Gusto vs Wave

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.

Paid pricing · Get Pricing →

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.

Freemium pricing · Get Pricing →

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

• ✓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

Best For

Small businesses under 100 employees wanting full-service payroll with benefits

Best For

Solopreneurs and very small businesses wanting free accounting and invoicing software