Attorney analysis of Wave's free accounting software and data practices
Wave offers genuinely free accounting software with reasonable terms, though users should understand the service is monetized through payment processing and data usage.
Wave offers genuinely free accounting, invoicing, and receipt scanning without artificial feature limits or client caps. The service is monetized through payment processing fees and payroll add-ons rather than monthly subscriptions. This model creates different trade-offs than traditional paid software.
Unlike competitors with limited "free" tiers, Wave's core accounting features are genuinely free with unlimited clients, invoices, and users. No credit card required to start.
Wave's business model relies on you using their payment processing (2.9% + $0.60 per transaction). They have incentive to encourage payment processing usage through the platform design.
Wave may use aggregated business data for marketing and product development. Individual transaction data may inform targeted offers.
Like all accounting software, Wave disclaims liability for calculation errors and data loss. Standard industry terms apply.
Unlike FreshBooks and others, Wave allows unlimited clients and invoices on the free tier without forced upgrades.
Financial data can be exported in standard formats, making it possible to migrate to other platforms if needed.
With no monthly fees, there's no lock-in or cancellation process for the core accounting features.
Understanding how Wave makes money helps you use the service wisely. They're not a charity - they have a sustainable business model that aligns reasonably well with user interests.
Wave makes money from payment processing (2.9% + $0.60) and optional payroll services ($35/month + $6/employee). If you don't need these, you can use the free features indefinitely.
If you need help understanding your rights or have disputes with accounting software providers, schedule a consultation.
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