FreshBooks vs QuickBooks vs Wave: which is best for a small online business?

FreshBooks, QuickBooks Online and Wave are the three names small businesses compare most often for invoicing and bookkeeping. They overlap a lot, but each one is built around a different user: Wave for the smallest businesses, FreshBooks for people who bill clients, QuickBooks for businesses that need full accounting.

How we compared: Prices and plan limits were checked on each company’s official website on November 13, 2026, for the United States. This comparison is based on published plans and documentation, not on paid hands-on testing. All three run frequent promotions, so we list regular prices. Confirm current prices before you sign up. This is general information, not accounting or tax advice.

The short answer

• Wave if you are just starting, want to send invoices and keep basic books, and do not want a monthly bill.
• FreshBooks if you invoice clients or wholesale customers regularly and want the easiest invoicing and time tracking.
• QuickBooks Online if you need full accounting, several users, or stock tracking inside your accounting software, and your accountant already works with it.

Side-by-side comparison

Regular monthly prices, before any promotion:

	Wave	FreshBooks	QuickBooks Online
Free plan	Yes (Starter)	No	A limited free plan was listed
Lowest paid plan	Pro, $19 a month	Lite, $23 a month	Simple Start, $38 a month
Middle plan	None	Plus, $43 a month	Essentials, $85 a month
Higher plan	None	Premium, $70 a month	Plus, $140 a month
Free trial	Not needed	30 days	30 days
Users included	Not stated on the pricing page	1, extra team members $11 a month each	1, 3 or 5 depending on the plan
Main limit on cheaper plans	No automatic bank import on the free plan	5 billable clients on Lite, 50 on Plus	1 user on Simple Start
Stock tracking	No	Not checked	Plus plan and above

Wave

Wave’s free Starter plan lets you create unlimited estimates, invoices, bills and bookkeeping records, and accept online payments. That is enough to run the books of a very small shop.

Pro plan: $19 a month, or $190 a year

• Automatic import of bank transactions, with automatic merging and categorising.
• Unlimited digital receipt capture.
• Automated late payment reminders.
• Lower card fees on the first ten online payments each month.

Payment fees (when a customer pays an invoice online)

• 2.9% plus $0.60 per card transaction, 3.4% plus $0.60 for American Express.
• On Pro, the $0.60 is waived for the first ten transactions each month.

Limits to know

• On the free plan you enter or upload bank transactions yourself. That is the main reason people upgrade.
• Payroll is a paid add-on.
• Prices are shown for the United States and Canada. Check that Wave is offered in your country.
• No stock tracking.

Best for: new sellers, side businesses and anyone whose bookkeeping takes less than an hour a month.

FreshBooks

FreshBooks is designed around invoicing clients. Its plans are limited by the number of billable clients, not by the number of invoices.

Plan	Regular price	Billable clients	Notable features
Lite	$23 a month	5	Estimates, recurring invoices, expense and time tracking, automatic bank import
Plus	$43 a month	50	Adds bank reconciliation, double-entry accounting reports, receipt scanning, accountant access
Premium	$70 a month	Unlimited	Adds accounts payable, project profitability, customised emails
Select	Custom quote	Unlimited	Lower payment fees, dedicated support

• Extra team members cost $11 a month each.
• Free trial: 30 days.
• Promotion seen when we checked: 80% off for the first 4 months. Promotions change often.

Limits to know

• Five billable clients on Lite is restrictive if you invoice many wholesale customers. Sales made through your store’s checkout are not client invoices, so the limit matters mainly for business-to-business sellers.
• Bank reconciliation and full accounting reports start at Plus, so Lite is closer to an invoicing tool than to complete bookkeeping.
• Payroll is a paid add-on.

Best for: sellers who send invoices to a manageable list of business customers and want polished invoices, reminders and simple time tracking.

QuickBooks Online

QuickBooks Online is the most complete of the three and the one most accountants know. It is also the most expensive.

Plan	Regular price	Users	Notable features
Simple Start	$38 a month	1	Invoicing and payments, automated bookkeeping, general reports
Essentials	$85 a month	3	Adds enhanced reports and time tracking on invoices
Plus	$140 a month	5	Adds inventory management, budgets and project profitability
Advanced	$340 a month	25	Adds custom permissions, workflow automation and batch invoicing

• Free trial: 30 days.
• Promotion seen when we checked: 50% off for the first 3 months.
• Free plan: the pricing page listed a $0 plan for one user, limited to two invoices a month and one bank connection. That is too small for an active shop, but useful to look around.

Limits to know

• Stock tracking only starts at the Plus plan, at $140 a month. If stock is your main need, dedicated inventory software or a well-built spreadsheet may cost less.
• The gap between plans is large, and adding users means moving up a plan.
• It has the most features, which also means the most to learn.

Best for: established shops with an accountant, several people working on the books, or a need to keep stock value and accounting in one system.

Which one for an online seller?

Your situation	Good starting point
New shop, consumer sales through a store checkout, simple books	Wave Starter
You want bank transactions imported automatically for a low price	Wave Pro or FreshBooks Lite
You invoice wholesale or business customers every month	FreshBooks Plus
Your accountant asks for QuickBooks	QuickBooks Simple Start
You need stock value inside your accounts, or several users	QuickBooks Plus

Two checks before you decide, whatever the tool:

1. Does it connect to your store and payment provider? Importing sales and fees automatically saves more time than any other feature. Look at each vendor’s list of integrations for your exact platform.
2. What does your accountant use? If someone else prepares your tax return, their preference can save you money every year.

What it costs over a year

Regular prices, lowest paid plan, paid monthly:

Tool	Plan	Cost over 12 months
Wave	Starter	$0
Wave	Pro	$228, or $190 billed annually
FreshBooks	Lite	$276
QuickBooks Online	Simple Start	$456

First-year cost is often lower because of promotions. Budget on the regular price, because that is what you pay from the second year.

Common questions

Is FreshBooks better than QuickBooks?

For sending invoices and following up on payments, FreshBooks is simpler. For full accounting, stock tracking and working with an accountant, QuickBooks Online does more. Neither is better for everyone.

Is Wave really free?

The Starter plan is free for invoicing and bookkeeping. Wave earns money from payment processing fees, the Pro plan and add-ons such as payroll.

Can I switch later?

Yes, but moving accounting data takes time. The easiest moment is the start of a financial year. Whatever you choose, follow a monthly bookkeeping checklist so your records are clean enough to move.

Do I need accounting software to send invoices?

No. See our guide on what to put on an invoice. Software helps once invoices, reminders and bank matching take more than an hour or two a month.

Looking beyond these three? See the best invoicing software for small business, which adds two free options.

Key takeaways

• Wave is the cheapest: free to start, $19 a month for automatic bank import.
• FreshBooks starts at $23 a month and is the easiest for client invoicing, with limits on billable clients.
• QuickBooks Online starts at $38 a month, does the most, and tracks stock only from the $140 Plus plan.
• Check store integrations and your accountant’s preference before anything else.
• Prices were checked on November 13, 2026. Confirm them before you buy.