QuickBooks vs. Gusto: Pros, Cons, and Which to Choose in 2025

Two popular choices in the small to mid-sized business space are QuickBooks and Gusto. While both platforms serve essential business functions, they differ in core offerings, pricing, integrations, and overall value. If you're trying to choose between the two in 2025, this comparison will help clarify which is best suited for your specific business needs.

QuickBooks is a robust accounting software developed by Intuit. It offers payroll as an add-on to its accounting platform. Ideal for businesses looking to manage everything from expenses and invoicing to payroll and tax filing within one system.
Gusto is a cloud-based payroll and HR platform designed primarily for employee management. It includes features like full-service payroll, employee onboarding, benefits administration, and compliance tools.

What is QuickBooks?

QuickBooks, developed by Intuit, is a leading accounting software platform widely used by small to mid-sized businesses for bookkeeping, financial reporting, invoicing, tax filing, and payroll management. It offers a variety of plans catering to different business needs, from freelancers to larger companies.

Key Features of QuickBooks:

• Invoicing and billing

• Expense tracking and categorization

• Bank reconciliation

• Tax filing and reporting

• Payroll add-ons

• Financial dashboards and reporting

What is Gusto?

Gusto is an all-in-one payroll and HR solution designed for small businesses. It streamlines employee onboarding, benefits administration, tax filing, and payroll processing. Gusto is known for its simplicity and efficiency in managing employees and contractors.

Key Features of Gusto:

• Automated payroll processing

• Employee benefits management

• Onboarding tools

• Time tracking

• Compliance support and documentation

• Direct deposits and tax filings

Detailed Feature Comparison

1. Payroll Functionality

QuickBooks Payroll is available as an add-on, offering basic to full-service options. It integrates seamlessly with QuickBooks Accounting, making it a great choice for businesses already using QuickBooks for bookkeeping.

Gusto, on the other hand, offers a more robust and user-friendly payroll experience out of the box. It automates tax filings, direct deposits, and even handles state and federal compliance.

2. Accounting & Bookkeeping

QuickBooks is primarily an accounting software, which makes it far superior in this area. It provides detailed financial reports, expense categorization, bank feeds, and integrations with payment processors.

Gusto does not offer native accounting features but integrates well with QuickBooks, Xero, and other accounting tools.

3. HR and Compliance Tools

Gusto shines when it comes to HR. It offers tools for onboarding, employee record management, compliance alerts, and even access to HR experts in premium plans.

QuickBooks Payroll has limited HR functionalities and lacks the depth that Gusto offers.

4. Ease of Use

Both platforms offer a clean and intuitive interface. QuickBooks may have a steeper learning curve for non-accountants, while Gusto is often praised for its simplicity.

5. Pricing

QuickBooks starts at about $25/month for accounting and around $45/month for payroll services. The cost can rise quickly as you add features and users.

Gusto starts at $40/month plus $6/user, which is straightforward and often more affordable for smaller teams needing payroll and HR features.

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When to Choose QuickBooks

• You need comprehensive accounting software with optional payroll features.

• Youre managing inventory, invoicing, vendors, and tax reports all in one system.

• You prefer a scalable solution like QuickBooks Enterprise Hosting to support complex business needs.

• You want to access your QuickBooks remotely using QuickBooks Hosting for better mobility and data protection.

Ideal For:

• Growing businesses needing full accounting control.

• Enterprises requiring custom workflows and user roles.

• Firms that already use QuickBooks and want to add payroll without switching platforms.

When to Choose Gusto

• You want a simple and reliable payroll & HR system with minimal setup.

• You dont need complex accounting features within the same tool.

• Youre looking for strong compliance tools and a smooth employee experience.

Ideal For:

• Startups and small businesses with limited in-house HR resources.

• Companies needing automated tax filing and onboarding.

• Teams that already use a separate accounting system like QuickBooks or Xero.

Can You Use Both Together?

Yes! Many businesses use Gusto for payroll & HR and QuickBooks for accounting. Gusto offers seamless integrations with QuickBooks Online, allowing your payroll data to automatically sync with your accounting records. This hybrid approach can offer the best of both worlds if youre willing to manage two platforms.

How QuickBooks Hosting Enhances the Experience

By opting for QuickBooks Hosting, you can turn the traditional desktop version of QuickBooks into a cloud-based solution. This provides:

• Remote Access: Work from anywhere, anytime.

• Improved Collaboration: Teams and accountants can access real-time data.

• Enhanced Security: Backups, encryption, and disaster recovery.

• Cost Efficiency: Reduces IT overhead with centralized access and maintenance.

For larger businesses, QuickBooks Enterprise Hosting offers added power with:

• Advanced reporting tools

• Inventory management

• Multi-user functionality

• Faster processing and custom permissions

Final Verdict: Gusto or QuickBooks?

Choose QuickBooks if:

• You prioritize full accounting features.

• You want everything in one ecosystem.

• You're looking for cloud flexibility with QuickBooks Hosting.
  
  

Choose Gusto if:

• Your focus is on payroll, HR, and employee benefits.

• You want an easy-to-use interface with powerful automation.

• You already have a solid accounting system in place.
  
  

Conclusion

The Gusto vs. QuickBooks debate ultimately comes down to your business needs. QuickBooks shines in accounting and scalability, especially when paired with cloud solutions like QuickBooks Hosting and QuickBooks Enterprise Hosting. Gusto excels in employee management and simplicity for payroll and HR tasks.

Whichever you choose in 2025, ensure it aligns with your companys growth goals, compliance requirements, and overall workflow preferences.