FreeAgent
Gusto
| Feature | FreeAgent | Gusto |
|---|---|---|
| Pricing | From $14/mo | From $40/mo |
| Free Plan | ✗ No | ✗ No |
| Rating | 4.3 / 5 | 4.4 / 5 |
| Best For | uk-freelancers, sole-traders, small-businesses, contractors | small-businesses, startups, accountants, us-companies |
| Founded | 2007 | 2011 |
| Invoicing | ✓ | ✗ |
| Expenses | ✓ | ✗ |
| Tax Returns | ✓ | ✗ |
| Bank Reconciliation | ✓ | ✗ |
| Time Tracking | ✓ | ✓ |
| Project Management | ✓ | ✗ |
| Payroll | ✗ | ✓ |
| Benefits | ✗ | ✓ |
| Tax Filing | ✗ | ✓ |
| Onboarding | ✗ | ✓ |
| Hiring | ✗ | ✓ |
| Compliance | ✗ | ✓ |
✓ FreeAgent Pros
- Great for UK businesses
- HMRC compliant
- Easy invoicing
- Bank feeds
✗ FreeAgent Cons
- UK-focused
- Limited for larger businesses
- No inventory management
✓ Gusto Pros
- Easiest payroll software to set up and run
- Automatic federal, state, and local tax filings
- Health insurance and 401(k) brokering built-in
- Excellent employee onboarding experience
✗ Gusto Cons
- US-only — no international payroll
- Gets expensive as headcount grows
- Limited HR features compared to BambooHR
The Verdict
FreeAgent is built for uk freelancers and sole traders, with a focus on invoicing and expenses. Gusto targets small businesses and startups and leads with payroll and benefits.
On pricing, FreeAgent is the clear winner for budget-conscious users — starting at $14/mo compared to $40/mo for Gusto. That $26/mo difference adds up quickly for growing teams.
Neither tool offers a free plan, so factor the subscription cost into your decision from the start.
Feature-wise, Gusto offers broader built-in capabilities (7 features vs 6), while FreeAgent takes a more focused approach — which can mean a simpler, faster onboarding experience.
Both tools are a solid fit for small businesses — in those cases, the decision often comes down to workflow style and how your team prefers to organize work.
This is a genuinely close comparison. If you can, sign up for both free trials (where available) and run a one-week test with your actual team tasks before deciding.