Gusto vs QuickBooks: Which Accounting & Payroll Software is Better?

Managing payroll and finances is one of the most important yet time-consuming tasks for any small business owner.

Thus, finding the proper accounting and payroll software to help streamline your business processes and save you valuable time is worth it. However, with so many options on the market, it can take time to determine which solution best fits your unique business needs. 

As two of the most popular all-in-one platforms, Gusto and QuickBooks are top contenders for many entrepreneurs. Both provide robust features for tracking finances, running payroll, and more. However, they also have some essential differences that are worth exploring.

In this in-depth guide and review, I will break down Gusto vs QuickBooks accounting and payroll programs’ various offerings, capabilities, and pricing. By the end, you’ll have a clear idea of which is the best choice to support your growing business operations.

Brief Overview: Gusto vs QuickBooks

First, I’ll give you a quick overview of Gusto and QuickBooks:

Gusto

Gusto primarily offers a comprehensive, user-friendly payroll service for small to medium-sized businesses. It automates payroll processes, tax filings, and HR tasks, making it easier for business owners to manage their workforce efficiently.

Key Selling Points:

• Easy to use, even if you’re new to payroll
• Full-service payroll with automatic tax calculations and filings
• Excellent employee benefits (health savings accounts, insurance, retirement plans, etc.)
• Offers integrated HR tools to manage your team effectively

QuickBooks

QuickBooks is renowned for its robust accounting features tailored to small businesses. It streamlines financial management with easy-to-use tools for invoicing, expense tracking, and inventory management, as well as unlimited payroll runs.

Key Selling Points:

• Comprehensive accounting features with real-time financial insights
• Customizable invoices and automatic payment reminders
• Seamless integration with numerous apps and business services
• Efficient expense tracking and receipt scanning via mobile app
• Payroll add-on with tax penalty protection and same-day direct deposit options

Quick Verdict: Gusto vs QuickBooks

With intuitive and user-friendly interfaces, Gusto allows businesses to streamline their payroll operations and focus on what they do best – running their business. Providing a range of features, from automatic tax calculations to employee benefits management, Gusto has quickly become a top choice for companies of all sizes.

With Gusto, payroll doesn’t have to be an overwhelming and time-consuming task. Instead, it becomes a straightforward and effortless process, leaving employers with more time to focus on their company’s growth and success.

With QuickBooks, everything from payroll and invoicing to inventory tracking and budgeting can be handled easily. What sets this particular software apart from its competitors is the exceptional user experience, automation features, and real-time insights it provides. 

QuickBooks is the perfect solution for small business owners who are looking for a reliable and versatile platform to streamline their financial operations and grow their business.

Product Overview: Gusto vs QuickBooks

What is it?

Gusto is a comprehensive payroll, benefits, and human resource management platform designed to simplify and intuitively manage complex processes for small—to medium-sized businesses. It streamlines payroll, tax filing, and HR tasks, offering a seamless employee management experience.

QuickBooks is robust accounting software that helps small—and medium-sized businesses easily manage their finances. QuickBooks covers every aspect of financial management, from invoicing and expense tracking to generating insightful financial reports, making it a staple for business owners looking to optimize their operations.

Who is it for?

Gusto is for business owners who need an all-encompassing solution for payroll, benefits administration, and HR management. It is tailored for those who want to automate payroll, provide employee benefits, and ensure compliance without hassle.

QuickBooks is for those who require a powerful tool to handle all financial aspects of their business. Whether you’re managing invoices, tracking expenses, or preparing for tax season, QuickBooks is designed to support businesses in their financial management endeavors.

What makes it special?

Gusto stands out for its user-friendly design and comprehensive service offerings. Automating the most complex aspects of payroll and HR allows you to focus more on growing your business and less on administrative tasks. Its seamless integration of benefits management into the payroll process makes it a unique and valuable tool for any business.

QuickBooks shines with its in-depth financial tracking and reporting capabilities. Its special sauce is the ability to give you a 360-degree view of your business’s financial health, enabling informed decision-making. The software’s extensive customization and integration options make it indispensable for those looking to have a firm grip on their finances.

What does it do?

Gusto automates payroll processing, calculates and files local payroll taxes, and manages employee benefits, all from a single platform. With features like direct deposit, automated tax filings, and an easy-to-use dashboard, it simplifies the entire HR and payroll process for businesses.

