Wave attracts users with its free plan, but the cracks show quickly. Payroll costs extra, customer support is paywalled, and the feature set hasn’t kept pace with competitors. Freelancers and small businesses outgrow Wave and start looking for something that actually scales with them.

Wave’s free accounting tier covers the basics, but payroll starts at $20/mo plus $6 per employee, and live support requires a paid plan starting at $16/mo. The invoicing tools are functional but lack time tracking, project billing, and retainer management that service-based businesses need. Bank reconciliation works, but Wave’s reporting is limited compared to Xero or QuickBooks at similar or lower price points. There is no inventory management, no budgeting tools, and integrations are thin outside of basic accounting connections. If your business is growing or you bill clients for time and projects, Wave will hold you back.