Started a new venture? Wondering which accounting software to use? There are definite advantages of using Wave as an accounting software. In this blog I am going to explain the advantages and disadvantages of using Wave as your accounting software.
You might argue that using excel Is a perfectly acceptable accounting solution, so why not continue? My answer would be that there are glaring disadvantages of using Excel. Excel is a tool which can help you to manage petty items like petty cash and monitoring your budget for your personal finance, or even for your business but it is not an accounting software.
- You can complete your invoicing in wave and send it directly to your customer.
- You can send customer statements and also can follow up with your customers, for your payments.
- You can send reminders to your customers who have not paid you through Wave.
- Wave is free of cost. The Perfect solution for a start-up.
- Reports generated through wave are very basic but it is sufficient for a start-up business. It generates reports like Profit and loss accounts, Balance Sheet and Cash Flow report.
- Accounts Receivable ageing and Accounts Payable ageing can also be generated through wave.
- Wave is perfect when you want to account for VAT.
- You can add your accountant to use your accounts.
Disadvantage of using Wave as accounting software.:
- The biggest disadvantage is that it is free. You must be wondering why would that be a disadvantage? It is a disadvantage because people do not trust anything which is free. They want to invest in something and only then will they feel that they are getting the best value.
- If you have inventory then Wave is probably not an ideal software for you as it does not support inventory valuation.
- You cannot link your bank account to Wave. But honestly, I would not advise you to link your bank account to something for which you are not paying for.
- If you want a month wise profitability report, Wave is not the right software for you.
- You cannot attach a copy of your receipts in Wave.
- You cannot give limited access to your employee.
- Online support in Wave is not up to the standard.
Precautions for using Wave as accounting Software:
Here are some precautions to keep in mind while using wave as your software:
- Remember to keep regular backup.
- Keep a monthly P&L, Balance Sheet by exporting it in excel and keeping it in your drive.
To conclude, if you are a start-up business Owner and want to maintain your accounts, in order to get the basic reports, then Wave is an ideal software. But if you have a big team working under you or you have inventory to manage then Wave is probably not right for you.
Need help in setting up your account in Wave? We at Beyond Numbers provide easy and affordable solution to start your accounts in wave and maintain them as well. Email us for further information: firstname.lastname@example.org