Are you looking for an accounting solution to manage your finances and invoice templates for your business? There are a myriad of software options out there, boasting diverse sets of features. They all hold great potential to help you out in handling your company finances and invoicing.
Making the right choice for your needs, however, entails getting to know which solution presents the most suitable package of functionalities. You need to start off by outlining your criteria for the financial software that you want to have. Make sure to list any specificities about your business that require a special feature. Then, it’s time to explore what the market has to offer.
To help you out in your selection of an accounting solution, we’ve devised a detailed comparison between two of the popular platforms on the market - Wave vs Xero.
Wave is positioning its solution as a financial software designed for entrepreneurs. It consists of three main products: accounting, invoicing and receipts.
At the same time, Xero is referring to its solution as accounting software for small businesses. It combines different features in one product.
Let’s take a look at the features and pricing of both platforms - and compare their powers back to back.
It’s apparent from this table with comparison of features that Wave and Xero boast a similar package of capabilities. Xero offers inventory, time tracking on projects and fixed assets management, which Wave doesn’t. However, Wave provides recurrent billing, which Xero doesn’t.
Let’s delve into the full list pros and cons of Wave vs Xero to find out more about the perks that will serve your business best.
In general, Wave offers a lightweight solution that’s relatively easy to navigate. It has instant synchronization and supports multiple currencies.
Wave provides not only income and expense tracking. It also allows you to keep a detailed overview of sales tax on all income and expense items. While this cannot substitute the role of an accountant, this feature is extremely helpful for staying on top of your due sales taxes.
The three products of Wave - accounting, invoicing and receipts - complement each other in a great way. You can use the accounting tool to handle income and expenses, generate financial statements, and connect with your bank cards and accounts. It also provides you with in-depth reports on cash flow and profit and loss, as well as of overdue bills and invoices. You can use it for a couple of businesses from the same Wave account.
With the invoicing tool, you can take care of billing your clients with ease.
While the pricing is not the only decisive factor when choosing an between Wave vs Xero, the fact that Wave products are free is just great. Wave has developed a different model for making revenue instead of the classical monthly fees. It charges its customers for payroll services and accepting online payments.
As a free tool, sometimes Wave may be a bit lagging in terms of the richness of features. It definitely would benefit its users if it adds a time tracking functionality. It would be good to get audit history as well.
Xero’s accounting software is a neat and tight solution that has numerous capabilities. It supports multiple currencies and integrates well with other workplace solutions.
This is one of the great perks of Xero. It allows you to manage your fixed assets right within the tool. You can record business assets such as vehicles, machinery, hardware and office equipment. Then you can easily make updates and handle depreciation and disposals.
Inventory management is quite a ride, and Xero helps you make the process easier. You can keep track of stock, as well as learn which are your bestselling and most profitable products and services. It also streamlines the quoting, invoicing and ordering process for your stock.
That’s undoubtedly Xero’s advantage in comparison with Wave. You can track the time spent on different tasks right within the platform, so timesheets become a thing of the past. This allows you to easily juxtapose the hours against the expenses and the payments, so that you can dynamically track the profitability of projects. The accurate build-in time tracking also helps with timely and correct invoicing.
It seems that Xero can do better in terms of its reporting features. There are some capabilities, but they are a bit limited and not as comprehensive as expected.
For a free solution, Wave offers a wide range of functionalities that will surely boost your business operations. Xero is a fair contestant, boasting more features in a tight solution.
While Wave and Xero are solid solutions for your accounting needs, Bonsai is the right choice for freelancers. It is designed with the solo professional in mind, making sure that you receive due payments from clients quickly and accurately.
Bonsai offers an unprecedented level of automatization that makes mundane tasks a breeze. It supports 180 different currencies and international payments, which makes it a solution applicable worldwide. Bonsai also provides you with freelance invoice template, retainer agreement, and online signature maker.
These features save you a ton of time and effort that you can instead invest in the truly important work for developing your professional path as a freelancer.
You can try out Bonsai today by signing up for a free trial.
A verbal contract (formally called an oral contract) refers to an agreement between two parties that's made —you guessed it— verbally.
Formal contracts, like those between an employee and an employer, are typically written down. However, some professional transactions take place based on verbally agreed terms.
Freelancers are a good example of this. Often, freelancers will take on projects having agreed on the terms and payment via the phone, or an email. Unfortunately, sometimes clients don't pull through on their agreements, and hardworking freelancers can find themselves out of pocket and wondering whether a legal battle is worth all the hassle.
