Choosing between the two small business software can be a daunting task. Zipbooks and Wave are built in a certain way that makes it hard for anyone to settle for either of them. But don’t worry, in this article, we shall help you choose between the two by considering what you need. And most importantly, you will be enlightened on the best among the two.
In this article, we have delved into the two small business software app, comparing both the features and pricing of the two.
TL; DR – Here is a summary of the full review that will save you so much time if you are in a hurry.
Zipbooks VS Wave: Summary
There are many features available on both platforms that making settling for any of them a daunting task. Spoiler alert… Wave is the winner in this review article. Wave is rich in functionality and is all free to use. The software is also available on both Android and iOS, while its contender Zipbooks is a paid software and yet only available on iOS. There are many features to love about Wave. Read on to learn more.
Mobile Platform Support
Zipbooks is available on mobile as an app. Unfortunately, unless you have an iOS device, you will not be able to use Zipbooks on mobile. The company does not support Android as per now. To Android users, your choices are limited here.
Track Income and Expenses
What good can an accounting software serve if it cannot track all your expenses and income? Well, this is one of the vital features of accounting software. Zipbooks does not play gamble on this. The platform allows you to track your income and expenses right inside the app. You can view your Bank Payment, Bank Receipt, Bank Transfer, Cash Deposit, Cash Payment, Cash Receipt, Cash Transfer, Cash Withdrawal, Credit Note, Debit Note, etc. all inside the platform. Zipbooks make it easy to do this task by the inclusion of various ledgers and vouchers that allow you to dig deep into your financial reports.
Track Sales Taxes
In addition to tracking incomes and expenses, Zipbooks also lets you track your sales taxes. This is also one handy feature that is crucial when accounting. But for this case, Zipbooks enables you to get the job done simply. To use this feature, we assume you already know the required sales tax rate, which in most cases, is taxed differently for different products. Kindly check with your state, since some do not require sales tax.
Invoice & Accept Payments
If you have been in business for a while, you already know the importance of invoices. With Zipbooks, this accounting software helps you email invoices to your clients or customers so that they can pay their outstanding arrears or know the amount of cash they should pay for the services rendered. Another excellent addition to the invoices is the way to accept payments. Zipbooks include both, so this is a full package. A handy feature on Zipbooks is that you can view if your invoices are paid, whether wholly or partially. Alongside each invoice, Zipbooks include a status feature that you can use you tell your paid invoices and even opened invoices. There are various indicators like Gray symbolizing a “Draft,” which has not been sent, blue for a sent invoice, or an invoice that has been viewed by the receiver, orange for a partially paid invoice, and green for a fully paid invoice.
Zipbooks provides you with tools to customize your invoices the way you like. You can customize invoices simply by heading to the Invoice Preferences section. Invoices can also be reused by using the duplicate feature available on Zipbooks. If you would like to get started as fast, then use invoice templates already available on Zipbooks. There are several of them available, including templates for IT Professionals, creatives, Trade and Service, Legal invoice templates, and more. These are just the main categories. Still, there are a sheer number of templates available that are very specific to certain jobs like web development invoice, Pest Control Invoice Template, Photography Invoice Template, to name a few.
Connect Your Bank Account
To make it simple to know when your invoices are paid, Zipbooks allows you to connect your bank account to your Zipbook account. This way, Zipbook can be able to track down when payments are done and update with the needed status symbol in the invoice dashboard. The setup process is a breeze. All you need is fill in your relevant bank details and decide which accounts you’d like to pull information from. Zipbooks will then verify, and once that is done, you will be good to go. This accounting software supports several banks in both the US and Canada, so there is a chance your bank is also supported. Zipbooks has this Bank reconciliation feature that lets you tell the difference between your various personal bank records. You can also import your records into ZipBooks from a bank statement or other accounting program. On top of the Bank reconciliation feature, Zipbooks also auto-categorizes your transaction, making it easy for you to understand your financial statements. The platform uses Machine learning technology to make this happen.
Project accounting lets you track all your projects and the respective budget assigned to each of them. With this feature, you can create a new project, add the budget set aside for the project, and even add a team member that is assigned to the project. You can as well generate tasks and assign them to existing projects. Everything will be accounted for. There is also a feature to tag income and expenses. For those working with hourly pay rates, Zipbooks allows to import your time to the respective invoice. Furthermore, you can also tag almost anything, including a customer or vendor, or tag all transactions that are related to specific store locations, product lines, and more.
Zipbooks has several reporting features on accounts. First and foremost is the ‘Accounts Receivable Aging’ feature. This feature lets you track your accounts receivable history. Additionally, there is also smart feedback that will be provided on which accounts are owing within a reasonable time frame and which of them are wanting. You can view the client’s tendencies like those who pay late so that you can set up additional payment reminders in the future. This will also let you know payment trends for the future and plan for the lean-cash-flow months.
