Business management involves countless responsibilities that require effective tools to optimize payroll, financial management, and overall operations. Gusto and Wave are two platforms designed to simplify these processes, each catering to distinct business needs.
But which one actually delivers the best features for your specific needs?
While Gusto is praised for its all-in-one HR and payroll capabilities, Wave focuses on empowering business owners and freelancers with advanced accounting tools. Choosing between them requires careful consideration of functionality, cost-effectiveness, and user experience to ensure the best fit for your operational requirements.
This guide provides a detailed analysis of Gusto and Wave, highlighting their strengths and limitations to help you make an informed decision.
Gusto Vs Wave: At A Glance
Feature
Gusto
Wave
Payroll Management
Comprehensive payroll processing with automated tax filing, direct deposit
Tax filings and payments, along with pay stubs
Accounting
Expense tracking and integrations with accounting software like QuickBooks or Xero
Full-featured accounting software with invoicing, receipt scanning, and expense categorization
Employee Benefits
Health insurance, 401(k) plans, workers' compensation, and more
Expense policy, Remote work, Health and Wellness, Accidents
Mobile Accessibility
Mobile app functionality for staff
Dedicated mobile app for invoicing and receipt tracking
Pricing
Starts from $40/month
Free Starter Plan, Pro Plan starts from $16/month
What Is Gusto?
Gusto HR software is a cloud-based payroll, benefits, and HR management solution that is designed to simplify and automate administrative tasks. The platform also provides tools for onboarding, employee self-service, and reporting, which makes it an all-in-one solution for businesses to save time and stay compliant with changing regulations.
Unique Features Of Gusto
Integrated Time Tracking: Gusto allows businesses to track employee hours and PTO directly within the platform
Self-Service Portal: Employees can access their pay stubs, W-2s, benefits information, and more
Easy Onboarding: Gusto simplifies the employee onboarding process with automated form submissions, e-signatures, and direct deposit setup
Who Are The Main Users?
Gusto has been designed with small and growing businesses in mind, offering scalable solutions for businesses, including:
Healthcare
Retail
Construction
Real Estate
Pros And Cons Of Gusto
Pros:
The payroll features are easy to set-up and use
Users appreciate simple usage, requiring few clicks
Customer support team is responsive and easy to work with
Cons:
Takes time to implement changes when adjusting payment schedules
Limited integration capabilities
What Is Wave?
Wave is an accounting and payroll software designed for small businesses, freelancers, and solopreneurs. It helps businesses manage their financials and offers solutions for invoicing, bookkeeping, payroll, and receipts. The software makes accounting and financial management accessible, especially for those with limited resources.
Unique Features Of Wave
Integrated Invoicing: The software enables users to create and send professional invoices directly
Receipt Scanning: It also allows users to scan and upload receipts, automatically matching them to transactions for easier expense tracking
Bank Account Integration: Wave easily connects to your bank for automatic transaction imports
Who Are The Main Users?
Wave’s accounting and payroll features are perfect for:
Freelancers and Solopreneurs
Small businesses
Startups and Entrepreneurs
Pros And Cons Of Wave
Pros:
Automatically matches receipts to accounting entries
Syncs directly with bank account to import transactions
Users appreciate the design and interface
Cons:
Users often have trouble reconciling credit card payments
The platform lacks extensive HR features
Gusto Vs Wave: Side-By-Side Comparison
Payroll Management
Gusto’s payroll management system is one of its standout features, designed to simplify the complex tasks associated with paying employees, calculating tax liabilities, and ensuring compliance. The platform automatically handles tax calculations and filings for federal, state, and local levels.
Wave includes automatic tax calculations, direct deposit for employees, and self-service pay stubs. It covers essential features like automatic payroll calculations and tax filings for supported states. The software also helps generate W2 and 1099 forms for tax season.
Winner: Gusto takes the edge here because of its automated payroll system that integrates easily with other HR features.
Employee Benefits Administration
Gusto’s allows employees to get advantage from variety of benefits options, including health, dental, and vision insurance, 401(k) retirement plans, life insurance, and workers’ compensation. Gusto also takes care of compliance by ensuring that all benefits packages meet legal requirements, including Affordable Care Act (ACA) standards.
Wave offers health insurance plans, policies on drug consumption and smoking, and tools for maintaining a healthy workplace. Additionally, Wave helps employers support people with disabilities by providing tools and policies that promote equal opportunities and workplace inclusion.
Winner: Gusto stands out for its comprehensive range of benefits, including health and its focus on compliance with legal standards.
Accounting Features
With Gusto’s is primarily known for its payroll and HR tools, it does offer accounting features to help businesses manage expenses and integrate with
popular accounting software. The integration with third-party tools, such as Autobooks, Ignition, etc., allows businesses to link their payroll and HR data with accounting software.
Wave allows users to benefit from
invoicing,
expense tracking,
financial reporting, bank reconciliation and payroll integration. It provides small businesses and freelancers with the capability to manage their entire financial ecosystem. The software also offers features like double-entry bookkeeping, customizable financial reports, and automatic bank account syncing.
Winner: Wave takes the edge here due to its more comprehensive accounting suite, providing small businesses with everything to manage finances.
Pricing
Gusto’s offers a tiered pricing structure designed to cater to businesses of varying sizes and needs. Its plans include:
Simple –$40/month plus $6/month per person
Plus -$80/month plus $12/month per person
Premium -$180/month plus $22/month per person
Additionally, contractors-only businesses can opt for the Contractor plan
Contractor Only -$35/month plus $6/month per person
On the other hand, Wave’s core accounting, invoicing, and receipt-scanning tools are completely free, making it an ideal choice for small businesses and freelancers on a budget. Its plans are:
Starter Plan -$0
Pro Plan -$16/month
Winner: When it comes to pricing, Wave wins for businesses needing free accounting tools; however, for payroll and HR, Gusto takes the edge due to its broader feature set
Final Verdict: Which HR Software Is The Best?
In a nutshell, both platforms bring something valuable to the table, each excelling in its distinct domain. Gusto shines as a comprehensive HR powerhouse, integrating payroll, benefits administration, and compliance tools in one platform. Meanwhile, Wave is a game-changer for small businesses and entrepreneurs looking for budget-friendly, and easy-to-use accounting tools.
The real winner, however, isn’t determined by features alone but by how well it fits into your business model. Both Gusto and Wave embody what modern businesses need. The decision is less about which software is objectively superior and more about finding the perfect fit for your business’s current stage and future goals.
