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Xero vs Zoho Books

Xero logo

Xero

All industries

Beautiful accounting software

From
$13/month
Rated
-
Full reviewWebsite
Zoho Books logo

Zoho Books

Accounting & Finance

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: Xero the Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending; Zoho Books payroll only available in Texas and California, limiting US usefulness
  • They diverge on capability: Xero covers Bill payment, Zoho Books covers Expense tracking.

Where they differ

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

Attributes where Xero and Zoho Books differ
AttributeXeroZoho Books
Starting price$13/monthFree
Pricing modelsubscriptionUnknown
Free tierNoYes
PlatformsWeb, Ios, Android, ApiWeb, iOS, Android
CategoryAll industriesAccounting & Finance
Founded20061996

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

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 Xero

  • Bill payment
  • Expense claims
  • Financial reporting
  • Inventory tracking
  • Project tracking
  • Mobile apps
  • Square
  • Shopify

Only in Zoho Books

  • Expense tracking
  • Financial reports
  • Tax compliance
  • Zoho CRM
  • SOC 2
  • GDPR
  • Web support
  • Ios support

Both cover

  • Bank reconciliation
  • Invoicing
  • Stripe
  • PayPal

What people use each for

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

Xero

  • Small business bookkeeping, invoicing and bank reconciliationnot Zoho Books
  • Bill payment and purchase order managementnot Zoho Books
  • Sharing books with an accountant or bookkeepernot Zoho Books

Zoho Books

  • Invoicingnot Xero
  • Expense managementnot Xero
  • Tax preparationnot Xero

Where each one falls short

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

Xero

  • The Early plan caps you at 20 invoices and 5 bills per month, and the invoice limit counts both approving and sending
  • Invoices created by connected app partners count against the Early plan invoice limit
  • Multiple currencies, project time and cost tracking, employee expense and mileage claims and industry benchmarking are restricted to the top Established plan at $90 per month
  • Cash flow forecasting is capped at 30 days on Early and 60 days on Growing, with 180 days only on Established
  • Payroll is not included in any plan and costs an extra $36 a month plus $6 per employee or contractor through Gusto
  • Inventory Plus is a paid optional add-on rather than part of any plan
  • The advertised 90% off applies only to the first 6 months, after which the regular $25, $55 or $90 monthly price auto-renews
  • The introductory discount excludes add-ons, usage charges and payment fees
  • Payment fees apply to online invoice payments and to bill payments other than standard domestic ACH, and are billed on top of the subscription
  • Subscriptions are billed monthly with no annual payment option, and after upgrading you must wait one month before downgrading to a cheaper plan
  • Xero states subscription prices are increasing from October 1, 2026

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

Xero

$13/month
  • Early$13/month
    • Send 20 invoices
    • Enter 5 bills
    • Reconcile bank transactions
  • Growing$37/month
    • Unlimited invoices & bills
    • Bulk reconcile transactions
    • Short-term cash flow
  • Established$70/month
    • Everything in Growing
    • Use multiple currencies
    • Track projects

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 Xero if

  • You need bill payment.
  • You work on Web, Ios, Android, Api.
  • You also want expense claims.
Xero review

Choose Zoho Books if

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

Questions people ask

Is Xero or Zoho Books better?
Neither clearly leads. Xero starts at $13/month and Zoho Books at Free, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
Which is cheaper, Xero or Zoho Books?
Zoho Books has a free tier; the other does not. Paid plans start at $13/month for Xero and Free for Zoho Books.
Does Xero or Zoho Books run on more platforms?
Xero runs on Web, Ios, Android, 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. Xero starts at $13/month.
What is Xero best used for?
Xero is most often used for small business bookkeeping, invoicing and bank reconciliation, bill payment and purchase order management, sharing books with an accountant or bookkeeper. Of those, small business bookkeeping, invoicing and bank reconciliation and bill payment and purchase order management are not what Zoho Books is typically brought in for.
What can Xero do that Zoho Books cannot?
Xero covers Bill payment, Expense claims, Financial reporting, Inventory tracking. Zoho Books covers Expense tracking, Financial reports, Tax compliance, Zoho CRM. Both handle Bank reconciliation, Invoicing, Stripe, PayPal.

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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