Wave Accounting vs QuickBooks: Which is Better for UK Small Businesses in 2025?

Did you know that 87% of all adult users combined in the UK are using digital-only or remote bank accounts for their small business? When the pressure to go digital increases, they try to choose the best software for their business needs.

Many small business owners wonder about Wave Accounting vs QuickBooks: which is better for UK small businesses? Wave is beginner-friendly and capable. QuickBooks is MTD-compliant and trusted by accountants. So, what’s your pick?

If you are a small business owner in the UK, choosing the wrong tool can cost you time and money. To help you make the right decision, we’ll break down everything you need to know, including:

• What is Wave accounting and QuickBooks?
• Pros and cons for UK businesses
• Feature comparison of Wave vs QuickBooks
• Pros and cons summary
• Which software is best suited for
• How Taj Accountants can help choose, switch, and set up with ease

Wave Accounting

Wave Accounting is a cloud-based bookkeeping and financial management tool. It is designed with simplicity and affordability to support freelancers, solo traders, and small businesses. Wave is an accessible financial tool for those who don’t need complex features.

Wave’s Features:

• Free for basics – The basic plan is free, so you’ll save extra money if you’re a startup or struggling to scale.
• Customisable Invoicing- You can create, send, and track professional invoices with branding and recurring options.
• Expense Tracking- For easy record keeping, it categorises your transactions.
• Basic Financial Reports– Give a cash flow summary, assessing the profit and loss statement, and income vs expenses.

According to Capterra, we’ve shortlisted the following pros and cons: 

Pros	Cons
Free for startersFaster paymentsBank-grade security	Not MTD or HRMC compliant for UK businessesDiscontinuation of the UK-specific feature

If you are a UK-based freelancer who needs simple financial software, Wave might be a budget-friendly solution. But if you are a small business owner with complex financial interactions like payroll and tax, Wave accounting won’t work well for you. 

QuickBooks

QuickBooks is one of the most widely used accounting software programs. Intuit developed this software to handle everything from invoicing and payroll to VAT compliance and tax filings. Millions of small businesses, freelancers, and accountants use this to simplify their finances.

QuickBooks offers a tailored version that meets all the requirements for HMRC-compliant bookkeeping, MTD  submissions, and small business tax filing. It is an ideal fit for UK entrepreneurs to scale with confidence.

QuickBooks Features:

• Automated Bookkeeping: Automatic transactions are made by connecting your bank, credit cards, and digital wallet, like PayPal. 
• Enhanced reporting and dashboards: Customisable reports and real-time dashboards for smarter business decisions. 
• Payroll management: Streamlined payroll services with automated tax calculations and compliance features. 
• Integrations: Connects with hundreds of third-party apps like CRM, eCommerce, etc.

According to Capterra, here are the shortlisted pros and cons of QuickBooks:

Pros	Cons
Scalable for small businesses and solopreneurs  Wide range of financial functionalities from bank reconciliation to tax managementThird-party applications, including CRM, HR and eCommerce platformsAccessibility from any deviceAutomated bank feeds	Limited usersLearning curves for new usersReporting limitations

Feature Comparison: Wave vs QuickBooks

Feature	Wave	QuickBooks
Pricing	Free	Tiered
VAT Support	No	Yes (UK complaint)
Invoicing	Yes	Yes
Payroll Integration	US only	UK support
Bank Integration	Limited	Extensive (UK bank-supported)
MTD Compliance	No	Yes

Which one should you choose in the UK?

Choosing the right accounting software depends on finding the best match for your business size, growth plans, and compliance needs. Wave and QuickBooks both offer cloud-based accounting tools. But the wave is not available for UK users. 

So, choosing QuickBooks for managing your business finances will be the best choice. QuickBooks has UK-specific features to help you stay compliant. 

How Taj Accountants can help

At Taj Accountants, we understand that accounting software is the backbone of your business finances. Whether you’re just starting, overwhelmed by spreadsheets, or stuck between Wave and QuickBooks, we are here to make your finances accessible. 

As a leading QuickBooks Certified ProAdvisor in London, we provide full support for small businesses, freelancers, and self-employed professionals. 

Here’s how we help:

QuickBooks Support and Training

At Taj Accountants, we will help you with every feature, from setting up your chart of accounts to generating HMRC-ready VAT reports.

This includes:

• QuickBooks setup according to your business type
• Traning sessions
• Customisations of invoices, reports, and dashboard views
• Guidance on how to use QuickBooks like a pro

We’ll ensure you can manage your finances confidently. 

Migration Help from Wave to QuickBooks

We make sure that switching from Wave to QuickBooks becomes seamless for you.  

Our team manages complete data migration, including:

• Exporting your records from Wave
• Importing your data into QuickBooks Online
• Matching your chart of accounts
• Setting up VAT codes, bank feeds, and automation rules

We’ll ensure your books transition smoothly without losing vital records. 

MTD and VAT filing made easy

MTD and VAT returns can feel confusing. That’s where we come in.

QuickBooks is MTD-compliant, and we’ll:

• Set up VAT profiles
• Help you understand VAT schemes
• Prepare and file your returns directly to HMRC
• Keep your digital record in shape year-round

Thus, you won’t panic at the last minute and get full compliance. 

Ongoing Bookkeeping, Tax Planning, and HMRC Compliance

You can easily handle QuickBooks, but pair it with expert guidance to take your finances to the next level. 

At Taj Accountants, we do more than software setup to provide:

• Monthly Bookkeeping using QuickBooks
• Tax return preparation and submission
• Cash flow forecasting and financial planning
• Support with payroll and CIS returns

Conclusion

Choosing between Wave Accounting vs. QuickBooks is no more overwhelming. Now you have a clear idea of why you should choose QuickBooks. QuickBooks is worth every penny for UK small business owners.

Compliance and accuracy are crucial for businesses in the UK. Small business owners choose Taj Accountants to reduce stress. If you need help switching over, contact us today.

FAQ

1. Is Wave Accounting free in the UK?

Yes. Wave is free for starters. However, its features are more suitable for North American users, and it doesn’t have UK-specific tools like VAT or MTD support.

2. Does QuickBooks support VAT in the UK?

Absolutely! QuickBooks suits UK small business owners with HMRC VAT and MTD regulations. It allows you to manage your complex finances easily.

3. Can I migrate from Wave to QuickBooks easily?

Yes. With the assistance of Taj Accountants, you can migrate your data and set up QuickBooks. 

4. What is the best accounting software for UK small businesses?

QuickBooks is one of the best choices for compliance, flexibility, and complex finance support. On the other hand, Wave can be an excellent choice for non-VAT freelancers with basic needs.

5. How can Taj Accountants help me with QuickBooks?

We offer support from setup to training, tax filings, reports, and ongoing advice. We ensure you stay compliant and confident.