Wave Payroll vs FreshBooks
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.
FreshBooks
FreshBooks is an accounting and invoicing platform designed specifically for freelancers, self-employed professionals, and small service-based businesses. It is known for its exceptional ease of use and beautiful invoicing tools. FreshBooks focuses on making accounting simple for non-accountants who just need to track income, expenses, and get paid quickly.
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
- ✓Easiest accounting software to learn and use — ideal for non-accountants
- ✓Beautiful, professional invoice templates
- ✓Built-in time tracking and project management
- ✓Excellent mobile app for tracking expenses on the go
Cons
- ✗Not suitable for product-based businesses needing inventory management
- ✗Limited features for complex accounting needs
- ✗More expensive than competitors for what you get on lower tiers
- ✗Payroll requires third-party integration
Wave Payroll vs FreshBooks: Side by Side
| Factor | Wave Payroll | FreshBooks |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | $20/mo + $6/person | $19/mo |
| Best For | Micro-businesses already using Wave accounting that want simple integrated payroll | Freelancers and small service businesses wanting simple, beautiful invoicing and accounting |
| Our Pick | — | — |
Wave Payroll Features
- ✓Payroll processing
- ✓direct deposit
- ✓tax payments and filings
- ✓W-2 and 1099 preparation
- ✓Wave accounting integration
- ✓employee self-service
FreshBooks Features
- ✓Invoicing
- ✓expense tracking
- ✓time tracking
- ✓project management
- ✓payments
- ✓financial reporting
- ✓bank reconciliation
- ✓mobile app
- ✓client portal
Pricing Comparison
Our Take
Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll. Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
Best For
Micro-businesses already using Wave accounting that want simple integrated payroll
Best For
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting
Also Consider
If neither Wave Payroll nor FreshBooks 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 FreshBooks?
Wave Payroll is best for micro-businesses already using wave accounting that want simple integrated payroll. FreshBooks is best for freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
Which is better, Wave Payroll or FreshBooks?
Choose Wave Payroll if micro-businesses already using wave accounting that want simple integrated payroll. Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
How much does Wave Payroll cost?
Wave Payroll starts at $20/mo + $6/person. Pricing model: Paid.
How much does FreshBooks cost?
FreshBooks starts at $19/mo. Pricing model: Paid.
Who should use Wave Payroll?
Micro-businesses already using Wave accounting that want simple integrated payroll
Who should use FreshBooks?
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting