Blog · Published Oct 27, 2026 · Last updated
QuickBooks vs Xero vs Wave: which bookkeeping app should a solo business pay for?
What each plan costs, what the free and cheapest plans leave out, and which one fits a one-person business.
If you run a business on your own, bookkeeping is the job that piles up quietly until tax season. QuickBooks Online, Xero and Wave are three common picks for fixing that, and all three are in our directory. Each one can send invoices, track bank transactions and give you a profit and loss report. The real differences are what the cheapest plan leaves out, how much you pay once an intro offer ends, and how many invoices you can send each month.
Here's the short answer to QuickBooks vs Xero vs Wave: start with Wave if you want a $0 plan with unlimited invoices and you don't mind adding bank transactions yourself. Pick QuickBooks Online if you want bookkeeping that learns how you categorize transactions and records them for you, or if your accountant already works in it. Pick Xero if you want a low price for the first six months and you send fewer than 20 invoices a month.
Key takeaways
- Wave Starter costs $0 and includes unlimited invoices, estimates, bills and bookkeeping records. Wave Pro costs $19 a month or $190 a year.
- QuickBooks Online has a free plan capped at 2 invoices a month and 1 connected bank. Simple Start lists at $38 a month.
- Xero Early lists at $27 a month, with 90% off the first 6 months for new US customers until November 2, 2026. It allows 20 invoices and 5 bills a month.
- On Wave, automatic bank import and transaction categorizing come with Pro, not the free Starter plan.
Prices and plan details as of October 27, 2026, from each vendor's own US pricing page, in US dollars, before tax. All three tools are in our bookkeeping category.
QuickBooks vs Xero vs Wave: prices side by side
| Plan level | QuickBooks Online | Xero | Wave |
|---|---|---|---|
| Free | Free: $0, 1 user, 2 invoices a month, 1 connected bank | No free plan | Starter: $0, unlimited invoices and records |
| Entry paid plan | Simple Start: $38 a month (50% off for the first 3 months) | Early: $27 a month ($2.70 a month for the first 6 months with the current offer) | Pro: $19 a month, or $190 a year |
| Next plan up | Essentials: $85 a month, 3 users | Growing: $59 a month | Bookkeeping service from $149 a month |
| Top plan | Plus $140 a month, Advanced $340 a month | Established: $97 a month | None beyond Pro |
Those are list prices billed monthly unless noted. QuickBooks says you can switch plans or cancel at any time. Xero subscriptions renew monthly until you cancel. Wave Pro is the only one of the three with a yearly price on its pricing page.
Wave: the $0 starting point for simple invoicing
WAWave Starter is the only plan here that is free with no invoice cap. Its pricing page lists unlimited estimates, invoices, bills and bookkeeping records, a mobile app for invoicing, and a dashboard for cash flow and customers. If you take card payments through Wave invoices on Starter, the fee is 2.9% + $0.60 per credit card transaction (3.4% + $0.60 for Amex).
The catch is what Starter leaves out. Automatic bank import, automatic merging and categorizing of bank transactions, unlimited receipt capture and automatic late payment reminders are all listed as Pro features. On Starter, you enter transactions by hand. Wave Pro costs $19 a month or $190 a year, and Wave says the fee is per business, not per owner. Pro also lowers the card fee to 2.9% + $0 for your first 10 card transactions each month.
Wave's receipt scanning uses OCR, which reads the receipt image and turns it into a bookkeeping record. It works from the mobile app, the desktop or email. If you'd rather hand the books off entirely, Wave's bookkeeping service with a dedicated bookkeeper starts at $149 a month.
QuickBooks Online: the most automation, at the highest price
QUQuickBooks Online
Mainstream small-business bookkeeping with AI-assisted categorization; your accountant likely knows it.
QuickBooks has a free plan now, but it's narrow. QuickBooks Free covers 1 user, tracks income and expenses, connects 1 bank account and lets you send 2 invoices a month. You can send unlimited invoices if you qualify for and turn on QuickBooks Payments. Free doesn't include accountant access.
Simple Start lists at $38 a month, with 50% off for the first 3 months at the time we checked. Intuit says QuickBooks learns how you categorize income and expenses and then matches and records transactions automatically. Simple Start also includes an AI chat (marked beta), access for 2 accountants, and phone support.
The higher plans add more AI tools. Essentials ($85 a month, 3 users) adds bulk invoicing and quarterly tax estimates. Plus ($140 a month) adds automatic reconciliation and budgeting. Most solo owners won't need Advanced ($340 a month, 25 users).
QuickBooks makes the most sense if your accountant already uses it. Ask before you pick, because moving your books later is a chore.
