FreshBooks vs Gusto Payroll — Which One Wins?
A detailed, side-by-side comparison of FreshBooks and Gusto Payroll to help you pick the right tool for your workflow.
Quick Verdict
Gusto Payroll takes the lead with a 4.6 rating and is best for small businesses with 1-100 employees. FreshBooks (4.3) is the better pick if you need freelancers and service businesses who bill for time and want the best invoicing experience..
Side-by-Side Comparison
| Criteria | FreshBooks | Gusto Payroll |
|---|---|---|
| Rating | ★★★★ 4.3(234) | ★★★★★ 4.6(220) |
| Pricing Model | paid | subscription |
| Starter Price | $19/mo (Lite, 5 clients) | $40/mo + $6/person/mo |
| Free Tier | Yes | Yes |
| Platforms | web, ios, android | Web, iOS, Android |
| Learning Curve | easy | Easy |
| API Available | Yes | Yes |
| Best For | Freelancers and service businesses who bill for time and want the best invoicing experience. | Small businesses with 1-100 employees |
| Verdict | recommended | Best Small Business Payroll |
Feature Checklist
| Feature | FreshBooks | Gusto Payroll |
|---|---|---|
| Beautiful invoicing with online payments | — | |
| Time tracking | — | |
| Expense tracking with receipt capture | — | |
| Project management | — | |
| Proposals and estimates | — | |
| Double-entry accounting | — | |
| Payroll | — | |
| Benefits Admin | — | |
| Tax Filing | — | |
| Time Tracking | — | |
| HR Tools | — |
FreshBooks
Pros
- ✓Most beautiful invoicing experience in any accounting tool
- ✓Time tracking to invoice pipeline is seamless
- ✓More intuitive than QuickBooks for non-accountants
Cons
- ✕Per-client limitations on lower tiers are frustrating
- ✕Less feature-dense than QuickBooks for complex needs
- ✕Not suitable for inventory or manufacturing businesses
Gusto Payroll
Pros
- ✓Incredibly easy to use
- ✓Automatic tax filings
- ✓Great employee self-service portal
Cons
- ✕Gets expensive as team grows
- ✕Limited international payroll
- ✕Benefits only in US
The Bottom Line
Both FreshBooks and Gusto Payroll are solid tools in the Accounting & Finance space. Gusto Payroll edges ahead with a stronger overall rating (4.6 vs 4.3) and is the better choice for small businesses with 1-100 employees. However, if you prioritize freelancers and service businesses who bill for time and want the best invoicing experience., FreshBooks is worth serious consideration. We recommend trying the free tier or trial of each before committing.