Last reviewed
The short answer
Wave says it is "built for small business owners and solopreneurs at every stage—not accountants." It is a good product for that audience. Wave describes itself as "real, double-entry accounting software," its Starter plan is free, and its payroll handles direct deposit and tax filing for you (source).
A venture-backed startup tends to need things a freelancer does not: SAFEs and a cap table, a Form 1120 corporate return, the California $800 minimum franchise tax and Delaware franchise tax on the calendar, and a monthly close an investor can rely on. ClearBooks is built around those needs:
- An AI bookkeeping agent that categorizes, reconciles, drafts invoices, and proposes journal entries, with every change shown to you as a Confirm/Cancel card first.
- Open access for your own agents through an MCP server (300+ tools) and a REST API (280+ endpoints), with scoped keys.
- One ledger for startup filings and equity: Form 1120, California Form 100, payroll figures, and the SAFEs on your cap table.
Feature comparison
| ClearBooks | Wave | |
|---|---|---|
| Built for | US C-corp startups | Small business owners, freelancers, and solopreneurs |
| Core ledger | Double-entry general ledger, journal entries, trial balance | Double-entry accounting |
| Bank feeds | Plaid bank sync, plus Brex and Stripe imports and CSV | Plaid auto-import on the Pro plan; manual entry on Starter |
| Close | Statement-based reconciliation; soft and hard period locks enforced in the database | Not described on Wave's plan pages; Wave Advisors bookkeepers handle account reconciliation |
| AI and automation | AI agent with tool access to your books; every write needs your confirmation | Automatic merging and categorization of bank transactions on Pro |
| Agent and developer access | MCP server (300+ tools) and REST API (280+ endpoints) with scoped keys | Third-party integrations on Pro |
| Invoicing | Invoices, recurring invoices, estimates, credit memos; Stripe for ACH collection | Unlimited invoices and estimates on both plans; online payments from 2.9% + $0.60 per card transaction |
| Corporate tax | Form 1120 and California Form 100 prepared from the ledger, filled onto the official PDFs | Not listed on Wave's plan pages; you can add a Block Advisors tax pro as a free user |
| Cap table | SAFEs, convertible notes, priced rounds, investor data rooms (Business plan) | Not listed on Wave's plan pages |
| Payroll | In-house engine: federal plus California, Texas, Arizona; no money movement or e-file | US: $40/month base plus $6 per active employee and $6 per contractor paid; direct deposit and tax filing in all 50 states |
| Price | Free Starter plan; Pro $29/month; Business $99/month (pricing) | Starter free; Pro $19/month or $190/year, as of October 2026 (source) |
Wave's Pro price is per business, applies to new subscriptions, and has been promotionally discounted for the first months; receipt capture and payroll are paid add-ons. The payroll price shown applies to US payroll customers who signed up after April 2, 2025. Check the Wave pricing page for current terms.
Where Wave is better
- Price. Wave Starter is free with unlimited estimates, invoices, bills, and bookkeeping records, and Pro is $19/month (source). For a solo founder who mainly sends invoices, it is hard to beat.
- Payroll that moves money and files. Wave Payroll includes unlimited free direct deposits and, as part of its tax service, transfers tax payments and files with your state tax agency and the IRS in all 50 states, excluding 1099 filings (source). ClearBooks payroll calculates paychecks and prepares return figures, but it does not pay employees or e-file, and its state rules cover California, Texas, and Arizona. See payroll.
- Simplicity. Wave is designed so you "don't need to be an accountant." If you never plan to raise money, ClearBooks' period locks and equity records are more than you need.
- Done-for-you bookkeeping on the same platform. Wave Advisors assigns an in-house bookkeeper, starting at $149/month billed annually and priced on transaction volume (source). ClearBooks is software only.
- Scale and Canada. Wave says its double-entry software is trusted by over 2 million small business owners, and it serves the US and Canada. ClearBooks is US-focused and built around USD books.
Signs your startup has outgrown Wave
- You raised on SAFEs or convertible notes. ClearBooks tracks each instrument with its valuation cap, discount, status, and a link to the signed agreement, next to the ledger, and shares investor data rooms by link. Cap table management and data rooms are on the Business plan. See equity.
- You file Form 1120. ClearBooks prepares Form 1120 (with Schedules C, J, K, L, M-1, M-2) and California Form 100 from the whole year of the ledger, including adjusting journal entries, and fills the official PDFs for you or your CPA to review and file. See tax.
- Investors want a real monthly close. ClearBooks reconciles against bank statements and locks closed periods with soft and hard locks enforced by database triggers, so no import, API call, or agent can change a closed month. Reopening requires a written reason that is kept on record. See reconciliation and close.
- You want an AI agent doing the routine work. The ClearBooks agent works through the same permissioned tools as the API, and your own agents can connect through MCP.
Switching from Wave to ClearBooks
- Close your last full month or year in Wave.
- Take your chart of accounts, closing balances, and transaction history out of Wave (Wave's help center covers its export options), import transactions into ClearBooks by CSV, and enter opening balances as journal entries.
- Connect bank and card accounts through Plaid so new activity flows in, and let the agent categorize it.
- Record your SAFEs and other investments on the cap table.
- Reconcile the first month against your bank statements before you rely on the reports.
If you use Wave Payroll and want to keep it, you can: record the payroll journal entries in ClearBooks and keep paying through Wave. ClearBooks also exports journal entries in QuickBooks IIF and Xero manual-journal CSV formats, so you are not locked in. See the docs for import details.
Who should pick which
Pick Wave if you are a freelancer, consultant, or small service business, invoicing is most of your accounting, you want full-service payroll at a low monthly price, or you want the lowest cost possible.
Pick ClearBooks if you are a US C-corp startup that has raised or plans to raise, you need SAFEs and a cap table alongside the books, you want Form 1120 and California Form 100 prepared from the ledger, you need a database-enforced period close, and you want an AI agent and your own tools working in the books. Compare plans on the pricing page.
Frequently asked questions
Is ClearBooks a good Wave alternative for startups?
For US C-corp startups that have raised on SAFEs, file Form 1120, and need a reliable monthly close, yes. For freelancers and small service businesses whose accounting is mostly invoicing, Wave's free Starter plan and $19 per month Pro plan are usually the better value.
Is Wave double-entry accounting?
Yes. Wave describes its accounting as real, double-entry software. The difference with ClearBooks is not double entry itself but what is built on it for startups: database-enforced period locks, Form 1120 and California Form 100 preparation, a cap table with SAFEs, and an MCP server and REST API for AI agents.
Does ClearBooks payroll replace Wave Payroll?
Not for most companies yet. Wave Payroll pays employees by direct deposit and files and pays payroll taxes in all 50 states. ClearBooks calculates paychecks for federal plus California, Texas, and Arizona, posts them to the ledger, and prepares return figures, but it does not move money or e-file.
Can I move my books from Wave to ClearBooks?
Yes, by export and import. Take your chart of accounts, closing balances, and transaction history out of Wave, import transactions into ClearBooks by CSV, enter opening balances as journal entries, then connect your bank through Plaid and reconcile the first month.
How much does ClearBooks cost compared with Wave?
ClearBooks has a free Starter plan, Pro at $29 per month, and Business at $99 per month, which includes cap table management and data rooms. As of October 2026, Wave Starter is free and Wave Pro is $19 per month or $190 per year, with payroll and receipt capture as paid add-ons.