A second handy reporting feature in Zipbooks is the balance sheet. This includes your assets, liabilities, and equity, so you can be able to tell what you have, what you owe, and what you’re worth. The good thing about Zipbooks is that with automatic tracking of your financial records, you don’t need to worry about how to create a balance sheet – the platforms track all of that and creates one for you.
Another feature in Zipbook’s reporting features is the ledger. You can google about a ledger if you are not familiar with the term. But saving you a search, a ledger is a business’s set of accounts (assets, liabilities, owners’ equity, revenue, and expenses) paired with respective transaction records during a specific period. There is also an income tracking feature that you can leverage to gauge the growth of your company. It includes the money you have earned after a certain period and any expenditures incurred.
That is all about the Zipbooks Accounting software. However, Zipbooks has other features as well that we are going to look at below. But if you are more interested in the accounting aspect, that is ALL YOU NEED to know.
Business Health Score
Zipbooks analyses the various measurable data on different aspects of your account to give you a score. Two parameters are presented – hygiene and success. Hygiene revolves around keeping the financial records well, paying off your debts, among other aspects. The success factor, on the other hand, is analyzed based on two key points – sustainability and growth of your business. Zipbooks considers factors like repeat customers, timely payments, growth in sales, and recurring revenue to assess for growth. By combining hygiene and success scores, Zipbooks will present to you a general health business score.
Invoice Quality Score
Instead of just giving you templates and letting you play with them in whatever manner, Zipbooks does not stop there. It also includes an invoice quality score to help you create invoices that look professional, communicate accurately, and ensure customer satisfaction and timely payments.
We have already mentioned machine learning before, which helps in the Auto-Categorization of your transactions. On top of that, there is also a confidence score, a parameter that is based on Zipbook’s accounting expertise, and your own history.
Recommendations is another intelligent feature available on Zipbooks. Zipbook’s will recommend to you the various actionable insights, based on millions of data points. The primary intent behind these recommendations is to give your ideas that can result in significant money savings and revenue growth. The actionable insights are step by step plans that you can start using in your business. There are also general business tips and advice on specific areas of your business.
This is yet another handy feature in Zipbooks. Smart Search helps you easily navigate Zipbooks by finding what you’re looking for in a snap. With this feature, you can either search everything or individual elements, and Zipbooks will present to you the relevant results with details upfront.
Under billing, Zipbooks has a Billable expense feature that makes sure you get reimbursed for expenses you incur that your customers have to pay for. These billable expenses are added to your invoice directly. Zipbooks also has a feature of saving receipts. Once you buy something, you can create a receipt right from your phone, so you don’t forget about it. Split categories is another billing feature that lets your categories a single transaction into various categories. Zipbooks enables you to split your expenses in whatever manner you would like to. Lastly, there is vendor management. This functionality helps you keep records of your transactions with respective vendors in an organized way. With this, you will be able to keep track of payments you owe to stay current on all your bills.
Accounting Features in Wave
Wave has several accounting functionalities, as well. Here are some handy accounting features available at Wave;
Customizable Sales Taxes
Like in what you will find in Zipbooks, Wave also has sales taxes. The rates are customizable, which means you can be able to tax your customers with respect to the required percentage by law.
Bank and Credit Card Connections
You can also connect your bank account and credit cards to Wave as well. This feature is convenient when it comes to tracking your transactions and keeping track of your income. If you have several bank accounts and credit cards, you can still connect all of them since Waves gives you a chance to connect an unlimited number of cards and bank accounts. Linking bank accounts, as we have already mentioned, enables easier tracking of your income and expenses.
PayPal, Shoeboxed, and Etsy Connections
In addition to connecting bank accounts and credit cards, Waves can also be connected with other online payment platforms like PayPal, Shoeboxed, and Etsy.
Waves allow you to create invoices right from inside the app. The platform provides you with several templates to choose from, so it is easy to get started even if you are unfamiliar with invoicing. These invoice templates are customizable too. You can add your logo couple to a respective template, and you’re good to go. Customization is easy as cake; there is a drag and drop functionality supported, customizable columns, Automatic and seamless accounting integration, and more.
Another little but insightful addition to Wave invoicing is smart notifications. This feature lets you keep track of the invoices paid, invoices due, or those that have been partially paid for. You will also be notified when your invoice is viewed. For invoices that are due, Waves will provide you with an option to send a reminder hassle-free. Another excellent addition to the invoices is the way to accept payments, so your customers can pay directly using online payment platforms like PayPal.
Irrespective of your country of origin, Wave allows you to get paid in any currency. You can also set up automatic payments for recurring invoices, send statements to follow up on overdue customer accounts, send invoices using Wave, Gmail, Outlook and more, Duplicate invoices to save time when billing, and also send professional payment receipts. Invoices created by Waves can also include flexible payment terms, which is a very useful addition.
Waves allow you to accept payments in different currencies. Irrespective of the client’s location, they can pay you based on their local currency, and Waves will keep track of that. Waves also enable Automatic payment transaction reconciliation for those who use Payments by Wave.
