FreshBooks vs Wave for Invoicing: Which Is Better for Freelancers?
FreshBooks and Wave are two of the most popular invoicing tools for freelancers. FreshBooks is a paid, polished platform with time tracking and a client portal. Wave is free forever with unlimited invoicing. This guide compares features, pricing, and best fit.
FreshBooks and Wave both let freelancers send professional invoices, but they take very different approaches. FreshBooks is a paid platform starting at around $19 per month, with polished design, time tracking, and a dedicated client portal. Wave is free forever, with unlimited invoicing and basic accounting included at no cost. Choosing between them comes down to your budget and how much automation you need.
FreshBooks vs Wave: The Definitions
FreshBooks is a cloud-based accounting and invoicing platform built for freelancers, consultants, and small businesses. It includes time tracking, project management, expense tracking, client portals, and automated payment reminders.
Formula
Pricing starts at approximately $19/month (Lite: up to 5 clients) through to $55/month (Plus: up to 50 clients) and $85/month (Premium: unlimited clients). Annual billing reduces costs by around 10%.
Example
A freelance designer sends an invoice from FreshBooks, the client receives it via the client portal, pays online, and FreshBooks automatically marks the invoice paid and records the income in the accounts.
Wave is a free accounting and invoicing platform designed for small businesses and freelancers. It offers unlimited invoicing, expense tracking, and basic double-entry accounting at no monthly cost. Revenue comes from payment processing fees and optional paid add-ons.
Formula
Wave is free for invoicing and accounting. Payment processing fees: 2.9% + 60c for credit/debit cards, 1% for bank payments (ACH) with a minimum of $1. The paid Payroll module starts at $20/month.
Example
A freelance writer uses Wave to send invoices to all clients, track income and expenses, and run basic profit reports, all without paying any monthly subscription fee.
Key Differences
- 1FreshBooks charges a monthly fee (from ~$19/mo); Wave invoicing and accounting are permanently free
- 2FreshBooks includes time tracking and project management built in; Wave has no time tracking feature
- 3FreshBooks offers a client portal where clients can view invoices and project history; Wave does not have a dedicated portal
- 4Wave payment processing fees (2.9% + 60c) are slightly higher than some alternatives; FreshBooks also charges processing fees on top of the monthly plan
- 5FreshBooks has more polished mobile apps and better customer support response times; Wave support is limited on the free tier
When to Use FreshBooks vs Wave
Choose Wave if you are a freelancer just getting started, have a limited budget, and need clean invoicing without paying monthly fees. Choose FreshBooks if you bill by the hour, manage multiple projects, want automated client reminders, or need a more complete accounting picture as your business grows.
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Common Mistakes to Avoid
Assuming Wave is inferior because it is free: Wave handles invoicing and basic accounting competently for most freelancers and small businesses
Paying for FreshBooks Lite and hitting the 5-client cap immediately: check your expected number of active billing clients before choosing a plan
Ignoring payment processing fees on both platforms: at volume, these fees can exceed the cost of a monthly FreshBooks subscription
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Frequently Asked Questions
Is Wave really free?↓
Yes. Wave invoicing, accounting, and receipt scanning are free with no monthly fee and no client limit. Wave earns revenue from optional credit card processing fees (2.9% + 60c per transaction), bank transfer fees (1%, minimum $1), and its paid Payroll add-on. If you collect payments via bank transfer or invoice manually outside Wave, you can use the platform entirely for free.
Does FreshBooks have a free plan?↓
FreshBooks does not have a permanent free plan. It offers a 30-day free trial. After that, the cheapest plan (Lite) starts at approximately $19 per month and limits you to billing 5 clients. There is no ongoing free tier.
Can Wave handle taxes and VAT?↓
Wave provides basic bookkeeping and generates reports (profit and loss, balance sheet) that your accountant can use for tax preparation. It does not automatically calculate sales tax or VAT on invoices, but you can add tax rates manually to line items. For complex tax situations, most users still work with an accountant at year end.
Which is better for a freelancer billing by the hour?↓
FreshBooks is significantly better for hourly billing. It has a built-in timer, time tracking per project, and the ability to convert tracked time directly into invoice line items. Wave has no time tracking, so hourly freelancers would need to track time separately (in a spreadsheet or app like Toggl) and then manually enter hours on Wave invoices.