your brand so you can add personal touches to what you send to clients. Features include customized invoices; automated reminders for late payments; options to enable Apple Pay, bank payments, and credit card directly from invoices.

Accounting plan includes unlimited members

The Accounting set, on the other hand, focuses on managing and tracking your finances. Some of its features are unlimited tracking for income and expenses; the ability to add unlimited collaborators, accountants, or partners; dashboard insights into client charges; unlimited bank and credit card connections; and access to critical reports like Overdue Invoices & Bills and Profit & Loss.

Mobile Receipts add-on for $8/month

As your business grows, you may consider exploring Wave's more advanced paid features. To start you off, the Mobile Receipts plan is available at $8/month. This paid package helps you manage your expenses effortlessly by offering unlimited receipt scanning; importing up to 10 receipts at once; cloud-based storage of all receipts; automated tracking of business spending; and streamlined tax prep with accurate books and reports.

Payroll add-on costs $40/month

Wave's Payroll plan, priced at $40/month, aims to make employee and contractor payments as smooth as possible. If you're not sure if you can make use of the Payroll plan, you can take advantage of Wave's 30-day free trial to check it out. Features include easy one-click payment deposits to employee's bank accounts; employee portal for paystubs and tax forms; quick access to essential tax forms and documents; and guaranteed accuracy for tax compliance.

Advisors plan ($149/month) includes tax support all year

Wave Advisors is a paid plan that offers personalized help and support for people who are new to accounting or want to get the most out of Wave's features. It is pretty expensive at $149 a month - other accounting services in our review cost half this amount and include a full suite of features. Wave's Advisors plan includes coaching or support from bookkeeping, accounting, and payroll experts; tailored business advice; and year-round advisor access.

Transaction fees apply to Payments plan

Lastly, Wave provides a Payments package that isn't entirely free but incurs a fee of 2.9%-3.4% plus an additional 60 cents per transaction, depending on the card used, and a 1% fee on all bank payments. The plan allows you to accept various forms of payments, with features such as flexible payment options, including bank deposit, credit card, and Apple Pay; automatic syncing of invoice payments to your accounting dashboard; fast payment processing times (1-2 business days); and recurring billing and payments setup for retainer clients.

Positive BBB rating, but poor customer reviews

Wave has earned an "A" rating from the Better Business Bureau, indicating a generally positive track record. However, user reviews are a mixed bag. While some customers find the platform excellent for basic accounting and invoicing needs, others have cited poor customer service, sudden cancellations of services, and bugs in the paid features.

Unclear and inconsistent communication from customer service

The customer reviews for Wave's accounting and invoicing platform range from highly positive to extremely negative. One of the most frequent criticisms appears to be related to customer service. Several users express frustration with slow email response times, a lack of phone support, and text support waits that can last over an hour. Even when support is available, some reviewers feel that while the staff are polite, they aren't knowledgeable enough to resolve issues. Moreover, many users have reported that their Wave Payments accounts were randomly canceled and then reinstated, causing distrust and confusion.

Concerns about functionality

Another cluster of complaints revolves around technical issues and limitations. Users mention bugs that remain unaddressed despite being reported multiple times. In one case, typing a date into a bills page led to a website crash. Several mention that the software lacks critical accounting features and reports. Connectivity issues with American Express also seem to plague the platform, forcing customers to manually import and classify these transactions, which defeats the purpose of automated financial tracking. Several users outside the U.S. and Canada also express dissatisfaction with geographical limitations on the service, which apparently redirects them to Wave's partner, Zoho Books.

Positive reviews from those who don't rely on Wave for complex tasks

However, Wave also has its advocates, particularly among freelancers and sole proprietors who need only basic small business accounting functionalities. These happy users find the platform suitable for their needs, highlighting the attractiveness of its free pricing structure and user-friendly interface. They praise the invoicing system and the expense tracking features, stating that the platform provides everything they require to effectively manage their small businesses.

Paid features aren't worth the hassle

For small business owners who are just starting out, Wave is an attractive choice thanks to its wide range of free services to help with financial management and invoicing. However, if you have plans to grow your business beyond the scope of these free features, it may be worth considering a different service - you have a few options to choose from among the services we have reviewed that not only function better but come with a much lower price tag.

On the Wave website