FreshBooks vs Wave for Freelancers
FreshBooks vs Wave: the paid invoicing leader vs the free alternative. Which is better for freelancers who need invoicing, expense tracking, and tax reports?
Verdict
Wave's free core plan is the right starting point for freelancers just getting started who need basic invoicing and expense tracking at zero cost. Once you're consistently billing $3,000+/month and spending time on admin, FreshBooks pays for itself through time savings. The key differentiators: FreshBooks has built-in time tracking (critical for hourly billing), client-facing proposals, and significantly better customer support. Wave has genuinely good double-entry accounting for free — impressive for a zero-cost tool. Start with Wave, upgrade to FreshBooks when your client volume justifies it.
Invoicing, Tax & Tools
Bill clients, track time, and file taxes — software built for the self-employed
Frequently Asked Questions
Is Wave accounting really free?
Wave's core features — invoicing, accounting, and expense tracking — are genuinely free with no time limit or client cap. Wave also offers a paid Pro tier ($19/mo) that adds auto bank import, receipt scanning, automated payment reminders, and invoice branding, but you never need to upgrade to use the core invoicing and bookkeeping. Wave makes money through payment processing (2.9% + $0.60 per transaction for Starter; 2.9% + $0 for first 10 transactions/month on Pro) and its paid payroll add-on.
What does FreshBooks have that Wave doesn't?
FreshBooks has built-in time tracking (essential for hourly billing), a proper client portal, project management, proposals, and better customer support (phone and chat vs email-only for Wave). FreshBooks also handles double-entry accounting more elegantly than Wave. Wave's free plan lacks time tracking entirely.
Should I start with Wave or FreshBooks?
Start with Wave if you're just getting started, have a tight budget, and primarily need to send invoices and track income. Upgrade to FreshBooks when you're consistently billing $2,000-3,000+/month, tracking billable hours, or managing multiple active clients — at that point, FreshBooks' time savings justify the monthly cost.
Can Wave handle VAT and GST?
Wave supports tax tracking and can apply tax rates to invoices, which works for VAT and GST. However, its tax reporting features are more basic than FreshBooks. For UK Self-Assessment or Making Tax Digital (MTD) compliance, FreshBooks is the more robust choice.