Managing your business’s expenses and payroll accurately and efficiently is as important as managing its revenue. The best way to do this is to automate the process, and for this, you need a human resource (HR) or payroll platform with expense management capabilities.
Since there are many such software available, it can be challenging to find the best one. Xero, Gusto, and Ramp are among the most trusted names in the industry. In this comprehensive Xero vs Gusto vs Ramp comparison guide, we’ll help you determine which platform stands out as the best choice.
- Xero: Primarily designed as accounting software for small businesses, Xero Accounting Solution offers a suite of tools for managing financial operations. This includes invoicing, expense tracking, payroll, inventory, and bank reconciliation, making it a reliable solution for streamlining financial tasks
- Gusto: An all-in-one HR platform tailored for small and growing businesses, Gusto HR software simplifies HR management by automating payroll processing, tax calculations, filings, and payments. It also offers benefits administration, time tracking, and compliance tools, helping businesses manage their workforce efficiently
- Ramp: The software stands out with its automated expense tracking, real-time insights, and built-in controls. Ramp offers a transparent and efficient way to manage company spending, providing businesses with a clear overview of their financial health and helping prevent unnecessary expenditures
Feature | Xero | Gusto | Ramp |
Ease Of Use | User-friendly interface with intuitive navigation, though it can be complex for non-accountants | Simple and straightforward setup and workflows, ideal for small businesses | Highly intuitive interface optimized for corporate finance and expense management |
Payroll | Limited payroll features; integrates with Gusto for full payroll services | Comprehensive payroll solution, including tax filings, benefits, and compliance | No native payroll; integrates with external payroll systems for expense tracking |
Integrations | Extensive integrations with other software, including Gusto, Shopify, and Stripe | Integrates with accounting tools like Xero and QuickBooks, as well as time-tracking apps | Integrates with accounting software, travel platforms, and enterprise tools |
Expense Management | Basic expense tracking; integrates with tools like DocHub for receipt management | Limited expense management features; mainly focuses on payroll-related expenses | Industry-leading expense management with automated receipt matching and spending controls |
Mobile App | Solid mobile app for invoicing, tracking expenses, and viewing reports | Basic mobile functionality focused on payroll approvals and employee self-service | Feature-rich app for tracking expenses, managing cards, and generating real-time reports |
Reporting | Strong reporting capabilities for financials and budgeting; customizable options | Basic payroll and tax reporting; not as powerful for financial insights | Advanced reporting with real-time analytics, insights into spending, and trend forecasts |
Xero is cloud-based accounting software for small businesses. It offers a comprehensive platform to handle essential accounting tasks, such as invoicing, bank reconciliation, financial reporting, and budgeting. Additionally, Xero includes a payroll feature that simplifies employee compensation by automating tax calculations, direct deposits, and compliance with local regulations.
This seamless integration of payroll and expense management helps businesses streamline operations, improve financial accuracy, and ensure timely payments to employees.
Unique Features Of Xero
Xero Pros And Cons
Xero stands out for its reporting and receipt scanning features. Many users have also appreciated its bank reconciliation, invoice creation, and spending tracking features.
Users have reported that:
That said, users have also shown concerns over its customer support.
A user said:
Another user reported that:
Xero’s inability to cater to growing businesses is another drawback reported by users.
According to a user:
Xero As Compared To Alternatives
Xero’s strengths lie in accounting and inventory management, making it particularly suited for businesses needing multi-currency support, project tracking, and detailed financial reporting. Unlike Gusto, Xero prioritizes financial operations over HR functionalities, making it less ideal for handling payroll complexities and employee benefits.
However, it offers basic payroll features that integrate seamlessly with its accounting tools. Compared to Ramp, Xero focuses more on comprehensive accounting rather than spend management. While Ramp provides real-time expense tracking and corporate card management, Xero delivers tools for project cost tracking, inventory monitoring, and budget planning.
Gusto is a comprehensive online platform that streamlines payroll, benefits, and human resource management for small and growing businesses. The platform offers features such as automated deductions, direct deposit, tax filing, time tracking, and employee onboarding, all accessible through an intuitive interface.
One of Gusto's key strengths is its ability to handle complex payroll calculations, including automated tax filings and compliance with federal, state, and local regulations. The platform also offers an expense management feature, which makes reimbursements easy.
Unique Features Of Gusto
Gusto Pros And Cons
Gusto excels as a time tracking and payroll platform for small businesses with simpler requirements. However, it may not cater to large enterprises.
A user reported that:
Users also appreciate Gusto’s new EOR feature and its ability to manage contractors. However, they have raised concerns over the platform’s ability to process payroll for companies with a larger user base.
Another user said:
Gusto As Compared To Alternatives
Gusto simplifies HR processes with tools for hiring, onboarding, and managing employee benefits. However, it lacks Xero’s robust project tracking and multi-currency accounting, which might be necessary for businesses with international operations.
Compared to Ramp, Gusto is HR-centric and doesn’t provide features like corporate card management or spend analysis. Ramp’s strength lies in managing financial transactions and spend optimization, whereas Gusto’s expertise lies in automating payroll processes and offering employee-centric tools.
Ramp is a finance automation platform that streamlines spend management for startups, small and mid-size businesses, and enterprises. It integrates corporate cards, expense reimbursements, bill payments, and more into a single, user-friendly solution. A key feature of Ramp is its real-time authorization engine, which ensures high uptime and reliability for processing transactions.
The platform automates routine financial tasks, eliminates the need for traditional expense reports, accelerates vendor payments, and enables faster financial closing processes. It also integrates with several accounting and HR platforms, which further enhance its functionality, helping users perform various functions through a single platform.
Unique Features Of Ramp
Ramp Pros And Cons
Ramp’s expense reporting, corporate cards, and integration capabilities make it a reliable platform that can perform various functions. Its ability to manage global expenditure further makes it a reliable option.
According to user reviews:
Ramp As Compared To Alternatives
Ramp caters to businesses of all sizes with its finance automation capabilities. Its integration of corporate cards, real-time expense tracking, and cashback rewards make it stand out from both Xero and Gusto. Compared to Xero, Ramp is less focused on traditional accounting features like project tracking or inventory management but it excels in spend control and automation, appealing to businesses prioritizing efficiency in expense reporting and transaction management.
Choosing between Xero, Gusto, and Ramp depends on your business priorities. Xero is ideal for small businesses focused on accounting and inventory, while Gusto excels in streamlining HR and payroll processes for growing teams. On the other hand, Ramp offers powerful spend management tools suitable for businesses looking to automate financial tasks and control expenses.
By evaluating your organization’s specific needs—whether it's accounting, HR management, or financial automation—you can select the platform that aligns best with your operational goals.