Wave vs Gusto
A head-to-head comparison to help you pick the right tool
Last updated: April 30, 2026
Wave
Wave is a free accounting and invoicing platform designed for small businesses, freelancers, and solopreneurs. It offers genuinely free accounting, invoicing, and receipt scanning with no subscription fee. Wave makes money through payment processing and payroll add-ons. It is one of the best free accounting tools available for very small businesses with simple needs.
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
- ✓Genuinely free accounting and invoicing — no subscription required
- ✓Clean and easy to use interface
- ✓Good enough for most very small businesses and freelancers
- ✓Receipt scanning and bank connections included free
Cons
- ✗Limited features compared to paid alternatives
- ✗Customer support is minimal on the free plan
- ✗Not suitable for growing businesses with complex needs
- ✗Payroll and payment processing add-ons can add up in cost
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
Wave vs Gusto: Side by Side
| Factor | Wave | Gusto |
|---|---|---|
| User Rating | N/A | N/A |
| Category | Accounting Software | Payroll Software |
| Pricing Model | Freemium | Paid |
| Starting Price | Free | $40/mo + $6/person |
| Best For | Solopreneurs and very small businesses wanting free accounting and invoicing software | Small businesses under 100 employees wanting full-service payroll with benefits |
| Our Pick | — | — |
Wave Features
- ✓Free accounting
- ✓invoicing
- ✓receipt scanning
- ✓bank connections
- ✓financial reporting
- ✓payments processing
- ✓payroll add-on
- ✓mobile app
Gusto Features
- ✓Full-service payroll
- ✓automatic tax filing
- ✓direct deposit
- ✓employee benefits
- ✓onboarding
- ✓PTO tracking
- ✓time tracking
- ✓contractor payments
Pricing Comparison
Our Take
Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
Best For
Solopreneurs and very small businesses wanting free accounting and invoicing software
Best For
Small businesses under 100 employees wanting full-service payroll with benefits
Also Consider
If neither Wave 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 Wave and Gusto?
Wave is best for solopreneurs and very small businesses wanting free accounting and invoicing software. Gusto is best for small businesses under 100 employees wanting full-service payroll with benefits.
Which is better, Wave or Gusto?
Choose Wave if solopreneurs and very small businesses wanting free accounting and invoicing software. Choose Gusto if small businesses under 100 employees wanting full-service payroll with benefits.
How much does Wave cost?
Wave starts at Free. Pricing model: Freemium.
How much does Gusto cost?
Gusto starts at $40/mo + $6/person. Pricing model: Paid.
Who should use Wave?
Solopreneurs and very small businesses wanting free accounting and invoicing software
Who should use Gusto?
Small businesses under 100 employees wanting full-service payroll with benefits