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Avalara vs Zoho Books

Avalara logo

Avalara

Software

Tax compliance done right

From
$29/month
Rated
-
Full reviewWebsite
Zoho Books logo

Zoho Books

Software

Simple, smart accounting software for growing businesses

From
Free
Rated
-
Full reviewWebsite

The short version

  • Only Zoho Books has a free tier, so it costs nothing to try first.
  • Each has a real cost: Avalara plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription; Zoho Books payroll only available in Texas and California, limiting US usefulness
  • They diverge on capability: Avalara covers Tax calculation, Zoho Books covers Invoicing.

Where they differ

Only the attributes on which Avalara and Zoho Books actually diverge.

Attributes where Avalara and Zoho Books differ
AttributeAvalaraZoho Books
Starting price$29/monthFree
Pricing modelsubscriptionUnknown
Free tierNoYes
PlatformsWeb, ApiWeb, iOS, Android
Founded20041996

Identical on both: user rating (Not yet rated), category (Unknown).

What each one covers

Drawn from each product's published feature list. An absence here means we hold no record of it - not that the product lacks it.

Only in Avalara

  • Tax calculation
  • Returns filing
  • Exemption management
  • Document management
  • Real-time rates
  • QuickBooks
  • NetSuite
  • Shopify

Only in Zoho Books

  • Invoicing
  • Expense tracking
  • Bank reconciliation
  • Financial reports
  • Tax compliance
  • Zoho CRM
  • PayPal
  • Stripe

Both cover

  • SOC 2
  • GDPR
  • Web support

What people use each for

The jobs each tool is most often brought in to do.

Avalara

  • Real-time sales tax calculation at checkoutnot Zoho Books
  • Multi-state and multi-jurisdiction tax determinationnot Zoho Books
  • VAT, lodging, communications and excise tax calculationnot Zoho Books
  • Feeding tax results into an ERP or ecommerce platform through the APInot Zoho Books

Zoho Books

  • Invoicingnot Avalara
  • Expense managementnot Avalara
  • Tax preparationnot Avalara

Where each one falls short

Documented limitations, not opinions. Every one is a constraint you would hit in normal use.

Avalara

  • Plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription
  • Billed by transaction, where one API call is one transaction, so cost tracks invoice volume
  • The free option is limited to the Streamlined Sales Tax programme, in up to 25 states and only for qualifying businesses

Zoho Books

  • Payroll only available in Texas and California, limiting US usefulness
  • Limited access to historical financial data compared to competitors
  • Customer support is slow with long response times and frustrating workarounds
  • Fewer integrations than QuickBooks Online and Xero
  • User limit restrictions (1-15 depending on plan) compared to Xero's unlimited users
  • Occasional inaccuracies in automatic exchange rate updates for international transactions

Pricing, plan by plan

Avalara

$29/month
  • AvaTax$50/month
    • Tax calculation
    • Exemption certificates
    • Returns filing

Zoho Books

Free
  • FreeFree
    • 1 user + accountant
    • Unlimited invoices
  • Standard$20/month
    • 3 users
    • Core accounting
  • Professional$60/month
    • 5 users
    • Advanced reporting
  • Premium$120/month
    • 10 users
    • Inventory management

Which should you pick?

Choose Avalara if

  • You need tax calculation.
  • You work on Web, Api.
  • You also want returns filing.
Avalara review

Choose Zoho Books if

  • You need invoicing.
  • You want to start without paying.
  • You work on Web, iOS, Android.
  • You also want expense tracking.
Zoho Books review

Questions people ask

Is Avalara or Zoho Books better?
Neither clearly leads. Avalara starts at $29/month and Zoho Books at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Avalara or Zoho Books?
Zoho Books has a free tier; the other does not. Paid plans start at $29/month for Avalara and Free for Zoho Books.
Does Avalara or Zoho Books run on more platforms?
Avalara runs on Web, Api. Zoho Books runs on Web, iOS, Android.
Can I use Zoho Books for free?
Yes. Zoho Books has a free tier, so you can try it without paying. Avalara starts at $29/month.
What is Avalara best used for?
Avalara is most often used for real-time sales tax calculation at checkout, multi-state and multi-jurisdiction tax determination, vat, lodging, communications and excise tax calculation, feeding tax results into an erp or ecommerce platform through the api. Of those, real-time sales tax calculation at checkout and multi-state and multi-jurisdiction tax determination are not what Zoho Books is typically brought in for.
What can Avalara do that Zoho Books cannot?
Avalara covers Tax calculation, Returns filing, Exemption management, Document management. Zoho Books covers Invoicing, Expense tracking, Bank reconciliation, Financial reports. Both handle SOC 2, GDPR, Web support.

Answered from the vendors’ own pages

Zoho Books: Does Zoho Books support payroll?

Zoho Books offers limited payroll integration available only in Texas and California currently. Outside these states, users must use separate payroll software.

Source
Zoho Books: How many users can access one account?

User limits vary by plan: Free tier (1 user + accountant), Standard (3 users), Professional (5 users), Premium (10 users), Elite (15 users). Each business requires separate subscription.

Source
Zoho Books: What integrations does Zoho Books support?

Zoho Books integrates with Shopify, WooCommerce, Razorpay, PayPal, Stripe, Salesforce, Google Sheets, and 500+ apps via Zapier. It integrates with other Zoho products like Zoho Inventory and Zoho Projects.

Source
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