Clearbooks vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Clearbooks
Clearbooks is a UK-focused cloud accounting software designed for small businesses and sole traders. It covers invoicing, expenses, payroll, and VAT returns in a simple and affordable package.
Gusto
Gusto is a full-service payroll platform built for small businesses in the US. It handles payroll taxes automatically, offers employee benefits administration, and includes onboarding tools that make it easy to bring on new hires. Gusto is known for its clean interface and transparent pricing, making it a top choice for founders managing payroll for the first time.
Pros
- ✓Built specifically for UK accounting and VAT
- ✓Simple and easy to use
- ✓Affordable pricing
- ✓Good invoicing features
- ✓Solid MTD (Making Tax Digital) compliance
Cons
- ✗Limited outside UK market
- ✗Fewer integrations than QuickBooks or Xero
- ✗Less suitable for larger businesses
- ✗Support can be slow
Pros
- ✓Automatic federal, state, and local tax filing saves hours each month
- ✓Transparent flat-rate pricing with no hidden fees
- ✓Excellent onboarding flow with offer letters and e-signatures
- ✓Strong benefits administration including health, dental, and 401k
Cons
- ✗International payroll is limited and requires third-party tools
- ✗Can get expensive as headcount grows beyond 50 employees
- ✗Reporting and analytics are basic compared to enterprise tools
Clearbooks vs Gusto: Side by Side
| Factor | Clearbooks | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Payroll Software |
| Pricing Model | Paid | Paid |
| Starting Price | Contact for pricing | $40/mo + $6/person |
| Best For | UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
Clearbooks Features
- ✓Invoicing
- ✓bank reconciliation
- ✓expense tracking
- ✓VAT returns
- ✓payroll
- ✓financial reporting
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Our Take
Choose Clearbooks if uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Also Consider
If neither Clearbooks nor Gusto is the right fit, Dext is worth evaluating.
Dext
Bookkeepers, accountants, and businesses with high receipt volumes wanting to eliminate manual data entry
From $15/mo
Frequently Asked Questions
What is the difference between Clearbooks and Gusto?
Clearbooks is best for uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance. Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits.
Which is better, Clearbooks or Gusto?
Choose Clearbooks if uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does Clearbooks cost?
Visit Clearbooks website for current pricing.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use Clearbooks?
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits