Accounting & Finance · head to head
Zoho Books vs Avalara
Zoho Books
Accounting & Finance
Simple, smart accounting software for growing businesses
- From
- Free
- Rated
- -
The short version
- Only Zoho Books has a free tier, so it costs nothing to try first.
- Each has a real cost: Zoho Books payroll only available in Texas and California, limiting US usefulness; Avalara plans start at $699 per state per year, so multi-state sellers multiply that figure rather than paying one subscription
- They diverge on capability: Zoho Books covers Invoicing, Avalara covers Tax calculation.
Where they differ
Only the attributes on which Zoho Books and Avalara actually diverge.
| Attribute | Zoho Books | Avalara |
|---|---|---|
| Starting price | Free | $29/month |
| Pricing model | Unknown | subscription |
| Free tier | Yes | No |
| Platforms | Web, iOS, Android | Web, Api |
| Founded | 1996 | 2004 |
Identical on both: user rating (Not yet rated), category (Accounting & Finance).
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 Zoho Books
- Invoicing
- Expense tracking
- Bank reconciliation
- Financial reports
- Tax compliance
- Zoho CRM
- PayPal
- Stripe
Only in Avalara
- Tax calculation
- Returns filing
- Exemption management
- Document management
- Real-time rates
- QuickBooks
- NetSuite
- Shopify
Both cover
- SOC 2
- GDPR
- Web support
What people use each for
The jobs each tool is most often brought in to do.
Zoho Books
- Invoicingnot Avalara
- Expense managementnot Avalara
- Tax preparationnot Avalara
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
Where each one falls short
Documented limitations, not opinions. Every one is a constraint you would hit in normal use.
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
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
Pricing, plan by plan
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
Avalara
$29/month- AvaTax$50/month
- Tax calculation
- Exemption certificates
- Returns filing
Which should you pick?
Choose Zoho Books if
- You need invoicing.
- You want to start without paying.
- You work on Web, iOS, Android.
- You also want expense tracking.
Choose Avalara if
- You need tax calculation.
- You work on Web, Api.
- You also want returns filing.
Questions people ask
- Is Zoho Books or Avalara better?
- Neither clearly leads. Zoho Books starts at Free and Avalara at $29/month, and user ratings are close enough to be indistinguishable. Choose on capability and platform support.
- Which is cheaper, Zoho Books or Avalara?
- Zoho Books has a free tier; the other does not. Paid plans start at Free for Zoho Books and $29/month for Avalara.
- Does Zoho Books or Avalara run on more platforms?
- Zoho Books runs on Web, iOS, Android. Avalara runs on Web, Api.
- 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 Zoho Books best used for?
- Zoho Books is most often used for invoicing, expense management, tax preparation. Of those, invoicing and expense management are not what Avalara is typically brought in for.
- What can Zoho Books do that Avalara cannot?
- Zoho Books covers Invoicing, Expense tracking, Bank reconciliation, Financial reports. Avalara covers Tax calculation, Returns filing, Exemption management, Document management. 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.
SourceZoho 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.
SourceZoho 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