Wednesday, July 16, 2014

BoxFreeIT: Wave Accounting Review – Ok for Sole Traders, Falls Short for Small Business (We Respond)

Alexey Mitko  for BoxFree IT writes: When doing an app review it is always difficult to give a general recommendation, as apps are usually developed and work great for a particular kind of client. WithWave Accounting this dilemma does not exist as the app is placed firmly in the “has a couple good ideas, not ready for daily operations” category.

Wave Accounting positions itself as a collection of accounting apps for small business. Some functionality is available on the mobile device with additional features accessible through the online portal. The mobile app can send invoices from your iPhone, along with adding new client records and products or services. The app also provides provides simple cash flow analytics and a notifications centre.
Overall, the app sports a clean and fluid look but needs a bit of testing as it did not allow me to add sales tax or choose a sales account straight after downloading it on an iPhone 5C. The app proceeded to crash when I first tried to add a product but worked without problems afterwards.
The web portal gives access to more apps and functionality and positions itself as an accounting platform with invoicing, bill tracking, Yodlee bank feeds, payroll management (US and Canada only), some reporting and a paid-for services section.
Some functions are done well. For example, CSV imports include very accessible step by step instructions, and receipts processing is a step above the digital storage seen in other accounting platforms.
However, a couple of features require a redesign and additional thought. To name a few:

1. No Credit Notes

While I could raise an invoice with a negative amount as a total, I wasn’t able to offset it against another invoice without using a clearing account. Credit notes are an essential feature in invoicing but are apparently missing from Wave.

2. No Custom Invoices

Invoices are not freely customisable, you need to adhere to one of the three templates provided. While not all businesses need invoices with a custom layout, the feature is common across cloud accounting platforms.

3. No Audit History

There is no audit history yet you are able to invite additional collaborators to your business account.

4. No bulk invoices or bills

There is no way to bulk upload invoices or bills. This can be problematic if your invoices are generated by another system or if you have a large number of invoices you need to key in.

5. Slow reconciliation

The bank reconciliation is not entirely intuitive. It relies on a tabular format and may take additional time if volume of transactions is significant.

In terms of pricing the basic version of Wave is free. The money is made on advertisements, higher than average credit card processing fees and product recommendations.
A special note to put credit card processing charges in perspective. The 2.9 percent charge that Wave asks for credit card processing compares with 2.7 percent for Stripe and 2.4 percent for PayPal. For a small business in Australia that turns over $300,000 per year a 0.2 percent difference would mean $600 per year and a 0.5 percent difference would add up to $1,500.
Wave’s functionality is sufficient for a freelancer with straightforward affairs, not a small business owner. Other cloud accounting applications offer functionality and refined user interfaces that are ahead by several years of development.
Alternative platforms are usually not free to use but would provide a scalable solution for your business and additional options when it comes to structuring your business processes.
It remains to be seen if Wave is able to catch up, but it probably has a brighter future concentrating its development efforts for businesses that do not require payroll.

(we actually took the time to comment on this review)

Comments

  1. Lance Smith says:
    Your comment is awaiting moderation. 
    >”Wave Accounting positions itself as a collection of accounting apps for small business”.
    Actually no. Wave positions itself as apps for micro-businesses, there is a tremendous difference between the micro business market and small business market. Wave clearly says on their site “Made specifically for entrepreneurs, freelancers, consultants and small businesses with 9 employees or less.”
    >higher than average credit card processing fees
    In the U.S. Stripe’s published fee is exactly the same as Wavehttps://stripe.com/us/pricing
    and Paypal if your processing under $3000 USD/mo.https://www.paypal.com/webapps/mpp/merchant-fees Again, we’re talking about the micro business market – not small business. Furthermore you should subtract the monthly subscription fee over the course of 12 months from the final calculation you present as a frame of reference. Not doing so makes your point inaccurate, which it is (inaccurate).
    >Wave’s functionality is sufficient for a freelancer with straightforward affairs, not a small business owner.
    You’re essentially saying Wave delivers on whom they say they are made for, “Made specifically for entrepreneurs, freelancers, ….”
    >Other cloud accounting applications offer functionality and refined user interfaces that are ahead by several years of development. Alternative platforms are usually not free to use but would provide a scalable solution for your business and additional options when it comes to structuring your business processes.
    Disagree with your interface comment, and a start up venture or micro-business uses tools that are efficient and meet their needs today, not tools that are designed for where they hope to be down the line, a place they may never even get to. Wave is not trying to be the tool for your business if it is fortunate enough to grow into a small business with 20 or 30 employees. There is nothing that would make Wave more happy than to see a client launch and operate their business with Wave and then grow out of Wave into Intacct or NetSuite, etc. That happening would equate to “mission accomplished”. Most all accounting apps are a fit for period of time, a phase of business cycle, etc. and not meant to be lifetime solutions for the business as it grows.
    >It remains to be seen if Wave is able to catch up, but it probably has a brighter future concentrating its development efforts for businesses that do not require payroll.
    Here in the U.S., Wave payroll is awesomehttps://www.waveapps.com/payroll/
    >the app is placed firmly in the “has a couple good ideas, not ready for daily operations” category.
    No, it’s placed in the “micro business” category which apparently is a business space you are unfamiliar with. Please visit Wikipedia,http://en.wikipedia.org/wiki/Micro-Business You’ll learn for example in the U.K. there are around 4.5 million micro enterprises (0-9 employees) which represents 95% of all UK businesses.
    Wave is not perfect but it’s also not what your review presents it to be. We serve with Wave clients and have to present work around solutions for time tracking, inventory management, CRM, business intelligence / analytics and so forth. But we do much of that for our Xero and QBO clients as well. I understand shortly Wave will be releasing their API and months later I’d imagine a rather diverse eco-system will emerge. Wave does have 2 million users out there and I understand over 1,000 new users sign up each day.
    Anyway – we like BoxFree IT here in the U.S. – all the best!
    Lance Smith
    WaveCFO.com
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