FreeAgent vs Wave: Which Is Better in 2026?
Wave is the better choice for cost-conscious US freelancers and small business owners Wave wins
Wave's free tier delivers unlimited invoicing, bill creation, and bookkeeping without payment barriers, making it ideal for bootstrapped businesses testing accounting software. FreeAgent's $42/month starting price and UK-only payroll and tax compliance mean it serves a different market. Choose Wave if you're US-based and want zero upfront costs; choose FreeAgent only if you operate in the UK and need native HMRC compliance.
Key Differences at a Glance
| Feature | FreeAgent | Wave |
|---|---|---|
| Budgeting & Forecasting | Yes Basic cashflow forecast native; advanced forecasting requires third-party integrations such as Float, Fathom, or Syft Analytics. | No |
| Inventory Management | Yes Basic stock tracking available on traditional/accruals basis only; not available if cash basis is selected; no reorder point management. | No |
Verdict Scores — How we score →
Feature Comparison
| Feature | FreeAgent | Wave |
|---|---|---|
| Budgeting & Forecasting | Yes Basic cashflow forecast native; advanced forecasting requires third-party integrations such as Float, Fathom, or Syft Analytics. | No |
| Inventory Management | Yes Basic stock tracking available on traditional/accruals basis only; not available if cash basis is selected; no reorder point management. | No |
| AI & Automation | Yes Smart Capture uses OCR for bill/receipt extraction and auto-categorisation; Radar feature provides AI-driven business insights and trend-spotting. | Yes Auto-merge and categorisation of bank transactions on Pro plan; OCR receipt capture via add-on; no fraud detection or AI forecasting natively. |
| Accounts Payable & Bill Management | Yes Smart Capture tool uses OCR for automatic bill/receipt data extraction; limited to 10 captures/month; unlimited requires £5/mo add-on. | Yes Unlimited bill creation on all plans; OCR receipt capture via add-on ($11/mo or $8/mo annual); no approval workflow natively. |
| Accounts Receivable & Invoicing | Yes Automated invoices and payment reminders; one-click online payment via Stripe, GoCardless, PayPal, or Tyl by NatWest; no client cap. | Yes Unlimited invoices and estimates on all plans; automated late payment reminders and online payment acceptance available on Pro; no client caps. |
| Bank Reconciliation | Yes Open Banking automatic bank feeds (Monzo, Revolut, Starling, NatWest, RBS, Ulster Bank); smart auto-categorisation of imported transactions. | Yes Auto-import of bank transactions requires Pro plan via Plaid; Starter plan is manual entry only; not all financial institutions are supported via Plaid. |
| General Ledger & Journal Entries | Yes Double-entry accounting native; traditional accruals basis or cash basis selectable at setup; cash basis omits stock and payroll. | Yes Full double-entry accounting with native general ledger; bookkeeping records are unlimited on both free and paid plans. |
| Mobile App | Yes iOS and Android app supports invoicing, expense logging, receipt capture, time tracking, and mileage recording on the go. | Yes iOS and Android app for invoicing and payments; receipt capture requires paid add-on; bank transaction management not available offline. |
| Multi-Currency & Internationalization | Yes Product is UK-focused with HMRC MTD compliance; multi-currency invoicing available but VAT/tax automation is UK-only. | Yes Primarily serves US and Canadian small businesses; multi-currency invoicing possible but no automatic VAT/GST calculation by country. |
| Payroll | Yes Native UK payroll only; auto-calculates PAYE and National Insurance and files directly to HMRC; not available for non-UK businesses. | Yes US and Canadian payroll available as paid add-on (from $25/mo on Starter, from $40/mo on Pro); not native; tax filing automated within the add-on. |
| Reporting & Financial Statements | Yes P&L, balance sheet, cashflow forecast, and tax timeline built-in; key accounting reports auto-generated and accessible at any time. | Yes P&L, balance sheet, cash flow, and expense breakdown reports included on all plans; month-over-month and year-over-year comparisons available. |
| Third-Party Integrations | Yes 70+ integrations including Stripe, GoCardless, PayPal, HubSpot, Zapier, Dext; Amazon UK add-on £6/mo; no native open API listed publicly. | Yes Limited native integrations; Zapier available for automation; Stripe, PayPal, and Etsy payments supported; no open API mentioned publicly. |
Highlighted rows indicate features where the tools differ.
