The Howdy Glossary

Wave is an accounting platform designed for small businesses, offering features like invoicing, accounting, and receipt scanning. It includes Wave Payroll, a component that automates employee payment processes by calculating wages, withholding taxes, facilitating direct deposits, and providing tax filing reports. With user-friendly traits and functions such as online payslips and deduction handling for healthcare premiums or retirement savings plans, it aims to streamline payroll operations.

Wave was created in 2010 by Kirk Simpson and James Lochrie with the goal of providing easy-to-use accounting tools for small businesses at no cost. This vision led to the development of a comprehensive accounting platform that encompasses tasks like invoicing, receipt scanning, and payroll management through Wave Payroll. By automating complex financial processes such as tax withholdings and direct deposits while offering essential tax filing reports, Wave empowers small business owners to manage their finances without extensive knowledge or resources.

Facing competition from providers like QuickBooks Online, Xero, FreshBooks, and Zoho Books—all of which offer various accounting features tailored to small business needs—Wave differentiates itself by being a free platform with no subscription fees. This affordability makes it attractive to budget-conscious entrepreneurs who need efficient financial management solutions. The inclusion of automated payroll processing within its free offerings sets it apart further; features like wage calculations, tax withholdings handling deductions (e.g., healthcare premiums), and online payslips enhance its user-friendliness. These capabilities position Wave as an accessible yet robust choice for small businesses seeking streamlined financial operations without incurring high costs or dealing with complex software.