Zoho Books vs Xero ― Which Software Is the Best for You in 2021?

Zoho Books and Xero are equally standard accounting software program however they’ve distinctive options and capabilities and totally different value factors. Finally, your price range and enterprise scenario will decide which one is best for you. In case you are a solopreneur or a freelancer who needs free bill monitoring, or a longtime small enterprise that wants superior stock reporting, go along with Zoho Books. In case you are a small enterprise with many workers to pay, Xero is a extra appropriate alternative.

When to Use Xero


All of Xero’s plans assist limitless customers, making it an excellent alternative for rising small companies. It is a enormous benefit over Zoho Books, the place it’s a must to buy the costliest plan to assist 10 customers. With Xero, you can begin out small with the Early plan, and later improve to the upper plans as you might want to add extra options to your account. Moreover, this system affords full-service payroll by its integration with Gusto, so in case you have many workers to pay, we strongly advocate Xero.

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When to Use Zoho Books

Zoho Books

You may get extra worth from Zoho Books when you’re at the moment utilizing or planning to make use of some other Zoho merchandise. As an illustration, Zoho Books integrates with Zoho CRM that can assist you handle your gross sales, advertising and marketing, and stock in a single place and Zoho Expense to simplify expense reporting. Whereas it’s extra feature-rich than Xero, payroll is restricted to India, California, and Texas. Whereas it’s not a showstopper for Zoho Books, it may be an inconvenience to make use of a 3rd get together in your payroll wants. Nevertheless, by way of stock administration and automation options, Zoho Books stands out—making it one in all our best small business accounting software.

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Let’s see how Zoho Books and Xero stack up towards one another on this at-a-glance comparability.

Zoho Books vs Xero: At a Look

Zoho Books vs Xero: Pricing

Zoho Books and Xero are each reasonably priced with robust options. Nevertheless, not like Zoho pricing plans, Xero consists of limitless customers and limitless monitoring of distributors, clients, and workers in its mid and top-tier plans, and full A/P in all of its plans.

Zoho Books Pricing

Zoho Books is out there in 4 plans with month-to-month charges starting from $0 to $36 monthly. The free plan helps a single consumer and consists of fundamental options, comparable to financial institution reconciliation, expense monitoring, and recurring invoices. The paid plans provide you with entry to superior options, together with gross sales orders and buy orders administration, time monitoring, and budgeting.

  • Free: $0 monthly; consists of one consumer plus one accountant
  • Normal: $12 monthly; consists of three customers
  • Skilled: $24 monthly; consists of 5 customers
  • Premium: $36 monthly; consists of 10 customers

Xero Pricing

Xero affords three packages with costs starting from $11 to $62 monthly. The Early plan is restricted, permitting you to enter as much as 5 payments and ship as much as 20 invoices. If you might want to ship limitless invoices and enter limitless payments, we advocate the Rising and Established plans.

  • Early: $11 monthly
  • Rising: $32 monthly
  • Established: $62 monthly

Takeaway: If in case you have a couple of members in your accounting division, you may go along with Zoho Books. It means that you can ship limitless invoices for $24 monthly, as in comparison with Xero’s $32 monthly. Xero is your solely choice when you want greater than 10 customers.

Zoho Books vs Xero: Options

Each Zoho Books and Xero have a terrific listing of options, however Zoho Books is extra intensive and detailed. Zoho Books comes with options that you would be able to’t discover in Zoho Books, together with automation and workflow guidelines and a consumer portal. Clearly, the most important benefit of Xero over Zoho Books is consumer permissions. You possibly can add as many customers as you need with Xero. Nevertheless, Zoho Books retaliates with flexibility. You possibly can go for add-ons as an alternative of upgrading to a better plan. In the event you want an extra consumer, you may merely pay for the extra consumer as an alternative of switching to a better plan.

Zoho Books Tiered Options

Xero Tiered Options

The place Zoho Books Wins

Workflow Automation

Zoho Books means that you can create and configure workflow guidelines which you’ll be able to’t get from Xero. As an illustration, you may create a workflow to ship estimates robotically to your purchasers. Later, you may replace a customized area when your buyer accepts or declines it.

Financial institution Card/Credit score Card Integration

In the event you choose to pay your payments on-line or with a bank card, you may join your entire financial institution and bank card accounts to Xero. Nevertheless, Xero’s Early plan solely means that you can handle as much as 20 banking transactions whereas all plans in Zoho Books embody limitless transactions. Connecting your financial institution/bank card accounts may be very simple to do in Xero.

Consumer Portal

Zoho Books has a devoted consumer portal which you’ll be able to’t discover in Xero. The consumer portal permits your clients to entry and handle all their transactions, together with accepting estimates and paying invoices.

The place Xero Wins


Xero deeply integrates with Gusto, bringing full-service payroll to purchasers in all 50 states. In the meantime, Zoho Books’ inside integration with Zoho Payroll solely helps payroll in India, California, and Texas. Zoho clients from the opposite states want to make use of a third-party platform like SurePayroll.

Limitless Customers

Xero is without doubt one of the few accounting software program merchandise that doesn’t put a restrict on the variety of customers you can provide entry to your Xero account. You possibly can add as many customers as you need totally free, whereas with Zoho Books, you may solely add as much as 10 customers in the costliest plan.


Not like Zoho Books, which doesn’t embody A/P in its Free and Normal plans, Xero consists of the flexibility to handle payments in all three of their pricing plans. With all Xero plans, you may observe unpaid payments, pay payments and run an in depth A/P growing old report to ensure funds to suppliers are well timed.