Pros & Cons
Based on G2 reviews. Source: our review methodology.
FreeAgent
Wave
Pricing
FreeAgent
| Plan | Monthly | Annual |
|---|---|---|
| Free | Free | Free |
| Starter | $42/mo | $33/mo |
| Growth | $54/mo | $42/mo |
| Pro | Custom | — |
Wave
| Plan | Monthly | Annual |
|---|---|---|
| Free | Free | Free |
| Pro | $19/mo | $16/mo |
| Growth | $199/mo | $149/mo |
Ratings & Reviews
Who Should Choose Which?
You are a US-based freelancer or solo service provider with minimal accounting needs. You want unlimited invoicing and expense tracking without monthly fees. Wave's free tier includes unlimited invoices, estimates, and bill creationΓÇöperfect for getting started. The Pro plan ($19/mo) adds automatic bank feeds and transaction categorization when you're ready to scale. Mobile apps on both iOS and Android let you log expenses and capture receipts on the go, keeping your books current without desktop work.
You are a UK-based sole trader or limited company owner who needs integrated tax compliance and payroll. FreeAgent's native HMRC MTD filing, automatic PAYE/National Insurance calculation, and UK bank feed integrations (Monzo, Starling, NatWest, RBS) eliminate manual tax prep. The Starter plan ($42/mo) includes invoicing, expense tracking, and payroll for sole traders. Project tracking and time logging help you bill clients accurately, while the Smart Capture tool (with a £5/mo add-on) automates receipt data extraction via OCR.
Bottom Line
Wave is the better choice for US-based freelancers and small businesses seeking free accounting software with no mandatory subscription.
Related Comparisons
Frequently Asked Questions
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Is FreeAgent better than Wave?
No. Wave is the better choice for most small businesses and freelancers because it offers a genuinely free tier with unlimited invoices and bookkeeping records, while FreeAgent requires a $42/month minimum subscription with no free option available.
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How much does FreeAgent cost compared to Wave?
FreeAgent's Starter plan costs $42/month (originally £19/mo for sole traders), with no free tier available. Wave offers a genuinely free plan with unlimited invoices, estimates, and bookkeeping records, then charges $19/month for the Pro plan with automated bank feeds and transaction categorisation. For US-based freelancers, Wave's free tier eliminates startup costs entirely, while FreeAgent requires immediate monthly commitment regardless of usage level.
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What are the main feature differences between Wave and FreeAgent?
Wave excels in accessibility with a genuinely free tier offering unlimited invoices, bills, and bookkeeping records at no cost. FreeAgent requires a $42/month minimum but includes native UK payroll, advanced project tracking, and inventory managementΓÇöfeatures Wave lacks entirely. Wave's auto-bank reconciliation requires the $19/month Pro plan via Plaid integration, while FreeAgent includes bank feeds on all paid tiers. For US businesses, Wave's free option is unmatched; for UK freelancers needing payroll automation and project visibility, FreeAgent's paid plans deliver more specialized functionality.
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How difficult is it to switch from FreeAgent to Wave?
Switching from FreeAgent to Wave is straightforward for basic accounting data. Both platforms support standard double-entry accounting and can import CSV exports of transactions, invoices, and general ledger entries. FreeAgent's bank feeds and automated categorisation do not transfer directly, so you will need to reconnect your bank account to Wave's Plaid integration (Pro plan required). Historical invoice and expense data can be exported and imported, though you may need to manually map custom categories. The migration typically takes 2ΓÇô4 hours for small businesses with under 500 transactions. Wave's free tier means you can test the import process before committing to paid features.
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How do Wave and FreeAgent compare on integrations and customer support?
FreeAgent offers 70+ integrations including Stripe, GoCardless, PayPal, HubSpot, and Zapier, providing broader connectivity for small businesses and freelancers. Wave supports Stripe, PayPal, and Etsy natively, with Zapier available for automation, but users report frustration with limited integration options and poor customer support availability. FreeAgent users consistently praise ease of use and responsive support, while Wave users cite difficulty reaching representatives and limited communication channels as significant pain points. For integration depth and support quality, FreeAgent is the stronger choice.