The main differences between written and oral contracts are that the former is signed and documented, whereas the latter is solely attributed to verbal communication.
Verbal contracts are a bit of a gray area for most people unfamiliar with contract law —which is most of us, right?— due to the fact that there's no physical evidence to support the claims made by the implemented parties.
For any contract (written or verbal) to be binding, there are four major elements which need to be in place. The crucial elements of a contract are as follows:
Therefore, an oral agreement has legal validity if all of these elements are present. However, verbal contracts can be difficult to enforce in a court of law. In the next section, we take a look at how oral agreements hold up in court.
Most business professionals are wary of entering into contracts orally because they can difficult to enforce in the face of the law.
If an oral contract is brought in front of a court of law, there is increased risk of one party (or both!) lying about the initial terms of the agreement. This is problematic for the court, as there's no unbiased way to conclude the case; often, this will result in the case being disregarded. Moreover, it can be difficult to outline contract defects if it's not in writing.
That being said, there are plenty of situations where enforceable contracts do not need to be written or spoken, they're simply implied. For instance, when you buy milk from a store, you give something in exchange for something else and enter into an implied contract, in this case - money is exchanged for goods.
There are some types of contracts which must be in writing.
The Statute of Frauds is a legal statute which states that certain kinds of contracts must be executed in writing and signed by the parties involved. The Statute of Frauds has been adopted in almost all U.S states, and requires a written contract for the following purposes:
Typically, a court of law won't enforce an oral agreement in any of these circumstances under the statute. Instead, a written document is required to make the contract enforceable.
Contract law is generally doesn't favor contracts agreed upon verbally. A verbal agreement is difficult to prove, and can be used by those intent on committing fraud. For that reason, it's always best to put any agreements in writing and ensure all parties have fully understood and consented to signing.
Verbal agreements can be proven with actions in the absence of physical documentation. Any oral promise to provide the sale of goods or perform a service that you agreed to counts as a valid contract. So, when facing a court of law, what evidence can you provide to enforce a verbal agreement?
Unfortunately, without solid proof, it may be difficult to convince a court of the legality of an oral contract. Without witnesses to testify to the oral agreement taking place or other forms of evidence, oral contracts won't stand up in court. Instead, it becomes a matter of "he-said-she-said" - which legal professionals definitely don't have time for!
If you were to enter into a verbal contract, it's recommended to follow up with an email or a letter confirming the offer, the terms of the agreement , and payment conditions. The more you can document the elements of a contract, the better your chances of legally enforcing a oral contract.
Another option is to make a recording of the conversation where the agreement is verbalized. This can be used to support your claims in the absence of a written agreement. However, it's always best to gain the permission of the other involved parties before hitting record.
Fundamentally, most verbal agreements are legally valid as long as they meet all the requirements for a contract. However, if you were to go to court over one party not fulfilling the terms of the contract, proving that the interaction took place can be extremely taxing.
So, ultimately, the question is: written or verbal agreements?
Any good lawyer, contract law firm, or legal professional would advise you to make sure you formalize any professional agreement with a written agreement. Written contracts provide a secure testament to the conditions that were agreed and signed by the two parties involved. If it comes to it, a physical contract is much easier to eviden in legal circumstances.
Freelancers, in particular, should be aware of the extra security that digital contracts may provide. Many people choose to stick to executing contracts verbally because they're not sure how to write a contract, or they think writing out the contract terms is too complicated or requires expensive legal advice. However, this is no longer the case.
Today, we have a world of resources available at our fingertips. The internet is a treasure trove of invaluable information, platforms, and software that simplifies our lives. Creating, signing, and sending contracts has never been easier. What's more, you don't have to rely on a hiring a lawyer to explain all that legal jargon anymore.
There are plenty of tools available online for freelancers to use for guidance when drafting digital contracts. Tools like Bonsai provide a range of customizable, vetted contract templates for all kinds of freelance professionals. No matter what industry you're operating in, Bonsai has a professional template to offer.
A written contract makes the agreement much easier to prove the terms of the agreement in case something were to go awry. The two parties involved can rest assured that they're legal rights are protected, and the terms of the contract are sufficiently documented. Plus, it provides both parties with peace of mind to focus on the tasks at hand.
Bonsai's product suite for freelancers allows users to make contracts from scratch, or using professional templates, and sign them using an online signature maker.
With Bonsai, you can streamline and automate all of the boring back-office tasks that come with being a freelancer. From creating proposals that clients can't say no to, to sealing the deal with a professional contract - Bonsai will revolutionize the way you do business as a freelancer.
Why not secure your business today and sign up for a free trial?