Top Accounting Software Compared: QuickBooks vs. Xero vs. Wave (2025 Edition)

Top Accounting Software Compared: QuickBooks vs. Xero vs. Wave (2025 Edition)

Is QuickBooks Still Worth It, or Should You Jump Ship?

If you are a business owner using accounting software, chances are you have felt the impact of yet another QuickBooks price increase. With monthly costs climbing and features often locked behind higher-tier plans, many business owners are asking the same question:

Is QuickBooks still the best option, or are there smarter, more affordable alternatives?

In this guide, we compare three of the most popular accounting platforms for small business owners and freelancers: QuickBooks Online, Xero, and Wave. We will walk you through pricing, features, usability, and what type of business each platform is best suited for.

Let’s dive in.

Pricing Breakdown (as of 2025)

Software	Entry Price (Per Month)	Standard Plan Features	Payroll Support	Free Version Available
QuickBooks	Starts at $30	Invoicing, reports, bank sync	Yes, separate cost	No
Xero	Starts at $15	Quotes, projects, bank rules	Yes, via Gusto	No
Wave	Free	Invoicing, receipt scanning	Yes, paid add-on	Yes

QuickBooks is now one of the most expensive accounting tools on the market, particularly if you need full functionality such as time tracking, inventory, and advanced reports. Xero offers competitive pricing with a focus on ease of use and integrations. Wave remains the go-to choice for solopreneurs and freelancers who want the essentials without the price tag.

Note: QuickBooks has increased their pricing several times over the past two years. For example, Simple Start went from $25 to $30, and Essentials jumped from $50 to $60 per month, not including add-ons. These increases often come without major feature improvements, leaving many users feeling overcharged.

Feature-by-Feature Comparison

Feature	QuickBooks Online	Xero	Wave
Invoicing	Yes, with automation and tracking	Yes, includes quotes and reminders	Yes, simple and functional
Bank Feeds & Rules	Yes, with customizable rules	Yes, intuitive and clean	Yes, but less automation
Inventory Management	Yes, in higher plans	Yes, in higher plans	No inventory support
Time Tracking	Yes, in higher plans	Yes, with third-party apps	No time tracking features
Reports & Dashboards	Strong, detailed reporting	Excellent visual reports	Basic financial reports
Integrations & Apps	Large app ecosystem	Expansive third-party ecosystem	Limited integration options
Multi-Currency Support	Available in Plus and Advanced	Included in mid and higher tiers	Not available
Mobile App	Full-featured	Well-designed and clean	Lightweight and limited
Customer Support	Mixed reviews, limited access	Email and chat, generally helpful	Email only, no live support

Ease of Use and Learning Curve

• QuickBooks Online can feel overwhelming for new users. While it is packed with features, the user interface is not always intuitive, and updates often create confusion. If you are not tech-savvy or do not have time to learn the ropes, this can be frustrating.

• Xero offers a more modern interface with cleaner navigation. Many business owners find the learning curve shorter and the experience smoother overall, especially if they prefer visual dashboards and simple workflows.

• Wave is extremely beginner-friendly. It is designed for solo business owners and freelancers who want to get in, send invoices, track income, and get out. However, its simplicity comes with limitations that can become frustrating as your business grows.

Scalability and Growth Potential

Each software has different strengths when it comes to growing with your business:

• QuickBooks can support businesses with complex needs such as multi-location tracking, inventory, and detailed reporting. However, this scalability comes with increasing costs.

• Xero balances features with affordability and scales well for service-based businesses, creatives, and agencies.

• Wave is a great starting point, but many users find they need to migrate to a more robust platform as their business and reporting needs expand.

Real-World Scenario

Let’s say you are a one-person creative studio, using QuickBooks Online Simple Start at $30 per month. You only need invoicing and basic expense tracking. After reviewing your usage, you realize you are paying for features you never use.

You switch to Wave, import your data, and set up recurring invoices in less than a day. You go from paying $360 per year to zero, without losing functionality you actually need. Now that’s a smart pivot.

🧾 Which Platform Fits Your Business Best?

QuickBooks Online is best for:

• Businesses that require complex features like inventory management, job costing, and class tracking

• Companies already integrated with QuickBooks Payroll or QuickBooks Time

• Business owners working closely with a CPA or bookkeeper who prefers QuickBooks

Xero is best for:

• Businesses that want strong reporting tools, intuitive design, and easy integration with project management apps

• Those looking for an affordable alternative to QuickBooks without sacrificing core functionality

• Companies who already use Gusto or are looking for smoother payroll collaboration

Wave is best for:

• Freelancers and side hustlers who need simple invoicing and expense tracking

• Budget-conscious entrepreneurs just getting started

• Business owners who want to do their own books without investing in expensive software

The Real Cost: What Are You Actually Paying For?

QuickBooks often advertises a low monthly price, but many features are locked behind their more expensive tiers. Add-ons like Payroll, Time Tracking, and Inventory Management can push the total cost above $100 per month.

Xero, while slightly more limited on inventory and job costing, offers a clean package of features for less than half the price of QuickBooks’ higher tiers.

Wave remains unbeatable in affordability. However, the trade-off is limited scalability and a lack of certain features like inventory, time tracking, and detailed custom reports.

The KB2 Bottom Line

QuickBooks is still a solid platform, but for many small businesses, it has priced itself out of reach. If you are not using at least 70 percent of its features, it may be time to switch.

Xero offers a middle ground with great functionality, clean design, and affordable pricing. Wave keeps things simple, and for some, that is all you really need.

If you are not sure what you need, we will help you figure it out.

Need Help Choosing or Switching?

At KB2 Bookkeeping & Tax, we work with QuickBooks, Xero, and Wave, and we offer:

• QuickBooks subscription reviews to reduce cost and eliminate unused features

• Platform comparisons based on your industry and workflow

• Full software setup and data migration

• Training for you or your staff so you can feel confident using the platform you choose

Book a free 15-minute consultation or explore our Software Setup Services at www.kb2bookkeeping.com, or email us directly at info@kb2bookkeeping.com.

❓ FAQ

Is QuickBooks better than Xero for small businesses?

QuickBooks offers more advanced features but comes at a higher cost. Xero is a better value for businesses that do not need inventory or job costing.

Is Wave accounting really free?

Yes. Wave offers free core tools like invoicing, receipt capture, and income tracking. You only pay for add-ons like payroll or payment processing.

Can I switch from QuickBooks to Xero or Wave easily?

Yes. All three platforms allow data exports and imports. At KB2, we help clients make this switch smoothly without losing important data.

What is the easiest accounting software to learn?

Wave is the easiest to learn for new business owners. Xero is slightly more advanced but still user-friendly. QuickBooks has the steepest learning curve.