Managing payroll alongside business accounting can be challenging for organizations, especially as they grow and evolve. The best-fit software can streamline these processes, ensuring accuracy and efficiency. Gusto and Wave are two popular platforms that cater to different business needs, each offering unique features tailored to various operational requirements.  

In this blog, we will compare Gusto vs Wave, examining their strengths in payroll processing and accounting management. By analyzing key functionalities, pricing structures, and integration capabilities, we aim to help you make an informed decision on which platform aligns best with your business goals.  

Gusto Vs Wave: At A Glance

Features 

Gusto 

Wave 

Payroll Management 

Automates payroll processing, taxes, and filings; unlimited payroll runs, next-day deposits 

Simplifies payroll with direct deposits, tax payments, and automatic journal entries 

Integrations 

Over 150 integrations with tools like Asana, QuickBooks, and Slack 

Over 1,000 integrations via Zapier, connecting apps like MailChimp, HubSpot, and Google Docs 

User-Friendly Interface 

Streamlined navigation for payroll and human resource (HR) tasks 

Simplifies financial management with an intuitive dashboard for small business owners 

Mobile Application 

Employee-focused with time tracking, tax tools, and scheduling 

Focused on invoicing, payment acceptance, and financial management 

Pricing 

Starts at $40/month plus $6/month/person offering payroll and HR tools 

Starts at $0, offering basic features 

What Is Gusto?

Gusto HR is a cloud-based human resource and payroll management software designed specifically for small to medium-sized businesses that cater to various industries like real estate, healthcare, manufacturing, and more. This comprehensive software offers a variety of features, like payroll management, benefits administration, and talent management.

It provides a seamless experience that simplifies tedious processes, enabling employers to effectively manage employee onboarding, payroll processing, and compliance with labor regulations.  

Unique Features Of Gusto 

  • Gusto Global - Gusto brings together the U. S. and global teams, eliminating double data entry and the need for multiple software options. Onboard and pay contractors in 120+ countries with just a few clicks. Benefit from built-in compliance management to ensure adherence to local employment laws, reducing risk from onboarding to offboarding 
  • Reporting - This feature offers customizable reports, anonymous team surveys, and compliance alerts to improve business transparency. Easily gather employee feedback through anonymous monthly surveys and create tailored report templates to quickly analyze essential data, empowering better decision-making and stronger team support 
  • Talent Management - The software provides performance evaluations and career development resources to help employees stay motivated, grow, and retain top talent within the company. Gusto helps employees engage in proactive feedback and discover growth opportunities with meaningful guidance, simplified through automated workflows for actionable insights 

Pros And Cons Of Gusto

Pros

  • Gusto provides clear income, tax, and hours breakdowns for easy tracking 
  • Complete payroll in under 2 minutes, with accurate time tracking 
  • The user-friendly interface helps the user easily maneuver the software 

Cons 

  • Limited customization options for employee benefits packages, which may not suit every organization 
  • It would be great if Gusto could provide helpful reminders for important dates on the calendar to ensure nothing is missed 

What Is Wave?

Wave is a cloud-based accounting software designed for small businesses, freelancers, and entrepreneurs. It offers a variety of features that streamline financial management, including invoicing, expense tracking, payroll, and payment processing. By automating routine accounting tasks, Wave software minimizes common pain points such as manual data entry and tracking payments, allowing users to focus on growing their businesses.  

Unique Features Of Wave 

  • Templates - Wave provides a diverse selection of customizable templates. It offers invoicing templates tailored for industries like consulting, legal, and marketing, and estimating templates for fields such as plumbing, landscaping, and HVAC. Available in Word, Excel, PDF, Google Docs, and Google Sheets, these templates streamline processes, enabling users to create professional documents efficiently while saving time 
  • Payroll Calculator - Wave’s payroll tax calculator estimates the true cost of hiring an employee, helping businesses prepare for year-end expenses. The time clock calculator determines employees' weekly hours, ensuring smooth payroll processing. Additionally, the pay stub generator enables users to create professional pay stubs by entering company and employee details, streamlining payroll documentation 
  • Accounting - This feature simplifies cash flow management and tax preparation with accurate reports and a smart dashboard. Users can securely connect unlimited bank accounts, track invoices by due date, and organize income, expenses, and payments for bookkeeping. Moreover, it lets users view month-to-month or year-to-year comparisons to identify cash flow trends and access categorized financial data 

