Most freelancers discover Wave the same way: they search for free accounting software, find it near the top of every list, and sign up within minutes. It works well enough in the beginning. Invoices go out, expenses get logged, and the bank feed connects without much friction.
Then the business grows.
A client asks for a detailed project breakdown on an invoice. A tax appointment comes up and the accountant asks for a profit-and-loss statement by category. A second revenue stream starts and tracking it separately becomes necessary. Suddenly, the tool that felt like a clean solution starts to feel like a workaround.
This is not a failure on Wave’s part. It was built for simplicity, and it delivers simplicity well. The problem is that freelancing rarely stays simple.
Why Your Accounting Software Choice Affects More Than Bookkeeping
The tool you use shapes how quickly you get paid, how accurately you estimate taxes, and how confidently you make business decisions.
If your software makes it easy to send professional invoices, set automatic reminders, and accept online payments, you get paid faster. If those features require manual effort, delays compound quietly.
Without clear income categorization and expense tracking, it becomes easy to underestimate taxes. And if you cannot open your dashboard and immediately understand income, outstanding invoices, and expenses, you are operating with incomplete information.
What Wave Actually Offers (And Where It Falls Short)
Wave includes free income and expense tracking, invoicing, bank reconciliation, and basic financial reporting. For freelancers billing one or two clients monthly with simple finances, it covers essentials.
Reporting Limitations
Wave provides profit and loss, balance sheet, and cash flow reports, but customization is limited. Filtering by service type or project category is restricted.
Invoice Automation
Recurring invoices and reminders exist but are basic compared to platforms designed specifically for service businesses.
Payment Processing Costs
Core accounting is free, but online payment processing carries fees. Payroll is a paid add-on.
Accountant Collaboration
Accountant access and collaboration features are more limited than advanced platforms, which can create friction during tax preparation.
No Inventory Tracking
If you sell physical products alongside services, Wave does not support inventory management.
The Alternatives Worth Considering
QuickBooks Online
Strong reporting depth with customizable income and expense reports. Well-known by accountants and scalable for growing freelancers. Higher cost and learning curve.
FreshBooks
Built for service businesses. Excellent invoicing tools, time tracking, client portals, and solid expense tracking. Subscription pricing varies by client volume.
Google Sheets
Suitable only for early-stage freelancers. Fully manual with no automation or bank feeds. Works temporarily but does not scale.
A Real-World Example: Monthly Accounting for a Freelance Designer
A freelance designer earns $6,500 per month across four clients.
- Software subscriptions: $180
- Home office allocation: $200
- Professional development: $80
- Supplies: $60
Total expenses: $520.
Net income before tax: $5,980.
Estimated tax at 25–30%: $1,495–$1,794.
Without structured reporting, the designer may treat visible bank balance as available income, underestimating tax obligations. Proper accounting software makes this calculation automatic and visible.
Who Should Use What
Use Wave if you are early-stage with simple finances and limited clients.
Use FreshBooks if invoicing, time tracking, and client experience are primary needs.
Use QuickBooks if income is growing, reporting depth matters, or you collaborate with an accountant.
Use Google Sheets temporarily if revenue is very low and you are testing freelancing before investing in software.
Common Mistakes Freelancers Make With Accounting Software
- Choosing based on price alone.
- Delaying upgrades too long.
- Not separating business banking.
- Ignoring financial reports.
- Using software built for product businesses.
Comparison at a Glance
| Feature | Wave | FreshBooks | QuickBooks Online |
|---|---|---|---|
| Base Cost | Free | From ~$17/month | From ~$30/month |
| Invoicing | Basic | Excellent | Strong |
| Time Tracking | No | Yes | Yes |
| Reporting Depth | Limited | Moderate | Advanced |
| Bank Feeds | Yes | Yes | Yes |
| Accountant Access | Limited | Moderate | Strong |
| Best For | Early-stage freelancers | Service businesses | Growing freelancers |
Frequently Asked Questions
Is Wave still free?
Yes, core accounting features are free, but payment processing and payroll have additional fees.
When should freelancers switch from Wave?
When income exceeds $3,000–$4,000 monthly consistently, reporting feels restrictive, or an accountant requires deeper collaboration.
Is FreshBooks worth it?
For freelancers who invoice frequently or track billable hours, it typically pays for itself in time saved.
Can Google Sheets replace accounting software?
Only temporarily. It lacks automation, reporting depth, and integration.
Where to Go From Here
The decision is not about the best software in theory. It is about choosing a system that matches your current complexity and supports where your freelance business is headed.
If you are working around your accounting tool rather than with it, that friction is a signal. Improving one part of your accounting workflow can significantly improve clarity, cash flow confidence, and tax preparedness.
