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Gusto vs Xero
Gusto is payroll-only, while Xero provides full accounting plus optional payroll integration.
Short answer: Pick Gusto if you want all-in-one payroll, benefits & HR; pick Xero if you want all-in-one cloud accounting. Gusto starts at $49/month; Xero has a free plan.
Which to pick
Pick Gusto if you want…
- All-in-one payroll, benefits & HR
- Payroll and benefits
Pick Xero if you want…
- All-in-one cloud accounting
- A free plan to start with
Side by side
- What it is
- Gusto:Gusto is an online platform that combines payroll, benefits, and HR tools for small and medium businesses.
- Xero:Xero is online accounting software that connects banks, accountants, and business apps to manage finances.
- Best for
- Gusto:All-in-one payroll, benefits & HR
- Xero:All-in-one cloud accounting
- Who it’s for
- Gusto:Small to medium businesses that need payroll, benefits, and HR automation.
- Xero:Small to medium businesses needing accounting, invoicing, payroll, and cash-flow tools.
- Pricing
- Gusto:Paid
- Xero:Freemium
- Starting price
- Gusto:$49/month (Simple)
- Xero:—
- Free plan or trial
- Gusto:—
- Xero:Free trial
- Plans
- Gusto:Simple $49/mo per month · Plus $80/mo per month · Premium $180/mo per month
- Xero:—
- Works with
- Gusto:QuickBooks, Xero, Aplos, ZipBooks, Autobooks, FreshBooks, Expensify, Hubstaff
- Xero:—
Gusto features
- Unlimited payroll runs. Run unlimited payrolls each month with automatic tax filings and payments.
- AutoPilot™ payroll automation. Set payroll on autopilot to process and file taxes automatically.
- Time tracking & scheduling. Sync employee hours, PTO, and overtime directly to payroll.
- Benefits administration. Offer health, dental, vision, 401(k) and other benefits with automated enrollment.
- Hiring & onboarding tools. Create offer letters, onboarding checklists and collect digital signatures.
- Compliance management. Handle required trainings, policies, tax registrations and filings.
- Contractor payments. Pay domestic and global contractors with no per-contractor monthly fee.
- Money management (Gusto Money). Manage bills, invoicing and cash position with a dedicated dashboard.
Xero features
- Smart Document Capture. Automatically pulls bills and receipts into Xero for organized records.
- Real-time cash-flow insights. Provides live reports and forecasts to help manage cash flow.
- Invoicing & payments. Create, send, and accept online invoice payments with ACH included.
- Bank reconciliation. Auto-reconcile bank transactions to keep books up to date.
- Payroll integration. Xero Payroll powered by Gusto handles payroll taxes and compliance.
- Performance dashboards. Customizable dashboards and health scorecards for financial analytics.
Gusto vs Xero FAQ
What is the difference between Gusto and Xero?+
Gusto is payroll-only, while Xero provides full accounting plus optional payroll integration.
Should I use Gusto or Xero?+
Pick Gusto if you want all-in-one payroll, benefits & HR or payroll and benefits. Pick Xero if you want all-in-one cloud accounting or a free plan to start with.
Is Gusto or Xero free?+
Gusto is paid, from $49/month (Simple). Xero has a free plan and paid plans.
On DevHunt
Based on each tool's website and DevHunt data. Details may change; check the official sites.