QuickBooks offers a comprehensive suite of financial management tools. These tools allow you to create and manage invoices, track sales and expenses, and gain valuable insights through financial reports and analyses. They also simplify accounting tasks, making it easier for you to manage your business’s finances efficiently.

Quick Comparison: Gusto vs QuickBooks

Key Features	Gusto	QuickBooks
#1) Pricing		Winner
#2) Free Trial		Winner
#3) Design & Functionality	Tie	Tie
#4) Accounting		Winner
#5) Bookkeeping		Winner
#6) Payroll Services	Winner
#7) Employee Benefits	Winner
#8) Time Tracking		Winner
#9) Payments & Banking		Winner
#10) Human Resources	Winner
#11) Customer Support Team	Winner
Overall	Payroll & HR	Accounting & Bookkeeping

Feature Comparison: Gusto vs QuickBooks

Let’s compare the features of these accounting and payroll software so you can make the right decision for your business.

#1) Pricing

Gusto introduces its pricing with the Simple Plan, which offers a streamlined set of automatic payroll features and benefits integrations. This plan is $40 per month plus $6 per month for each person you add. It’s designed to simplify payroll processes for small and medium-sized businesses by offering straightforward, comprehensive services.

On the other hand, QuickBooks’s pricing starts at $30 for the Simple Start Plan, which includes live-assist bookkeeping. This makes it a tempting choice for those looking for both accounting and payroll solutions bundled with the convenience of live support, especially for small businesses or freelancers who need an extra hand in managing their finances.

When comparing both their premium and elite plans, it’s clear that QuickBooks payroll premium and other features offer a slightly more affordable entry point for its services, especially for those who are just starting or have very few employees. However, if you focus heavily on payroll and anticipate scaling up quickly, Gusto’s per-person model offers more flexibility and scalability.

Verdict: For pricing, QuickBooks edges out slightly due to its lower starting price and the inclusion of live bookkeeping assistance, making it a more appealing option for those on a tighter budget or those who value direct support.

#2) Free Trial

Gusto is a formidable competitor in the payroll and benefits administration market, but its main payroll products—the Simple, Plus, and Premium plans—do not come with a free plan. It also lacks the free trial period that many of its rivals provide, which can be a drawback if you want to explore the possibilities before making a cash commitment. A solution is available, though, with the Gusto Contractor plan, which includes a six-month “free trial.” However, there’s a catch: during this time, contractor payments will still be paid $6 per month, and after six months, the plan will switch to a $35 introductory pricing.

QuickBooks Payroll offers a 30-day free trial across its payroll services, allowing one to explore. For all payroll services, QuickBooks Payroll provides a 30-day free trial so users should test out the features without having to commit right away. This trial period is a big benefit if you carefully consider a service before making a long-term commitment. It makes it possible to interact directly with the software, clearly understanding whether it meets your needs as a business.

QuickBooks Payroll comes out on top in this area due to the options it offers. Its payroll services are superior to Gusto’s conditional and sometimes deceptive “free” trial for contractors, as you can test them out for thirty days. QuickBooks Payroll could be a better option if you want to try a service out before committing financially.

Verdict: QuickBooks stands out as the more user-friendly option for the free plan, offering a genuine free trial that allows for a risk-free evaluation of its services.

#3) Design & Functionality

Gusto excels with its sleek, contemporary UI, transforming payroll from a tedious task into a seamless aspect of your day. It prioritizes user experience and simplicity, and its layout is tidy. As a result, you will spend more time acting than figuring out what you need to do. Gusto makes the process simple and easy, whether you’re managing the monthly paycheck or registering a new employee in benefits.

However, QuickBooks offers a range of accounting features beyond payroll, such as cost monitoring, invoicing, and thorough financial reporting. This wealth of capabilities adds complexity, but QuickBooks manages it nicely with a logically constructed, well-organized interface that is thick. Although there is a learning curve, in time, it becomes second nature to individuals who require depth of capabilities.

Based on your needs, Gusto or QuickBooks can be the better product. Gusto will likely be your best option if you’re searching for a solution that makes benefits and payroll administration as simple as possible. However, QuickBooks offers a robust and complete solution if you require a wider variety of accounting operations and are ready to go through a more complicated interface.

Verdict: For design and functionality, the choice is split. Gusto is the go-to for streamlined payroll processes, whereas QuickBooks stands out for businesses that require a full-featured accounting platform.

