Gusto
Gusto is an all-in-one HR platform that automates payroll, manages employee benefits, and streamlines hiring and onboarding processes for small to medium-sized businesses looking to simplify their people operations.
Xero
Xero is a cloud-based accounting software designed for small business owners and accountants to manage invoices, bank reconciliation, inventory, and payroll through a real-time financial dashboard.
Quick Comparison
| Feature | Gusto | Xero |
|---|---|---|
| Website | gusto.com | xero.com |
| Pricing Model | Subscription | Subscription |
| Starting Price | $40/month | $15/month |
| FREE Trial | ✘ No free trial | ✓ 30 days free trial |
| Free Plan | ✘ No free plan | ✘ No free plan |
| Product Demo | ✓ Request demo here | ✓ Request demo here |
| Deployment | ||
| Integrations | ||
| Target Users | ||
| Target Industries | ||
| Customer Count | 0 | 0 |
| Founded Year | 2011 | 2006 |
| Headquarters | San Francisco, USA | Wellington, New Zealand |
Overview
Gusto
Gusto simplifies how you manage your team by bringing payroll, benefits, and HR into one intuitive platform. You can run payroll in just a few clicks, with all local, state, and federal tax filings handled automatically. Beyond just payments, the platform helps you support your team with health insurance, 401(k) plans, and workers' compensation, all integrated directly into your payroll workflow to ensure compliance and accuracy.
You can also streamline your entire employee lifecycle from recruitment to offboarding. Use the platform to send offer letters, conduct digital onboarding, and track time and attendance without switching between different tools. Whether you are hiring your first employee or managing a growing team across multiple states, you get the tools you need to stay organized and compliant while focusing on growing your business.
Xero
Xero is a cloud-based accounting platform that helps you take control of your small business finances from anywhere. Instead of manual data entry, you can automate your bank feeds so your transactions flow directly into your accounts for easy reconciliation. You can track your cash flow in real-time, send professional recurring invoices, and manage your bills to keep your suppliers happy.
The platform is built for collaboration, allowing you to share access with your accountant or bookkeeper so you are always looking at the same numbers. Whether you are managing inventory, processing payroll, or tracking project expenses, you can handle everything through a single dashboard. It simplifies complex tasks like tax preparation and financial reporting, giving you more time to focus on growing your business.
Overview
Gusto Features
- Automated Payroll Run payroll in minutes with automatic tax calculations and filings for all 50 U.S. states.
- Benefits Administration Sync medical, dental, and vision plans directly with your payroll for seamless premium deductions and enrollment.
- Digital Onboarding Send offer letters and collect signed documents electronically so your new hires are ready on day one.
- Time Tracking Track employee hours and PTO requests that automatically sync with your payroll to eliminate manual data entry.
- Compliance Alerts Stay ahead of changing labor laws with automated notifications and access to certified HR experts for guidance.
- Employee Self-Service Give your team their own portal to download paystubs, view tax forms, and manage their personal information.
Xero Features
- Bank Reconciliation. Connect your bank accounts to automatically import and categorize your transactions every day for an up-to-date view of your cash.
- Online Invoicing. Create and send professional invoices from your desktop or mobile device and let customers pay you instantly via credit card.
- Bill Management. Track and pay your bills on time to build better supplier relationships and get a clear overview of upcoming accounts payable.
- Expense Tracking. Capture costs by taking photos of receipts with your phone to automate expense claims and keep your records digital.
- Inventory Management. Keep track of what you have in stock, populate invoices with items, and monitor which products are your best sellers.
- Project Tracking. Monitor your project profit margins by tracking time and expenses against specific jobs to ensure every hour is billed.
Pricing Comparison
Gusto Pricing
- Full-service payroll for one state
- Employee self-service profiles
- Basic hiring and onboarding tools
- Gusto wallet mobile app
- Standard payroll reports
- Workers' comp administration
- Everything in Simple, plus:
- Multi-state payroll capabilities
- Next-day direct deposit
- Time tracking and PTO management
- Advanced hiring and onboarding
- Performance management tools
Xero Pricing
- Send up to 20 invoices
- Enter up to 5 bills
- Reconcile bank transactions
- Capture receipts with Hubdoc
- Short-term cash flow snapshots
- Everything in Early, plus:
- Send unlimited invoices
- Enter unlimited bills
- Bulk reconcile bank transactions
- Standard business reporting
Pros & Cons
Gusto
Pros
- Extremely intuitive interface that requires almost no training
- Automated tax filings save hours of manual work
- Seamless integration between payroll and employee benefits
- Helpful automated reminders for important compliance deadlines
Cons
- Customer support response times can be slow during peak seasons
- State tax registration assistance is limited for new businesses
- Advanced HR features require the most expensive plan
Xero
Pros
- Clean and intuitive user interface
- Excellent mobile app for managing finances
- Seamless collaboration with your accountant
- Massive ecosystem of third-party app integrations
- Automated bank feeds save significant time
Cons
- Strict limits on the entry-level plan
- Multi-currency support requires the highest tier
- Customer support is primarily online-only
- Recent price increases for long-term users