Gusto vs Clearbooks
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
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.
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.
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
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
Gusto vs Clearbooks: Side by Side
| Factor | Gusto | Clearbooks |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | $40/mo + $6/person | Contact for pricing |
| Best For | Small businesses under 100 employees wanting full-service payroll with benefits | UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance |
| Our Pick | — | — |
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Clearbooks Features
- ✓Invoicing
- ✓bank reconciliation
- ✓expense tracking
- ✓VAT returns
- ✓payroll
- ✓financial reporting
Pricing Comparison
Our Take
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Clearbooks if 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
Best For
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance
Also Consider
If neither Gusto nor Clearbooks is the right fit, Multiplier is worth evaluating.
Multiplier
Startups and SMBs hiring internationally on a budget
From $40/contractor/mo
Frequently Asked Questions
What is the difference between Gusto and Clearbooks?
Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits. Clearbooks is best for uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance.
Which is better, Gusto or Clearbooks?
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose Clearbooks if uk small businesses and sole traders wanting simple affordable accounting with strong vat and mtd compliance.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
How much does Clearbooks cost?
Visit Clearbooks website for current pricing.
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits
Who should use Clearbooks?
UK small businesses and sole traders wanting simple affordable accounting with strong VAT and MTD compliance