Wave vs Xero: which fits your Australian business?
Wave's free tier is appealing and can suit a simple business. Here’s a straight-up comparison between Wave and Xero for Australian small businesses: see which delivers on GST and BAS, payroll and STP, bank feeds, integrations, and when paying for software is worth it.
Three reasons Australian businesses choose Xero over Wave
GST and BAS, payroll compliance, and bank feeds are where Australia-specific requirements matter most.
Automated GST tracking and BAS reporting
While Wave requires manual calculations, Xero tracks GST automatically, and generates ATO-ready BAS reports.*
STP-compliant payroll built in
Xero has STP payroll – with super and leave management, too. Xero saves small businesses 4 hours a month on payroll.*
App integrations and automated bank feeds
Automated feeds and reconciliation save customers around 6 hours a week, with 1000+ app integrations on top.
| Xero | Wave | |
|---|---|---|
| Subscription plan | Ignite | Starter Pro |
| Unlimited Users | Unlimited | Supported in Pro only subscription only |
| Bank connections/bank feeds | Supported in Pro only subscription only | |
| Bank reconciliation | Supported in Pro only subscription only | |
| Invoicing & quotes | Ignite limits to 20 invoices | |
| Bill management | Ignite limits to 5 bills | |
| Online payments | Optional add-on | |
| Cloud based | ||
| Works on mobile | ||
| Track GST & returns | △ | |
| Payroll | For 1 person | △ |
| Smart document capture | Supported in Pro only subscription only | |
| Basic Inventory & tracking | ||
| Manage fixed assets | ||
| Business Intelligence & Financial Insights | Basic | Basic |
| AI Agent (automate tasks and surface real-time insights) | JAX |
Note 1: (✓) indicates a strong capability, (✕) indicates a significant limitation, and (△) indicates a partial or conditional capability
Note 2: Wave is primarily designed for the US and Canadian markets. While freelancers in Australia can use Wave for basic bookkeeping and invoicing, it is not localized for Australian tax laws. For example, there is no: 1) ATO/BAS integration, 2) superannuation or local payroll, and 3) automated tax management (it requires manual management).
GST and BAS: automated, not manual
Xero tracks GST automatically on every transaction and generates ATO-compliant BAS reports. Wave doesn't offer these for Australian businesses, so GST-registered businesses on Wave need to export data manually for their accountant to prepare.
- 93% of AU customers agree Xero helps them stay compliant*
Payroll that's built for Australia
Xero's AU payroll handles STP reporting, automated super calculations, leave management, and pay runs – all included in any of Xero’s plans. Wave doesn't offer Australian payroll, so businesses with employees need a separate payroll product.
- 4 in 5 small businesses say Xero Payroll is easier than what they used before*
Bank reconciliation that runs itself
Xero connects to the Big Four Australian banks over 200 other AU financial institutions for automated feeds, suggested matches, and bulk reconciliation. Wave has fewer connections, and many of its AU users rely on manual CSV imports instead of a live feed.
- Xero customers report saving around 6 hours each week with automated bank feeds and reconciliation*
Connect every tool your business needs
Xero connects to 1000+ certified apps through the Xero App Store, including tools built for Australian businesses, like Deputy, Vend, and Shopify. Wave's doesn’t have a native app marketplace, so it has fewer integration options.
- 4 in 5 Xero customers save 6 hours monthly by eliminating manual data entry*
Plans to suit your business
Let your accountant work in Xero with you
Xero lets you give your advisors direct access to your file, with dedicated permissions and communication tools built in. Wave doesn't offer the same advisor access, so you’d need to export your data and share it manually to keep your accountant in the loop.
- 84% share of firms in the AU partner market are already on Xero
Wave or Xero: which one is right for you?
Choose Wave if you're a sole trader with under 20 invoices a month, no employees, no inventory, and simple income and expense tracking covers what you need. Choose Xero if you have employees and need payroll and STP, you're GST-registered, you carry inventory, or you work closely with an accountant.
- 93% of Australian customers agree Xero is easy to use*
FAQs on Wave vs Xero
For very simple setups, Wave's free tier can be enough. But Wave's $0 price doesn't include what it costs you elsewhere: manual GST calculation, no BAS automation, a separate payroll product if you hire staff, and time spent on manual reconciliation – not to mention your accountant’s time and fees. Xero is an all-in-one package. A single subscription includes automatic GST and BAS calculations, payroll, automated bank reconciliation, and real-time access for your advisor. So once you're GST-registered or have employees, Xero pays for itself – 90% of customers say they reduce business admin using Xero, and 92% agree it helps their business run more efficiently.
For very simple setups, Wave's free tier can be enough. But Wave's $0 price doesn't include what it costs you elsewhere: manual GST calculation, no BAS automation, a separate payroll product if you hire staff, and time spent on manual reconciliation – not to mention your accountant’s time and fees. Xero is an all-in-one package. A single subscription includes automatic GST and BAS calculations, payroll, automated bank reconciliation, and real-time access for your advisor. So once you're GST-registered or have employees, Xero pays for itself – 90% of customers say they reduce business admin using Xero, and 92% agree it helps their business run more efficiently.
