Wave Payroll vs Clearbooks
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
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.
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
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
Wave Payroll vs Clearbooks: Side by Side
| Factor | Wave Payroll | Clearbooks |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | $20/mo + $6/person | Contact for pricing |
| Best For | Micro-businesses already using Wave accounting that want simple integrated payroll | UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance |
| Our Pick | — | — |
Wave Payroll Features
- ✓Payroll processing
- ✓direct deposit
- ✓tax payments and filings
- ✓W-2 and 1099 preparation
- ✓Wave accounting integration
- ✓employee self-service
Clearbooks Features
- ✓Invoicing
- ✓bank reconciliation
- ✓expense tracking
- ✓VAT returns
- ✓payroll
- ✓financial reporting
Pricing Comparison
Our Take
Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll. Choose Clearbooks if 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
Best For
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance
Also Consider
If neither Wave Payroll nor Clearbooks is the right fit, Multiplier is worth evaluating.
Multiplier
Startups and SMBs hiring internationally on a budget
From $40/contractor/mo
Frequently Asked Questions
What is the difference between Wave Payroll and Clearbooks?
Wave Payroll is best for micro-businesses already using wave accounting that want simple integrated payroll. Clearbooks is best for uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance.
Which is better, Wave Payroll or Clearbooks?
Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll. Choose Clearbooks if uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance.
How much does Wave Payroll cost?
Wave Payroll starts at $20/mo + $6/person. Pricing model: Paid.
How much does Clearbooks cost?
Visit Clearbooks website for current pricing.
Who should use Wave Payroll?
Micro-businesses already using Wave accounting that want simple integrated payroll
Who should use Clearbooks?
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance