In the comparison of Zoho Books Vs Xero, Zoho Books offers better automation features, while Xero excels in scalability and advanced accounting tools for growing businesses.
When it comes to choosing the right accounting software, small businesses are often torn between the two giants: Zoho Books and Xero. Both platforms are powerful, feature-rich, and designed to simplify financial management for businesses. However, the ideal choice depends on your specific needs, whether it’s ease of use, integrations, pricing, or advanced features. In this article, we’ll dive into a detailed comparison of Zoho Books vs Xero, covering their strengths, weaknesses, and key differentiators to help you decide the best fit for your business.
Key Highlights of the Comparison
- Zoho Books stands out for its mobile app, advanced inventory management, and flexible pricing tiers.
- Xero is better suited for businesses with large accounting teams, offering unlimited users and excellent project accounting features.
- Both tools integrate seamlessly with third-party apps and provide essential accounting tools like invoicing and expense tracking.
Introduction to Zoho Books and Xero
Zoho Books is an ideal solution for small businesses seeking an affordable and comprehensive accounting platform with advanced features such as LIFO inventory tracking and real-time shipment tracking.
On the other hand, Xero caters to businesses requiring unlimited users, advanced fixed asset management, and robust reporting tools, making it a popular choice among larger teams.
Comparison at a Glance
| Feature | Zoho Books | Xero |
|---|---|---|
| Pricing | $0–$275/month | $20–$80/month |
| Users | 1–15 | Unlimited |
| Free Trial | 14 days | 30 days |
| Inventory Tracking | Advanced (LIFO, FIFO, Serial Tracking) | Basic (FIFO only) |
| Mobile App | Best-in-class features | Limited features |
| Customer Support | Phone, live chat, email | Email only |
| Assisted Bookkeeping | Limited network | Large network |
1. Use Cases for Zoho Books and Xero
Best for Small Businesses
- Zoho Books: Perfect for small businesses with less than $50,000 annual revenue, thanks to its free plan.
- Xero: Best for growing teams needing unlimited users and fixed asset tracking.
Niche Scenarios
- Product-based businesses benefit from Zoho Books’ advanced inventory management tools.
- Service-oriented businesses may prefer Xero for its superior project accounting.
2. Pricing: Xero Takes the Lead
Pricing is a critical factor for small businesses. Xero’s affordability and unlimited users make it an attractive choice, especially for growing teams.
Zoho Books Pricing
- Free plan: $0/month for businesses with <$50,000 annual revenue (1 user).
- Paid plans: Start at $20/month, scaling to $275/month.
Xero Pricing
- Early plan: $20/month (limited features).
- Growing and Established plans: $47–$80/month with unlimited users.
While Zoho Books offers more tiers for scalability, Xero’s unlimited user model at lower costs makes it the winner in pricing.
3. Features: Zoho Books Takes the Spotlight
Both platforms offer comprehensive features, but Zoho Books edges ahead with its advanced inventory tools and best-in-class mobile app.
Unique Features of Zoho Books
- LIFO and FIFO inventory valuation methods.
- Serial number, batch, and shipment tracking for product-based businesses.
- Integration with Zoho One suite for seamless business management.
Key Advantages of Xero
- Fixed asset tracking for businesses with large inventories.
- Detailed actual vs. estimated project accounting.
Shared Features
Both platforms support:
- Customizable invoices.
- Expense tracking.
- Bank reconciliation.
4. Ease of Use: Zoho Books Outshines
While both platforms have a steep learning curve, Zoho Books stands out with its:
- Customizable dashboards tailored to user preferences.
- Assisted onboarding with phone support.
- Detailed setup checklist for new users.
5. Integration Capabilities: A Tie
Zoho Books Integrations
Zoho Books integrates seamlessly with the Zoho ecosystem, including Zoho CRM and Zoho Inventory, making it ideal for businesses already using Zoho tools.
Xero Integrations
Xero’s app marketplace boasts over 700 third-party integrations, covering tools like HubSpot, Shopify, and Gusto.
6. Mobile App: Zoho Books Wins Big
Zoho Books’ mobile app allows users to:
- Send invoices.
- Enter bills and payments.
- Assign expenses to customers or projects.
- View detailed reports.
Xero’s app, while functional, is limited to basic tasks such as sending invoices and capturing receipts.
7. Assisted Bookkeeping: Xero Leads
Xero offers a network of certified bookkeepers and access to services like Bookkeeper360. Zoho Books lacks an in-house bookkeeping network but supports independent Zoho Advisors.
8. Customer Support: Zoho Books Takes the Crown
Zoho Books offers robust support through:
- Phone and live chat.
- Comprehensive help database and video tutorials.
In contrast, Xero relies solely on email support, which might delay issue resolution.
FAQs About Zoho Books Vs Xero
1. What makes Zoho Books unique?
Zoho Books excels in inventory management, offering advanced features like serial and batch tracking, which are absent in many competitors.
2. Does Xero have a mobile app?
Yes, but it offers limited features compared to Zoho Books, focusing on basic invoicing and receipt capturing.
3. Is Zoho Books free?
Yes, Zoho Books has a free plan for businesses earning less than $50,000 annually.
4. Which software is better for large teams?
Xero is better suited for large teams, as all plans include unlimited users.
5. How does customer support compare between the two?
Zoho Books wins with live chat, phone support, and a more extensive help database. Xero only offers email support.
6. Which is more cost-effective?
For smaller teams, Zoho Books offers better scalability. For larger teams, Xero’s unlimited user plans are more cost-effective.
7. Can I track inventory with Xero?
Yes, but Xero only supports FIFO inventory valuation, unlike Zoho Books, which also offers LIFO.
8. Does Xero offer advanced project accounting?
Yes, Xero excels in project accounting, offering actual vs. estimated cost comparisons.
Bottom Line: Which Software Wins?
In the battle of Zoho Books vs Xero, the winner depends on your business needs:
- Choose Zoho Books if you need advanced inventory features, a robust mobile app, or are already in the Zoho ecosystem.
- Pick Xero if you require unlimited users, advanced fixed asset management, and extensive third-party integrations.
Each platform offers unique benefits, making them excellent choices for small businesses at different stages of growth.