Not automatically. Wave doesn't offer automated GST tracking or built-in BAS report generation for Australian businesses, so GST-registered users typically need to export their data manually for an accountant to prepare each quarter. Xero tracks GST on every transaction as it happens and generates ATO-compliant BAS reports without the manual step.
Not automatically. Wave doesn't offer automated GST tracking or built-in BAS report generation for Australian businesses, so GST-registered users typically need to export their data manually for an accountant to prepare each quarter. Xero tracks GST on every transaction as it happens and generates ATO-compliant BAS reports without the manual step.
Yes, but it’s limited. Wave's doesn't connect to many Australian banks, so many AU users end up relying on manual CSV import rather than a live feed.
Xero offers automated bank feeds from most Australian financial institutions, including the Big Four. It regularly imports transactions with a live feed, then helps update your books with suggested matches and bulk reconciliation.
Yes, but it’s limited. Wave's doesn't connect to many Australian banks, so many AU users end up relying on manual CSV import rather than a live feed.
Xero offers automated bank feeds from most Australian financial institutions, including the Big Four. It regularly imports transactions with a live feed, then helps update your books with suggested matches and bulk reconciliation.
The main gaps: Australian payroll with STP compliance, inventory management, multi-currency support (on Xero's Comprehensive and Ultimate plans), 1,000+ app integrations, direct advisor collaboration tools, and automated bank feeds with reconciliation. If your business needs any of these, Wave's free tier won't cover it.
The main gaps: Australian payroll with STP compliance, inventory management, multi-currency support (on Xero's Comprehensive and Ultimate plans), 1,000+ app integrations, direct advisor collaboration tools, and automated bank feeds with reconciliation. If your business needs any of these, Wave's free tier won't cover it.
Wave's base plan is free – but that price isn’t the whole story. Payment processing fees apply when you accept card payments, and Wave has no Australian payroll, so you'll need a separate payroll service to stay STP-compliant. This means that a small business with a few employees on Wave plus external payroll can end up paying more each month than if the business were on Xero's plan, which includes STP payroll, automated bank feeds, GST tracking, and BAS reporting.
Xero offers three plans for Australian businesses: Grow, Comprehensive, and Ultimate, each matched to a different stage of your business’s growth.
Wave's base plan is free – but that price isn't the whole story. Payment processing fees apply when you accept card payments, and Wave has no Australian payroll, so you'll need a separate payroll service to stay STP-compliant. This means that a small business with a few employees on Wave plus external payroll can end up paying more each month than if the business were on Xero's Grow plan, which includes STP payroll, automated bank feeds, GST tracking, and BAS reporting.
Xero offers three plans for Australian businesses: Grow, Comprehensive, and Ultimate, each matched to a different stage of your business's growth.
Wave's base plan is free – but that price isn’t the whole story. Payment processing fees apply when you accept card payments, and Wave has no Australian payroll, so you'll need a separate payroll service to stay STP-compliant. This means that a small business with a few employees on Wave plus external payroll can end up paying more each month than if the business were on Xero's plan, which includes STP payroll, automated bank feeds, GST tracking, and BAS reporting.
Xero offers three plans for Australian businesses: Grow, Comprehensive, and Ultimate, each matched to a different stage of your business’s growth.
Wave's base plan is free – but that price isn't the whole story. Payment processing fees apply when you accept card payments, and Wave has no Australian payroll, so you'll need a separate payroll service to stay STP-compliant. This means that a small business with a few employees on Wave plus external payroll can end up paying more each month than if the business were on Xero's Grow plan, which includes STP payroll, automated bank feeds, GST tracking, and BAS reporting.
Xero offers three plans for Australian businesses: Grow, Comprehensive, and Ultimate, each matched to a different stage of your business's growth.
Not in the same way. Wave has no built-in advisor access, so your accountant can't log in to your file directly. To share data, you export it and send it across manually, which adds delay and version-control headaches.
Xero works as an accountant collaboration platform: your accountant or bookkeeper gets their own login, dedicated permissions that you control, and a full advisor dashboard. With your approval, they can work directly in your file to review transactions, run reports, and make adjustments without waiting for you to send anything. There’s a good chance your advisor is already on Xero – 84% of accounting firms in Australia already use it.
FInd an advisor in the Xero Advisor Directory
Not in the same way. Wave has no built-in advisor access, so your accountant can't log in to your file directly. To share data, you export it and send it across manually, which adds delay and version-control headaches.
Xero works as an accountant collaboration platform: your accountant or bookkeeper gets their own login, dedicated permissions that you control, and a full advisor dashboard. With your approval, they can work directly in your file to review transactions, run reports, and make adjustments without waiting for you to send anything. There’s a good chance your advisor is already on Xero – 84% of accounting firms in Australia already use it.
FInd an advisor in the Xero Advisor Directory
It’s easier than you might think. Here’s the general process.