Pros And Cons Of Wave 

Pros 

  • Provides control over payments, expenses, and procurement for efficiency 
  • Manage invoices and recurring payments and monitor profitability through the dashboard 
  • Simplifies employee payroll processing and makes tracking business expenses easy 

Cons 

  • AR/AP invoicing features customization is somehow limited 
  • Transactions are only accessible online, not directly within the app 

Gusto Vs Wave Key Features Comparison

Payroll Managment

Cloud-based EMRs provide remote access to patient records, enhancing mobility and decision-making

Subscription-based models offer financial flexibility and cost efficiency

Advanced encryption and compliance measures safeguard sensitive patient data

Seamless interoperability enables smooth data sharing across systems and teams

Automatic updates and maintenance reduce IT burden and ensure system reliability

Winner: The first round goes to Gusto as it offers comprehensive automation of payroll taxes, filings, and extensive HR capabilities.

Integrations

With over 150 integrations, Gusto connects seamlessly with popular tools like Asana, QuickBooks, and Slack, enhancing your business operations. It caters to various categories, including accounting, collaboration, hiring and onboarding, performance management, and compliance. This extensive integration network streamlines workflows and improves efficiency across all departments.

Wave connects effortlessly with Zapier, offering over 1,000 connections to automate workflows with popular applications like MailChimp, HubSpot, and Google Docs. Users can create Zaps to automatically transfer data between apps, enhancing productivity by reducing manual tasks and allowing more focus on strategic activities within their business.

Winner: In terms of sheer number, Wave wins with over 1,000 software integrations via Zapier, while Gusto’s tailored categories offer specialized efficiency with over 150 integrations.

User-Friendly Interface

Gusto features an intuitive interface designed to simplify businesses' payroll and HR operations. With its navigation, users can easily add employee details, run payroll in just a few clicks, and access essential tools without confusion. This streamlined experience reduces errors and enhances overall efficiency for teams.

Wave features a user-friendly dashboard designed specifically for small business owners. This intuitive interface simplifies managing finances, allowing users to easily create invoices, track payments, and monitor cash flow. With easy navigation and organization, Wave helps reduce stress during tax season and enhances overall financial management.

Winner: We have a draw here as Gusto excels in simplifying payroll and HR tasks, while Wave is tailored for small business financial management. Each software provides a streamlined, intuitive interface designed to enhance productivity and reduce operational stress.

Mobile Application

With the Gusto mobile app, employees can easily manage their profiles, view payday insights, edit tax elections, and access financial tools, all from their devices. The app offers a range of features such as time tracking, scheduling, paid time off, paycheck splitter, tax documents, and personal details, ensuring a smooth and efficient payroll experience.

When it comes to the mobile application for Wave, it allows users to invoice in any currency and features an intuitive dashboard to stay on top of business finances. Users can accept credit cards and bank payments, personalize invoices with professional templates, and automate accounting integration, ensuring seamless financial management on the go.

Winner: This round goes to Gusto due to its employee-centric mobile app that offers time tracking, tax tools, and scheduling, while Wave focuses on invoicing and payments.

Pricing

Gusto offers flexible pricing plans to meet varying needs. The Simple plan costs $40/month ($6/month/person) and includes full-service payroll, unlimited payroll runs, and essential HR tools. For more advanced features, the Plus plan costs $80/month ($12/month/person), and the Premium plan costs $180/month ($22/month/person). Both these plans offer features like multi-state payroll, next-day direct deposits, and dedicated support, catering specifically to the requirements of growing organizations.

Wave offers flexible pricing plans tailored for small businesses. The STARTER Plan costs $0 offering unlimited estimates, invoices, and bookkeeping records. The PRO Plan is priced at $16/month, offering access to features such as unlimited invoicing, automated bank transaction imports, and discounted online payment processing. Payroll services are available as an add-on starting from $20/month.

Winner: The last round ends in a tie. Wave offers a free Starter Plan with a $20 add-on for payroll, while Gusto’s starting price includes robust HR and payroll features. So, it all comes down to business needs and priorities.

The Bottom Line: Which HR Software Is Right For You?

The choice between Gusto vs Wave ultimately depends on your business goals and operational priorities. Gusto shines with its effective payroll management, comprehensive HR tools, and employee-centric features, making it an excellent choice for businesses that need a complete HR solution.

On the other hand, Wave is primarily accounting software offering affordability with its free Starter Plan and simplicity in financial management. It easily integrates with accounting features, making it ideal for freelancers and small businesses with straightforward needs.

Both platforms bring unique strengths to the table, so the right decision comes down to your organization’s requirements and growth aspirations.