Clearbooks vs Wave Payroll
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Clearbooks
Clearbooks is a UK-focused cloud accounting software designed for small businesses and sole traders. It covers invoicing, expenses, payroll, and VAT returns in a simple and affordable package.
Wave Payroll
Wave Payroll is a simple payroll solution built into the Wave accounting ecosystem. It is designed for very small businesses that already use Wave for accounting and want an integrated payroll solution. Wave Payroll handles direct deposit, tax payments, and W-2s, making it a natural choice for businesses already in the Wave ecosystem.
Pros
- ✓Built specifically for UK accounting and VAT
- ✓Simple and easy to use
- ✓Affordable pricing
- ✓Good invoicing features
- ✓Solid MTD (Making Tax Digital) compliance
Cons
- ✗Limited outside UK market
- ✗Fewer integrations than QuickBooks or Xero
- ✗Less suitable for larger businesses
- ✗Support can be slow
Pros
- ✓Seamlessly integrates with Wave accounting — no manual data transfer needed
- ✓Very affordable pricing for micro-businesses
- ✓Simple interface with minimal setup required
- ✓Free Wave accounting included with subscription
Cons
- ✗Limited features compared to dedicated payroll platforms
- ✗Tax filing is only automatic in select states — manual filing required in others
- ✗No mobile payroll app
- ✗Not suitable for businesses with complex payroll needs
Clearbooks vs Wave Payroll: Side by Side
| Factor | Clearbooks | Wave Payroll |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | Contact for pricing | $20/mo + $6/person |
| Best For | UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance | Micro-businesses already using Wave accounting that want simple integrated payroll |
| Our Pick | — | — |
Clearbooks Features
- ✓Invoicing
- ✓bank reconciliation
- ✓expense tracking
- ✓VAT returns
- ✓payroll
- ✓financial reporting
Wave Payroll Features
- ✓Payroll processing
- ✓direct deposit
- ✓tax payments and filings
- ✓W-2 and 1099 preparation
- ✓Wave accounting integration
- ✓employee self-service
Pricing Comparison
Our Take
Choose Clearbooks if uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance. Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll.
Best For
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance
Best For
Micro-businesses already using Wave accounting that want simple integrated payroll
Also Consider
If neither Clearbooks nor Wave Payroll is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between Clearbooks and Wave Payroll?
Clearbooks is best for uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance. Wave Payroll is best for micro-businesses already using wave accounting that want simple integrated payroll.
Which is better, Clearbooks or Wave Payroll?
Choose Clearbooks if uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance. Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll.
How much does Clearbooks cost?
Visit Clearbooks website for current pricing.
How much does Wave Payroll cost?
Wave Payroll starts at $20/mo + $6/person. Pricing model: Paid.
Who should use Clearbooks?
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance
Who should use Wave Payroll?
Micro-businesses already using Wave accounting that want simple integrated payroll