Xero vs Zoho Books: Which Accounting Software in 2025?

by | Last updated May 19, 2025

Winner
Xero Best
9.0
  • Account Dashboard
  • Invoice Template
  • Advanced Accounting
  • Business Snapshot
  • Automate Bill Entry
  • Free trial available
  • Paid Plans from $2.90/month
Runner Up
zoho books
6.5
  • Invoicing
  • Sales Orders
  • Bills
  • Zoho Ecosystem
  • Smart Automations
  • Free trial available
  • Paid Plans from $10/month
Xero vs Zoho Books

Struggling to keep track of your business money?

It can be a real headache.

Choosing the right accounting software feels like a big decision.

Two popular names you’ve probably heard are Xero vs Zoho Books.

This article dives into a straightforward comparison to help you decide. 

Overview

We’ve taken a close look at both Xero and Zoho Books.

Putting them through their paces with typical small business tasks.

Our hands-on testing explored everything from invoicing and expense tracking to financial reporting. 

xero CTA

Join 2 million+ businesses using Xero accounting software. Explore its powerful invoicing features!

9out of 10

Pricing: It has a free trial. paid plan starts at $2.90/month.

Key Features:

  • Invoicing
  • Bank Reconciliation
  • Reporting
Zoho Books cta

Harness the power of your financial data. Unlock key insights with your Zoho Books data today.

6.5out of 10

Pricing: It has a free trial. The premium plan starts at $10/month.

Key Features:

  • Invoicing
  • Expense Tracking
  • Customer Portal

What is Xero?

So, Xero, huh? It’s a big name in the accounting world.

Lots of folks use it to manage their business finances online.

Think of it as your digital bookkeeper.

It helps you keep track of invoices, bills, and bank transactions all in one place. It’s pretty handy!

Also, explore our favorite Xero alternatives…

xero CTA
Xero
9.0

Join 2 million+ businesses using Xero accounting software. Explore its powerful invoicing features now!

Key Benefits

  • Automatically imports daily bank transactions.
  • Send professional invoices and get paid faster.
  • Run over 50 types of financial reports.
  • Connect with over 1000 other business apps.

Pricing

  • Starter: $2.90
  • Standard: $4.60
  • Premium: $6.90
xero pricing

Pros

  • Cloud-based accessibility
  • Automated bank feeds
  • Extensive integrations
  • Robust reporting
  • Strong security

Cons

  • Limited inventory features
  • Occasional customer support issues
  • The learning curve for advanced features

What is Zoho Books?

Okay, let’s talk about Zoho Books.

It’s another popular choice for business owners.

This software is part of a bigger family of Zoho apps. So, if you already use other Zoho products.

Also, explore our favorite Zoho Books alternatives…

Zoho Books cta
Zoho Books
6.5

Harness the power of your financial data. Unlock key insights with your Zoho Books data today.

Key Benefits

Zoho Books shines with its 5 key strengths:

  • It smoothly connects with over 40 other Zoho apps.
  • You can send professional invoices in just a few clicks.
  • It helps you track all the money coming in and going out.
  • Collaborating with your team is super easy.
  • Their reports give you clear insights into your business health.

Pricing

Zoho Books has different plans to fit different needs:

  • Free: $0/month
  • Standard: $10/month
  • Professional: $20/month
  • Premium: $30/month
Zoho Books pricing

Pros

  • It works well with other Zoho apps.
  • Making invoices is really fast.
  • Tracking money is quite simple.
  • Teamwork feels very smooth.
  • Reports are easy to understand.

Cons

  • The basic plan has limited users.
  • Some advanced features cost extra.
  • It might feel complex at first.

What is Feature Comparison

Choosing between Zoho Books and Xero involves a detailed look at what each brings to the table.

Let’s break down their key features.

Comparing how Zoho Books and Xero handle crucial aspects of business accounting to help you choose the best accounting software for your business.

