Melio vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Melio
Melio is a business bill payment platform that simplifies accounts payable for small businesses. It lets you pay any vendor by bank transfer or card, even if they only accept checks, and syncs with QuickBooks and Xero.
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
- ✓Free to use for bank transfers
- ✓Pay vendors who only accept checks
- ✓Seamless QuickBooks and Xero sync
- ✓Good for managing AP workflows
- ✓Fast setup
Cons
- ✗Focused only on accounts payable, not full accounting
- ✗Card payments carry a fee
- ✗Limited reporting
- ✗Not a replacement for full accounting software
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
Melio vs Gusto: Side by Side
| Factor | Melio | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Payroll Software |
| Pricing Model | Freemium | Paid |
| Starting Price | Contact for pricing | $40/mo + $6/person |
| Best For | Small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
Melio Features
- ✓Bill payments
- ✓invoicing
- ✓payment scheduling
- ✓vendor management
- ✓bank sync
- ✓approval workflows
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Our Take
Choose Melio if small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
Small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Also Consider
If neither Melio 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 Melio and Gusto?
Melio is best for small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software. Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits.
Which is better, Melio or Gusto?
Choose Melio if small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does Melio cost?
Visit Melio website for current pricing.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use Melio?
Small businesses wanting a simple free tool to manage bill payments and accounts payable alongside their existing accounting software
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits