Wave vs Paylocity
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Wave
Wave is a free accounting and invoicing platform designed for small businesses, freelancers, and solopreneurs. It offers genuinely free accounting, invoicing, and receipt scanning with no subscription fee. Wave makes money through payment processing and payroll add-ons. It is one of the best free accounting tools available for very small businesses with simple needs.
Paylocity
Paylocity is a modern HR and payroll platform designed for mid-market businesses. It combines payroll processing with employee engagement tools, learning management, and workforce analytics. Paylocity stands out for its strong mobile experience and focus on building connected, engaged workplaces.
Pros
- ✓Genuinely free accounting and invoicing — no subscription required
- ✓Clean and easy to use interface
- ✓Good enough for most very small businesses and freelancers
- ✓Receipt scanning and bank connections included free
Cons
- ✗Limited features compared to paid alternatives
- ✗Customer support is minimal on the free plan
- ✗Not suitable for growing businesses with complex needs
- ✗Payroll and payment processing add-ons can add up in cost
Pros
- ✓Strong employee engagement and communication tools
- ✓Excellent mobile app for both managers and employees
- ✓Modern UI with good user adoption rates
- ✓Robust payroll with strong compliance features
Cons
- ✗Pricing requires a sales call and is not published online
- ✗Implementation can be complex for larger organizations
- ✗Some advanced features require additional modules at extra cost
Wave vs Paylocity: Side by Side
| Factor | Wave | Paylocity |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | HR Software |
| Pricing Model | Freemium | Paid |
| Starting Price | Free | Custom pricing |
| Best For | Solopreneurs and very small businesses wanting free accounting and invoicing software | Mid-market businesses with 20-1000 employees |
| Our Pick | — | — |
Wave Features
- ✓Free accounting
- ✓invoicing
- ✓receipt scanning
- ✓bank connections
- ✓financial reporting
- ✓payments processing
- ✓payroll add-on
- ✓mobile app
Paylocity Features
- ✓Payroll
- ✓benefits
- ✓talent management
- ✓workforce management
- ✓analytics
- ✓employee self-service
Pricing Comparison
Our Take
Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software. Choose Paylocity if mid-market businesses with 20-1000 employees.
Best For
Solopreneurs and very small businesses wanting free accounting and invoicing software
Best For
Mid-market businesses with 20-1000 employees
Also Consider
If neither Wave nor Paylocity 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 Wave and Paylocity?
Wave is best for solopreneurs and very small businesses wanting free accounting and invoicing software. Paylocity is best for mid-market businesses with 20-1000 employees.
Which is better, Wave or Paylocity?
Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software. Choose Paylocity if mid-market businesses with 20-1000 employees.
How much does Wave cost?
Wave starts at Free. Pricing model: Freemium.
How much does Paylocity cost?
Paylocity starts at Custom pricing. Pricing model: Paid.
Who should use Wave?
Solopreneurs and very small businesses wanting free accounting and invoicing software
Who should use Paylocity?
Mid-market businesses with 20-1000 employees