Takeaway: Xero beats Zoho Books by way of consumer permissions and payroll, however in relation to time-saving automation options and add-ons, Zoho Books takes the lead.

Zoho Books vs Xero: Ease of Use

Each Zoho Books and Xero have a user-friendly interface and are simple to navigate. They each have an interactive dashboard that you just see as quickly as you log in. This dashboard is customizable and consists of information comparable to account balances, excellent buyer invoices, and excellent vendor payments. Whereas Xero is straightforward to make use of, there are specific elements that may be a problem to arrange when you don’t have an accounting or bookkeeping background.

Zoho Books Ease of Use

Whereas Zoho Books has a properly organized consumer interface that it’s simple to arrange, it’s a bit difficult to navigate by the options as a result of there are some panels which are hidden inside one another. From the dashboard, you will notice essential details about your corporation, together with Complete Receivables, Complete Payables, Money Move, Earnings and Expense, and Your High Bills.

Zoho Books’ Dashboard

Zoho Books’ Dashboard (Supply: Zoho Books)

Xero Ease of Use

Xero is straightforward to arrange and use, even when you don’t have accounting expertise. Once you create your Xero group, you can be greeted by an interactive dashboard containing panels for essential options, together with payments, on-line invoices, and financial institution accounts. You possibly can drag and drop the panels to additional customise them to your wants. Under is a screenshot of Xero’s default dashboard.

Xero’s Dashboard

Xero’s Dashboard

Takeaway: Xero doesn’t have essentially the most user-friendly interface, but it surely’s barely simpler to make use of than Zoho Books. In case you are doing all your books independently, we advocate Xero.

Zoho Books vs Xero: Integrations

One of many largest advantages of utilizing Zoho Books is that it seamlessly integrates with different Zoho merchandise, comparable to Zoho CRM and Zoho Stock. On high of that, it additionally integrates with fee gateways, comparable to PayPal, Stripe, and Authorize.web. Xero has a extra intensive market, integrating with greater than 700 third-party software program. A few of its many integrations embody PayPal, Stripe, HubSpot, Mailchimp, BigCommerce, Shopify, Gusto, WorkflowMax, and simPRO.

Takeaway: In case you are a enterprise proprietor that makes use of a number of totally different apps to handle your corporation, you’ll discover Xero’s ample integrations an enormous bonus. Zoho Books is greatest when you’re seeking to handle your organization inside a single software program setting.

Zoho Books vs Xero: Cellular App

Whereas Zoho Books and Xero’s cell apps are comparable, Zoho Books has the benefit. Whereas Zoho Books has a full-featured cell app, Xero’s cell app solely means that you can create invoices, reconcile financial institution transactions, observe bills, and generate studies. You possibly can obtain Zoho Books and Xero cell accounting apps on Google Play and the App Retailer.

Takeaway: When it comes to cell capabilities, we give the sting to Zoho Books. It’s extra purposeful and full-featured than the Xero cell accounting app.

Zoho Books vs Xero: Assisted Bookkeeping

Zoho Books doesn’t have a devoted in-house staff of bookkeepers, however they supply assisted bookkeeping companies within the type of licensed Zoho Books Advisors. In the event you need assistance to handle your books or your corporation with Zoho Books, you may verify Zoho Books’ listing for the listing of impartial accountants, bookkeepers, and monetary advisors which have earned the Zoho Books Advisor designation.

Xero additionally makes use of third-party applications and companies, to offer assisted bookkeeping to its customers. As an illustration, you may search on-demand entry to knowledgeable bookkeeper by Bookkeeper360.

Takeaway: Zoho Books has a slight benefit over Xero with their Zoho Books Advisor program.

Zoho Books vs Xero: Buyer Help

With regards to customer support, Zoho Books beats Xero fingers down. Not like Xero, Zoho Books affords dwell buyer assist by way of phone or chat in all of its paid packages. If you might want to contact the Xero assist staff, you’ll have to ship an e mail and look forward to a response. The excellent news is that they work 24/7 so the response will probably be lower than 24 hours.

Zoho Books Buyer Service

Zoho Books affords dwell phone and chat assist in all of its paid packages whereas the free plan solely consists of e mail assist. As well as, in addition they have the next assets:

  • Zoho Help Database: A complete assist information that features fundamental navigation directions, keyboard shortcuts, and step-by-step directions in banking, contacts, invoices, consumer portal, bills, and gadgets.
  • Zoho Video Tutorials/Webinar: Within the assist database, additionally, you will discover video tutorials and a webinar on the best way to use Zoho Books.

Xero Buyer Service

Xero doesn’t have the choice to talk to an actual, dwell particular person as you may with Zoho Books. Nevertheless, they do have the Xero Enterprise Assist Middle and Xero College.

  • Xero Help Center: A strong assist middle with video tutorials and step-by-step how-to articles on each fundamental and superior Xero matters.
  • Xero U (University): Xero College consists of video tutorial programs that you would be able to take to learn to use Xero. The matters are damaged down into three consumer sorts: accountants, bookkeepers, and small enterprise house owners.

Takeaway: Zoho Books is the clear winner by way of buyer assist. When you join a paid package deal, you’ll have entry to e mail, voice, and chat assist choices, that are extra dependable than Xero’s customer support.

Backside Line

Zoho Books and Xero have their very own strengths and weaknesses, and the choice comes all the way down to understanding your actual enterprise wants. Select Zoho Books when you solely want a couple of individuals to entry your accounting information, you’re a product-based enterprise that requires superior stock monitoring, otherwise you’re at the moment utilizing or planning to make use of different Zoho merchandise. Decide Xero in case you have greater than 10 individuals in your accounting division, or you might have many workers to pay.

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