If you’re a freelancer, solopreneur, or micro-business owner choosing between FreshBooks and Wave, you’re really deciding between paid polish and free functionality. Both handle invoicing and basic accounting. But they serve very different users.
Here’s the comparison.
The Short Version
- Choose FreshBooks if you want the best invoicing experience, built-in time tracking, and expense management — and you’re willing to pay for it.
- Choose Wave if you want free accounting that covers the basics — invoicing, expense tracking, and bank reconciliation — and you don’t need time tracking or project management.
Pricing: Wave Wins (It’s Free)
Wave is completely free. No monthly fee, no per-user charge, no limits on invoices or clients. You only pay processing fees when you accept payments.
FreshBooks starts at $19/month (5 clients) and goes up to $55/month (unlimited clients). For a solo business with 6+ clients, you need at least the Plus plan at $33/month.
Verdict: Wave, obviously. But free isn’t everything.
Invoicing: FreshBooks Wins
FreshBooks is the best invoicing software available. Period. Professional templates, automatic payment reminders, late fee charging, and a client portal where clients view and pay invoices. Creating and sending invoices takes seconds.
Wave’s invoicing is functional — clean templates, payment collection, basic reminders. It works. But it’s not as polished, automated, or customizable as FreshBooks.
Verdict: FreshBooks for invoicing quality. Wave for invoicing that works for free.
Time Tracking: FreshBooks Wins
FreshBooks includes built-in time tracking. Start a timer, log hours, and bill clients directly from your timesheet. If you bill by the hour, FreshBooks handles the entire workflow: track time → create invoice → get paid.
Wave has no time tracking. You’d need a separate tool (Toggl, Clockify) and manually enter billable hours on invoices.
Verdict: FreshBooks, if you bill by the hour. Not relevant if you don’t.
Expense Tracking: FreshBooks Wins (Slightly)
Both handle expense tracking, but FreshBooks goes further:
- Receipt scanning with auto-categorization
- Mileage tracking
- Expense reports by project
- Billable vs. non-billable expense tagging
Wave tracks expenses and scans receipts, but without project tagging or mileage tracking.
Verdict: FreshBooks if you need detailed expense management. Wave if you just need basic tracking.
Accounting and Reporting: Wave Wins
Wave is a true double-entry accounting system. It generates:
- Profit and loss statements
- Balance sheets
- Cash flow statements
- Sales tax reports
- Custom transaction reports
FreshBooks generates basic P&L, expense, and sales reports, but it’s not a full accounting system. Your CPA will prefer Wave’s financials.
Verdict: Wave for accounting and reporting. FreshBooks for invoicing-focused businesses.
Ease of Use: Tie (Different Strengths)
FreshBooks has the more polished, guided experience. Everything is designed to be intuitive, from creating invoices to tracking time. It’s the easiest accounting software for people who hate accounting.
Wave is simpler (fewer features) but less guided. The interface is functional but not as polished. You’ll figure it out, but there are fewer hand-holds.
Verdict: FreshBooks for guided experience. Wave for straightforward simplicity.
Payment Processing: Wave Has Lower ACH Fees
| Payment Type | FreshBooks | Wave |
|---|---|---|
| Credit card | 2.9% + $0.30 | 2.9% + $0.60 |
| ACH | 1% (max $5) | 1% |
FreshBooks charges lower credit card processing fees than Wave. Wave’s 2.9% + $0.60 per transaction is significantly higher for small transactions.
For ACH, both charge 1%. FreshBooks caps it at $5 per transaction, which matters for large invoices.
Verdict: FreshBooks for credit card processing (lower fees). Wave for ACH (no cap difference at small amounts). Both are higher than dedicated processors.
The Decision Matrix
| Your Situation | Choose |
|---|---|
| You’re a freelancer billing by the hour | FreshBooks |
| Your budget is $0 | Wave |
| You send 5-10 invoices per month | Wave |
| You send 20+ invoices per month | FreshBooks |
| You need time tracking | FreshBooks |
| You need full accounting reports | Wave |
| Your CPA wants clean financials | Wave |
| You want the best invoicing experience | FreshBooks |
| You have 5 or fewer clients | FreshBooks Lite |
| You have 6+ clients | Wave (free) or FreshBooks Plus ($33/mo) |
| You need project-based billing | FreshBooks |
Our Recommendation
Start with Wave. It’s free, it handles invoicing and basic accounting, and most solo businesses don’t need more. If Wave covers your needs, save the $19-55/month.
Upgrade to FreshBooks when:
- You bill by the hour and need time tracking
- You send lots of invoices and want automatic reminders
- You need project-based billing
- You want a client portal where clients can view and pay invoices
- Wave’s invoicing feels too limited
Both are good tools. Wave is good for free. FreshBooks is the best invoicing experience available. Pick based on whether you need invoicing power (FreshBooks) or accounting completeness (Wave).
SoftDecide helps churches, nonprofits, and small organizations find the right software. Our comparisons are independently researched. We may earn a commission if you purchase through links on this page — at no extra cost to you.