1. Export your data from Wave: contacts, chart of accounts, and transaction history.
2. Start a free Xero trial (no credit card required).
3. Import your contacts and chart of accounts into Xero.
4. Connect your Australian bank feeds so transactions import automatically.
5. Verify your opening balances and go live!
Around half of small businesses get set up with Xero in under 4 hours.* Xero's onboarding team offers personalised 1:1 setup help in your first 90 days, and 24/7 support is there if you get stuck.
Or if you prefer to hand it over, your accountant or bookkeeper can manage the switch from Wave to Xero for you.
It’s easier than you might think. Here’s the general process.
1. Export your data from Wave: contacts, chart of accounts, and transaction history.
2. Start a free Xero trial (no credit card required).
3. Import your contacts and chart of accounts into Xero.
4. Connect your Australian bank feeds so transactions import automatically.
5. Verify your opening balances and go live!
Around half of small businesses get set up with Xero in under 4 hours.* Xero's onboarding team offers personalised 1:1 setup help in your first 90 days, and 24/7 support is there if you get stuck.
Or if you prefer to hand it over, your accountant or bookkeeper can manage the switch from Wave to Xero for you.
Yes – a lot more. Xero's App Store features over 1000+ certified integrations across ecommerce, payments, inventory, payroll, time tracking, and CRM. Many are built for Australian businesses, like Deputy for workforce management and award interpretation. These apps sync directly with Xero, cutting out manual data entry and keeping your systems connected.
In a Xero vs Wave comparison, app integrations are a clear gap: Wave has fewer connections and no native app marketplace. Small businesses that sync automatically with Xero app integrations report a 26% average lift in productivity.*
Yes – a lot more. Xero's App Store features over 1000+ certified integrations across ecommerce, payments, inventory, payroll, time tracking, and CRM. Many are built for Australian businesses, like Deputy for workforce management and award interpretation. These apps sync directly with Xero, cutting out manual data entry and keeping your systems connected.
In a Xero vs Wave comparison, app integrations are a clear gap: Wave has fewer connections and no native app marketplace. Small businesses that sync automatically with Xero app integrations report a 26% average lift in productivity.*
It depends on your situation. Wave may be enough if you're a freelancer who sends only a few invoices each month, has no employees, isn’t registered for GST, and only needs basic income and expense tracking. For very simple setups, the free tier does the job.
But Xero is the better choice if:
- you're GST-registered and need automated BAS
- work with an accountant who needs direct access to your books
- invoice in multiple currencies
- need professional reporting
- plan to grow and take on staff.
When freelancers weigh Wave vs Xero, the deciding factor is usually where the business is heading. Xero's Ignite plan is an accessible entry point for sole traders, with invoicing, bank reconciliation, GST tracking, and accountant access included.
It depends on your situation. Wave may be enough if you're a freelancer who sends only a few invoices each month, has no employees, isn’t registered for GST, and only needs basic income and expense tracking. For very simple setups, the free tier does the job.
But Xero is the better choice if:
- you're GST-registered and need automated BAS
- work with an accountant who needs direct access to your books
- invoice in multiple currencies
- need professional reporting
- plan to grow and take on staff.
When freelancers weigh Wave vs Xero, the deciding factor is usually where the business is heading. Xero's Ignite plan is an accessible entry point for sole traders, with invoicing, bank reconciliation, GST tracking, and accountant access included.
If you're looking for the best alternative to Wave accounting in Australia, it helps to know where Wave falls short for local businesses. The most significant gaps are well established:
- no Australian payroll or STP compliance – so you need a separate service to pay staff and meet ATO obligations
- no automated GST tracking or BAS generation, so GST work is manual each quarter.
Depending on your setup, other limitations can include inventory, multi-currency, app integrations, advisor access, and reporting depth. Xero closes all these gaps, especially for growing Australian businesses with employees and GST obligations.
If you're looking for the best alternative to Wave accounting in Australia, it helps to know where Wave falls short for local businesses. The most significant gaps are well established:
- no Australian payroll or STP compliance – so you need a separate service to pay staff and meet ATO obligations
- no automated GST tracking or BAS generation, so GST work is manual each quarter.
Depending on your setup, other limitations can include inventory, multi-currency, app integrations, advisor access, and reporting depth. Xero closes all these gaps, especially for growing Australian businesses with employees and GST obligations.
Ready to make the switch?
The right time to switch is usually a specific moment: hiring your first employee, crossing the GST threshold, adding inventory, or your accountant asking for Xero access. From there it's easy: just export your Wave data, start a free trial, and import your contacts and chart of accounts.
- Customer confidence increases by 45% after a Xero onboarding call*
More comparisons and resources
See how Xero compares to other accounting software, and explore its full feature set for Australian small businesses.
QuickBooks vs Xero
How Xero compares with QuickBooks for Australian small businesses, from pricing to payroll and integrations.
Xero accounting software for small business
See all of Xero's accounting software features for Australian small businesses.
Sharper insights with Xero financial reports
Get live reports and cash flow forecasts for a clearer view than Wave's basic reporting.
Explore useful features to run your business
Xero’s online accounting software is designed to make life easier for small businesses – anywhere, any time.