Xero: the cheapest first six months, with monthly caps
XEXero has no free plan, but its current offer makes it the cheapest paid option to try. New US customers get 90% off for the first 6 months, so Early costs $2.70 a month, then $27 a month. Xero says the offer runs until 11:59pm UTC on November 2, 2026, uses a promo code, and is for customers buying their first organization on xero.com.
Early includes bank reconciliation, Smart Document Capture, real-time reports, W-9 and 1099 management, sales tax and a 30-day cash flow forecast. The limits are the part to read closely. Early lets you send quotes and 20 invoices a month and enter 5 bills a month. Xero notes that invoices created by connected apps can count toward that limit. Auto-reconcile is an optional add-on on Early for $5 a month, and it's included on Growing ($59 a month) and Established ($97 a month).
Xero also offers a free Xero Coach for your first 90 days to help connect your bank and set up invoices. If you hire, Xero Payroll (powered by Gusto) is an add-on at $36 a month plus $6 per employee or contractor.
What the first year costs: an example
Here's a rough first-year cost for each entry paid plan if you started today at list price. It leaves out tax, payment fees and add-ons.
- Wave Pro: $190 on the annual plan, or $228 paying $19 monthly.
- QuickBooks Simple Start: 3 months at $19 plus 9 months at $38, which is $399.
- Xero Early: 6 months at $2.70 plus 6 months at $27, which is $178.20, if you sign up before the offer ends on November 2. After that, $324 a year at list price.
From year two, the list prices are Wave Pro $190 a year (annual plan), Xero Early $324 a year and QuickBooks Simple Start $456 a year.
Which one should a solo business pay for?
- You send a few invoices and want to spend nothing: Wave Starter. Upgrade to Pro when typing in bank transactions starts eating your evenings.
- You want the software to do the categorizing: QuickBooks Simple Start, or Wave Pro if you want automatic categorizing for less.
- Your accountant works in one of these: use that one. It saves you both time at tax time.
- You send fewer than 20 invoices a month and want a low start: Xero Early, but put a reminder in your calendar for when the six-month discount ends.
If you want to connect your bookkeeping app to the rest of your tools, our Zapier vs Make vs n8n comparison covers the automation side. If you'd like help setting up AI in your business once your books are sorted, you can ask in our community, Amplif-AI Your Business on Skool.
Before you sign up
- Count last month's invoices and bills. That tells you if the QuickBooks Free or Xero Early caps will pinch.
- Check that your bank connects. Wave uses Plaid for bank connections and says not every bank is supported.
- Note when intro pricing ends. Both the QuickBooks and Xero discounts revert to list price automatically.
- Ask your accountant which app they prefer before you import a year of transactions.
Frequently asked questions
Is Wave really free for a small business?
Yes, Wave's Starter plan costs $0 and includes unlimited invoices, estimates, bills and bookkeeping records. You pay card fees if customers pay invoices online, 2.9% + $0.60 per credit card transaction. Automatic bank import, transaction categorizing and unlimited receipt scanning need Wave Pro, which costs $19 a month or $190 a year.
Is QuickBooks Online free?
QuickBooks has a Free plan at $0 a month, but it's limited to 1 user, 1 connected bank and 2 invoices a month, unless you qualify for and turn on QuickBooks Payments. It doesn't include accountant access. The first paid plan, Simple Start, lists at $38 a month, with 50% off for the first 3 months when we checked.
Is Xero cheaper than QuickBooks?
At list price, yes. Xero Early is $27 a month and QuickBooks Simple Start is $38 a month. Xero is also offering new US customers 90% off for six months until November 2, 2026. The trade-off is that Xero Early caps you at 20 invoices and 5 bills a month.
Which bookkeeping app has the most AI features?
QuickBooks puts the most AI features on its pricing page. Simple Start learns how you categorize transactions and then records them automatically, and adds an AI chat in beta. Higher plans add automatic reconciliation and quarterly tax estimates. Wave Pro auto-categorizes bank transactions and reads receipts with OCR.
Do I still need an accountant if I use one of these apps?
Most solo owners still benefit from one at tax time. These apps keep your income, expenses and invoices organized, which makes an accountant's job faster. QuickBooks paid plans include access for 2 accountants, and Wave lets you give an accountant access. Ask your accountant which app they prefer before you start.
Keep learning
About the author
Sondra Verva runs AI Solution Vault, a free directory of AI tools for people who run a business on their own, and Amplif-AI Your Business. This comparison is based on each vendor's published US pricing pages, checked on October 27, 2026. We did not run paid accounts for it.