Gusto vs FreshBooks
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.
FreshBooks
FreshBooks is an accounting and invoicing platform designed specifically for freelancers, self-employed professionals, and small service-based businesses. It is known for its exceptional ease of use and beautiful invoicing tools. FreshBooks focuses on making accounting simple for non-accountants who just need to track income, expenses, and get paid quickly.
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
- ✓Easiest accounting software to learn and use — ideal for non-accountants
- ✓Beautiful, professional invoice templates
- ✓Built-in time tracking and project management
- ✓Excellent mobile app for tracking expenses on the go
Cons
- ✗Not suitable for product-based businesses needing inventory management
- ✗Limited features for complex accounting needs
- ✗More expensive than competitors for what you get on lower tiers
- ✗Payroll requires third-party integration
Gusto vs FreshBooks: Side by Side
| Factor | Gusto | FreshBooks |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Payroll Software | Accounting Software |
| Pricing Model | Paid | Paid |
| Starting Price | $40/mo + $6/person | $19/mo |
| Best For | Small businesses under 100 employees wanting full-service payroll with benefits | Freelancers and small service businesses wanting simple, beautiful invoicing and accounting |
| Our Pick | — | — |
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
FreshBooks Features
- ✓Invoicing
- ✓expense tracking
- ✓time tracking
- ✓project management
- ✓payments
- ✓financial reporting
- ✓bank reconciliation
- ✓mobile app
- ✓client portal
Pricing Comparison
Our Take
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Best For
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting
Also Consider
If neither Gusto nor FreshBooks 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 FreshBooks?
Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits. FreshBooks is best for freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
Which is better, Gusto or FreshBooks?
Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits. Choose FreshBooks if freelancers and small service businesses wanting simple, beautiful invoicing and accounting.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
How much does FreshBooks cost?
FreshBooks starts at $19/mo. Pricing model: Paid.
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits
Who should use FreshBooks?
Freelancers and small service businesses wanting simple, beautiful invoicing and accounting