Gusto vs QuickBooks Online

We have used QuickBooks Payroll amongst many other services, and Gusto is the first one that actually feels like a modern and enjoyable experience.

We figured that going with QBO Payroll was a no-brainer, as our accounting and payroll would be in the same place, right? Wrong. We had nothing but frustrations and realized that it was essentially a totally separate team and product from QBO.

Since switching to Gusto about 4 years back, we've been happy as a clam, highly recommend. Oh, it also integrates natively with QuickBooks Online beautifully 🔥

While Gusto says they offer Time Tracking, it's incredibly barebones, and more for just general time sheet tracking for employees, nowhere near the scale of a tool like Harvest or Toggl.

We find that teams based in the US tend to use QuickBooks Online, and businesses outside of the US tend to lean more toward Xero.

This is important because it means that the features QBO is building is more focused on things like US Sales Tax laws, while Xero may have more accounting features helpful outside of the US especially.

Also, accountants inside of the US are often more proficient with QBO as compared to Xero (although they should be familiar with both).

P.S. We highly recommend QBO over QuickBooks Desktop because of their robust API—you're not going to be integrating QuickBooks Desktop easily with anything.

QBO helps companies manage core financial tasks like invoicing, expense tracking, bank reconciliation, financial reporting, and tax preparation.

This is one of those areas that it makes sense that they cover, but you can tell it was an add-on versus being their core service. Payroll is boring, and hey, QBO does the job, it's just not a straightforward user-experience, and let's just say we used it for 4 years before switching to Gusto, and there's not a single bone in my body that misses QBO for payroll. It was also incredibly painful closing it down with them, reporting to all the Department of Labor agencies, and everything. Save yourself the time and skip out on QBO for Payroll.

If you compare QuickBooks Online to any of the best time tracking software on the market, you'll see just how wildly barebones, slow, and underwhelming it is. Even just the process of logging into QBO feels like you're pushing a boulder uphill, now you need to do it any time you track software? No thanks, I'll pass.

They designed it more to be for people who just need to submit their time one-per-day or once-per-week, they are building to check a box, not to be leading the time tracking space.