#4) Accounting

Gusto primarily markets itself as an HR and payroll solution, emphasizing expediting payroll processing, benefits administration, and employee management. Although it connects with widely used accounting software, such as QuickBooks, its built-in accounting features are pretty restricted. Gusto’s strength is not extensive accounting but its capacity to handle payroll and associated activities effectively.

QuickBooks is well known for its extensive accounting functions. It can manage various financial management responsibilities, such as creating thorough financial reports and keeping track of sales and costs. Beyond payroll, QuickBooks is a highly complete accounting system with features that address almost every facet of corporate financing.

Without question, QuickBooks leads the way in accounting. Its extensive accounting toolkit is intended to satisfy the demands of companies requiring in-depth financial reporting and tracking. QuickBooks is the best option if your main requirement is a fully functional accounting software that can manage payroll.

Verdict: For accounting, QuickBooks is the clear choice for businesses that need extensive financial management capabilities.

#5) Bookkeeping

Gusto provides basic bookkeeping features through connections while mainly being recognized for its payroll services. It can easily interface with popular accounting programs, such as QuickBooks, to ensure that your payroll information and bookkeeping records are synchronized. Gusto’s strength is its ability to work in tandem with your current bookkeeping software to simplify and improve payroll data handling, even while it isn’t a bookkeeping solution in and of itself.

Powering the bookkeeping and accounting industry, QuickBooks was created to provide a complete answer for all of your financial management requirements. In addition to handling payroll, it is excellent at organizing invoicing, keeping track of sales and costs, and producing informative financial reports. Bookkeeping is more than just an add-on with QuickBooks; it’s a fundamental component that supports a variety of business sizes and kinds and provides in-depth financial health data.

When it comes to bookkeeping features, QuickBooks is the best option. Because of its extensive feature set and ability to manage a wide range of accounting duties, its bookkeeping tools are essential for companies that take their financial management seriously. QuickBooks is the best option if you’re searching for a program that delves deeply into bookkeeping and accounting in addition to payroll.

Verdict: QuickBooks is the winner for bookkeeping, offering a depth of functionality that Gusto simply can’t match in this domain.

#6) Payroll Services

Gusto’s services are strong and easy to use because it was created with payroll as its primary focus. It simplifies payroll by automating tax filings, employee payments, and benefits administration through a smooth interface. Gusto’s commitment to simplifying payroll is seen by its thorough reporting, simple employee onboarding process, and first-rate customer support for payroll-related issues.

Payroll services are part of QuickBooks’ range of functionalities, covering many accounting functions. Because these services are integrated with QuickBooks’s accounting capabilities, you can see your financial status more comprehensively. QuickBooks Payroll is a powerful and effective tool that handles payments, submits documents, and calculates taxes automatically. However, because its payroll functions are part of a larger package, the emphasis isn’t as clear as it would be with a supplier specializing in payroll.

In particular, when it comes to payroll services, Gusto performs better in this comparison. Because of its platform’s special payroll processing optimization, managing employee compensation—including taxes and benefits—becomes simpler. Gusto is the preferred choice for companies that prioritize payroll efficiency and ease of use because of its user-friendly design and payroll-specific support.

Verdict: For payroll services, Gusto stands out as the better choice. Thanks to its focused approach to payroll processes, it ensures that managing employee compensation is as streamlined and stress-free as possible.

#7) Employee Benefits

Gusto provides robust employee benefits, including health, dental, vision, life, and disability insurance and retirement savings plans. You can easily set up and manage these benefits for your employees within the Gusto platform. Gusto partners with leading providers to offer a comprehensive suite of benefits that can be tailored to meet the needs of your team. This integration means less hassle and more value for your employees, making it a seamless process to offer and manage benefits alongside payroll.

While primarily an accounting tool, QuickBooks offers functionality for handling certain aspects of employee benefits, particularly those related to payroll. However, its approach is more about ensuring that benefits-related deductions and contributions are accurately reflected in payroll calculations rather than offering a robust benefits management system. QuickBooks can work with third-party apps for a more integrated benefits management solution, but it doesn’t provide the same level of native support as Gusto.

Considering the emphasis on directly integrated and comprehensive employee benefits, Gusto clearly takes the lead in this category. Its all-in-one approach to payroll and benefits makes it incredibly efficient for managing your team’s compensation and benefits packages. This focus ensures you can easily offer competitive benefits, enhancing employee satisfaction and loyalty.

