Xero vs Wave for small business
Wave is the pick if you want free invoicing and simple books: its Starter plan costs nothing. Xero is the pick if you want AI help and room to grow: its AI finance partner, JAX, handles routine bookkeeping, and plans start at US$27 a month.
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Side by side
| Xero | Wave | |
|---|---|---|
| Best for | AI help, accountant-friendly | Free invoicing |
| Free plan | No, free trial | Yes, Starter |
| Paid from | US$27/mo | Pro US$19/mo or US$190/yr |
| AI | JAX, its AI finance partner | No stated AI |
| Checked on | Oct 20, 2026 | Oct 20, 2026 |
Prices are each maker’s regular list price in US dollars, read on the date shown. We never convert currencies. Xero bills monthly.
Where Xero wins
- AI built in. Xero says JAX, its AI finance partner, automates routine tasks and gives you real-time insights.
- More on every plan. Every plan includes invoices and quotes, bank reconciliation, Smart Document Capture, sales tax, and W-9 and 1099 management.
- Room to grow. Growing is US$59 a month and Established is US$97, which adds project time and cost tracking.
Where Wave wins
- Free to start. The Starter plan is free, with unlimited estimates, invoices, bills, and bookkeeping records, plus invoicing from the mobile app.
- Cheap upgrade. Pro is US$19 a month or US$190 a year and adds bank imports, automatic categorizing, and unlimited receipt capture.
- No invoice cap. Xero’s Early plan limits you to 20 invoices; Wave’s free plan has no invoice limit.
The verdict
Pick Xero if you want AI to keep your books current, or your accountant already works in Xero.
Pick Wave if you mostly send invoices and want to spend as little as possible.
Questions people ask
Is Xero or Wave better for small business?
Wave is better if you want free invoicing. Xero is better if you want AI help and more features, from US$27 a month (checked October 2026).
Is Wave really free?
Yes. Wave’s Starter plan is free, with unlimited invoices and bookkeeping records. Pro is US$19 a month or US$190 a year.
Does Xero use AI?
Yes. Xero says JAX, its AI finance partner, automates routine work and gives real-time insights.
What does Xero’s cheapest plan leave out?
Early limits you to 20 invoices and 5 bills, and auto-reconcile costs US$5 a month extra.
Related pages
- Tool pages: Xero · Wave
- QuickBooks Online alternatives
- Best AI invoice generator for small business
- Wave vs QuickBooks Online in Canada
- Bookkeeping & money tools
- Visit Xero → · Visit Wave →
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