Customizable Expense/Income Categories
Wave also lets you customize your expenses and income categories. Since you are the only one who knows what a given exactly a payment is for, Wave allows you to write it down in your language.
Bill and Invoice Reminders
Never miss any of your payments by using Wave. Late payment is one key issue in almost all businesses that involve pay after service. But by using Waves, you will be able to be reminded of your due payments and make them before time runs out. Another feature for workers is the invoice reminder. Keep track of when your invoice is due in order to remind a client that they should pay.
Exportable Accounting Reports
Waves allow you to export all your accounting recordings. This is a crucial tool for record-keeping on your business. You can export your profit/loss, sales tax, cash flow, comparative, and more.
The dashboard provides you with an overview of your account. You can view your account balance for your various connected accounts. Furthermore, you can also view your overdue invoices or general invoice status and billing, cash flow, and even profit and loss status.
Unlike in Zipbooks, where you have to enter your receipts manually, Waves has a scanning app that you can use to create receipts. Waves help you eliminate manual expense tracking with Wave’s free mobile app, which is available on both Android and iOS. Once you scan your receipts, you will be able to view them in your Waves account through their automatic sync feature.
Zipbooks VS Wave: Small Comparison Table
Who is this for?
Waves and Zipbooks are useful accounting software for any small business owner. There are many functionalities baked inside these accounting software apps that you cannot assume to embrace in your business endeavors. Take a look at the invoicing feature, accounting features, and even reporting features, and you will not find any single reason why you should not be using any of this accounting software. These accounting softwares are also applicable to many industries. So, irrespective of your industry of work, you can still use this accounting software to keep track of your business transactions from payments to expenditure.
Pros and Cons
- Rich features
- Has a free plan available
- Easy to use
- The free plan is limited in functionality
- Only available on iOS
- It is a free accounting software
- Supports both popular mobile platforms – Android and iOS
- Allows unlimited credit cards and bank accounts connected
- Lacks some functionality available in Zipbook
Zipbooks VS Wave: Pricing
As mentioned before, Zipbooks is not free software, but there is an open plan available. The free plan will get you a handful features like;
- Send unlimited invoices
- Manage unlimited vendors & customers
- Accept digital payments (Square or PayPal)
- View Basic Reports
- Connect one bank account
Paying $15 a month will get you the Smarter Plan. Under this plan you get all the features in the free plan, plus;
- Schedule recurring invoices with auto-bill
- Automate reminders
- Save invoice line items
- Connect multiple bank accounts
- Receive account notifications
- Track time
- Add five team members
For $35 a month, you will get access to a higher plan. This plan will unlock all the features in the smarter plan, plus;
- Organize books with smart tagging (by location, project, and custom)
- Customize categories (chart of accounts)
- Reconcile every account quickly
- Lock completed books
- Share documents securely
- Generate insightful reports
- Invite unlimited users
Apart from this, Wave also offers a custom pricing option. The plan is meant for users who want to add their clients in Zipbooks as well. This includes the following features;
- Text clients directly from ZipBooks
- Track time across client accounts
- Export financial packages
- Cobrand your firm on client accounts
- Edit transactions in bulk
- Manage clients from one dashboard
- Migrate existing accounting data
On the other hand, Wave is FREE. There are no hidden fees or anything. Simply sign up and get started right away.
Zipbooks VS Wave: User-Friendliness
Since user-friendliness is also an important aspect, we will not leave it out in this review. Zipbooks and Wave are all easy to use accounting software. Even for those who haven’t learned to account in their various life stages, you will not have any issues using these accounting softwares.
Wave being free software, it is fortunate that it offers support via various channels. Wave has a well-documented knowledge base center that you can use to learn about the ins and outs of the platform. At the same time, there is also a ticket system for reaching the support team, a physical address for those who wish to go and talk to them, and even social media handles. In addition to that, there is also a support forum that you can use to seek help.
For Zipbooks, we do not expect anything less, considering this is a paid software. Zipbooks has a support forum and social media pages for support. There is no email support here, and sure this is not a good move for Zipbooks.
Zipbooks and Wave are both intuitive and easy to use accounting software. But we already know you are aware of that. With the two being almost the same, it can be a hard task choosing either of them. However, we got you sorted out. In this review, Wave is out of the winner. Why is that so? Here are the reasons; Wave is a free software and has almost all the functionality available at Zipbooks baked inside. Notably, Zipbooks is the best platform for rich functionality; it has accounting features, reporting features, invoicing features, and also smart features like smart search, recommendations, and machine learning. The only problem here is that Zipbooks is very expensive. Paying for Zipbooks will cost you at least $180 a year, which is doesn’t match the price functionality ratio at Wave. However, just that Zipbooks is a paid software means it gets all the features that are not available on Wave. Wave also has features not available in Zipbooks. Zipbooks is only available on iOS, which is a bummer.