Verdict: For employee benefits, Gusto is the better choice. Its built-in benefits administration capabilities make managing a broad spectrum of employee benefits directly within the payroll process more accessible, offering a seamless and efficient experience.

#8) Time Tracking

Gusto offers streamlined time tracking. Employees can clock in and out via the platform or a dedicated app. Administrators can edit hours and connect time data to project management tools. For location-specific tracking, Gusto includes helpful geofencing capabilities.

QuickBooks delivers robust time-tracking features. It tracks time against individual jobs or clients, enabling detailed billing and cost analysis. The mobile app provides GPS tracking for field teams. For further customization, QuickBooks integrates smoothly with popular time-tracking solutions like TSheets.

The ideal choice depends on your business requirements. Gusto is a suitable option if your primary need is simplified time tracking connected to payroll. QuickBooks provides a clear advantage for businesses requiring in-depth job costing, comprehensive reporting, and greater flexibility.

Verdict: QuickBooks takes the lead in terms of extensive time-tracking capabilities.

#9) Payments & Banking

Gusto keeps things simple with its payment options. You can pay employees and contractors by direct deposit or have physical checks issued. Gusto also handles tax payments and filings on your behalf. For some businesses, this streamlined approach is entirely sufficient.

QuickBooks delivers a broader range of payment and banking features and flexible spending accounts.  You’ll find direct deposit, check printing, and tax filing functionality similar to Gusto. However, QuickBooks allows you to send invoices, accept online customer payments, and connect with business bank accounts, creating a more centralized financial hub experience.

QuickBooks has the edge here if you need diverse payment tools or want greater integration between accounting and banking functions. If your priority is simple payroll disbursement and tax management, Gusto can do the job.

Verdict: QuickBooks is the winner for expanded payments and banking features.

#10) Human Resources

Gusto excels in providing a solid foundation for the HR resource center. You can manage onboarding, e-signatures, employee profiles, and time-off requests and generate an organizational chart. Gusto also offers add-ons like health benefits and retirement plans, creating a more comprehensive HR solution.

QuickBooks Payroll includes basic features like employee data and the ability to run reports. However, it lacks the depth of dedicated HR features found in Gusto.  QuickBooks is more focused on core payroll functions and basic compliance.

Gusto is the clear winner if you’re looking for a platform that combines payroll with robust HR support.  QuickBooks Online could be enough if your HR needs center around fundamental payroll management and reporting.

Verdict: For expanded HR capabilities, Gusto is the winning choice.

#11) Customer Support Team

Gusto emphasizes modern support options. You can access responsive, US-based phone, email, and chat support. Additionally, they have a helpful resource center and dedicated HR experts on the higher-priced plans.

QuickBooks has a vast network of resources, including phone support, FAQs, and a community forum. However, wait times for phone support can sometimes be lengthy. They also offer priority support for higher-priced subscriptions.

This depends on your preferred communication style. Gusto generally has faster response times and a more personal touch. If you value direct access and comprehensive assistance, Gusto has the advantage. For larger businesses or those needing 24/7 support, QuickBooks offers a more extensive array of options.

Verdict: For fast, personalized support, Gusto excels.

Final Thoughts on Gusto vs QuickBooks

Comparing Gusto and QuickBooks as bookkeeping, accounting, and payroll providers in several vital aspects reveals that each platform is superior in its own right.

Gusto’s user-friendly interface and all-inclusive approach to payroll processing and employee benefits make it the best option for Payroll and HR. Because of its expertise in these fields, it is the best tool for companies looking to streamline their payroll and HR processes.

However, Intuit QuickBooks payroll excels at bookkeeping and accounting. It is an essential tool for anybody needing a complete financial management system because of its extensive feature set, which includes everything from financial reporting to invoicing. Its strength is its capacity to offer a thorough understanding of your company’s financial situation, backed by an extensive toolkit made for intricate accounting duties.

Thus, it depends on your needs, or maybe you need both:

• Gusto: This is the best option if payroll and HR are your top priorities because it’s easy to use, efficient, and offers a variety of perks to employees.
• QuickBooks: This is the most comprehensive and capable accounting and bookkeeping software available.

So pick Gusto for easy HR and payroll administration and QuickBooks for a wealth of bookkeeping and accounting services.

Try the right tool today to ensure it most effectively supports your business!