FreshBooks
Gusto
| Feature | FreshBooks | Gusto |
|---|---|---|
| Pricing | From $19/mo | From $40/mo |
| Free Plan | ✗ No | ✗ No |
| Rating | 4.4 / 5 | 4.4 / 5 |
| Best For | freelancers, consultants, solopreneurs, service-businesses | small-businesses, startups, accountants, us-companies |
| Founded | 2003 | 2011 |
| Invoicing | ✓ | ✗ |
| Expense Tracking | ✓ | ✗ |
| Time Tracking | ✓ | ✓ |
| Estimates | ✓ | ✗ |
| Reports | ✓ | ✗ |
| Payments | ✓ | ✗ |
| Project Profitability | ✓ | ✗ |
| Payroll | ✗ | ✓ |
| Benefits | ✗ | ✓ |
| Tax Filing | ✗ | ✓ |
| Onboarding | ✗ | ✓ |
| Hiring | ✗ | ✓ |
| Compliance | ✗ | ✓ |
✓ FreshBooks Pros
- Easiest invoicing tool for freelancers
- Beautiful invoice templates
- Built-in time tracking for billable hours
- Excellent mobile app for on-the-go
✗ FreshBooks Cons
- Limited to 5 clients on Lite plan
- Less powerful than QuickBooks for complex accounting
- 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
FreshBooks is built for freelancers and consultants, with a focus on invoicing and expense-tracking. Gusto targets small businesses and startups and leads with payroll and benefits.
On pricing, FreshBooks is the clear winner for budget-conscious users — starting at $19/mo compared to $40/mo for Gusto. That $21/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.
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.