1. Cloud-Based Accounting

  • Xero: Xero offers a robust cloud-based accounting platform. This means you can access your financial data from everywhere with an internet connection, & collaboration with your team and advisors becomes seamless.
  • Zoho Books: Zoho Books also provides cloud-based accounting software. This allows for real-time permission to your financial information across various devices, enhancing flexibility and convenience.
xero business snapshot

2. Invoicing and Transaction Management

  • Xero: Xero provides user-friendly tools for creating and sending professional invoices. Managing transactions, including sales and purchases, is straightforward, helping you keep a clear record of your business activities.
  • Zoho Books: Using Zoho Books, you can easily generate customized invoices and efficiently manage your business’s financial transactions. It streamlines the process of tracking income & expenses.

3. Bank Reconciliation

  • Xero: Xero offers efficient bank reconciliation features. It allows you to connect your bank accounts and automatically match transactions, saving you significant time in ensuring your records are accurate.
  • Zoho Books: Zoho Books also provides bank reconciliation tools, enabling you to link your bank feeds and reconcile transactions to maintain accurate financial statements.

4. Reporting and Financial Statements

  • Xero: Xero provides a wide range of customizable reports, including benefits & loss statements, balance sheets, & cash flow statements. These reports offer valuable insights into your business’s financial health.
  • Zoho Books: Using Zoho Books, you can generate various financial reports, such as profit and loss statements, to understand your business performance. These reports help in making informed decisions.

5. Integrations

  • Xero: Xero offers a vast marketplace with integrations for numerous third-party applications, including payment gateways and CRM systems like Zoho CRM. This allows you to connect Xero with other tools you use for your business needs.
  • Zoho Books: Zoho Books integrates seamlessly with other Zoho applications and offers a good selection of integrations with other business software, including various payment gateways, expanding its functionality.
Zoho Books invoices loop

6. User Experience and Ease of Use

  • Xero: While powerful, some users find Xero’s interface slightly less intuitive initially. However, once you get acquainted with the system, it offers a comprehensive set of features.
  • Zoho Books: Zoho Books is often praised for its ease of use and clean interface, making it relatively simple for new users to navigate and manage their accounting needs.

7. Time Tracking

  • Xero: Xero lacks built-in time tracking features. If you need to track billable hours, you’ll typically need to integrate Xero with a separate time-tracking app from their extensive marketplace.
  • Zoho Books: Zoho Books also offers integrated time-tracking features. This allows you and your team to log billable hours directly within the accounting platform, making it easier to invoice clients for your time and manage project costs. Zoho Books also offers features like project accounting that work seamlessly with time tracking.

What to Look For When Choosing Accounting Software?

Here’s a quick checklist:

  • Scalability: Can it grow with your business?
  • Specific needs: Does it handle your industry’s unique requirements?
  • Budget: Does the per month cost fit your financial plan?
  • Support: What kind of help is available if you run into issues?
  • Security: How well is your financial data protected?
  • Mobile access: Can you manage things on the go?
  • Reporting depth: Does it offer the insights you truly need?
  • Integrations: Will it connect with your other essential business tools?
  • Ease of learning: Is it user-friendly for you and your team?
  • Free trial: Can you test it out before committing?

Final Verdict 

Choosing between Zoho Books vs Xero?

Both Zoho Books and Xero offer great accounting features for small teams or startups. 

Xero could be better. It has more integrations.

We’ve tested both accounting software options carefully.

Many small businesses want solid, basic accounting that can grow.

Zoho Books provides a cost-effective solution. It’s an easy way to start using accounting software.

More of Xero

  • Xero vs Puzzle IO: Puzzle IO excels with AI-driven insights for proactive financial management, unlike Xero’s broader scope.
  • Xero vs Dext: Dext automates receipt and invoice data extraction with AI, streamlining bookkeeping more than Xero alone.
  • Xero vs Synder: Synder simplifies syncing sales data from various platforms into Xero, focusing on e-commerce transactions.
  • Xero vs Easy Month End: Easy Month End streamlines the financial close process, providing enhanced month-end reporting, unlike standard Xero.
  • Xero vs Docyt: Docyt offers budgeting and forecasting tools tailored for specific industries, distinct from Xero’s general accounting.
  • Xero vs RefreshMe: I don’t have enough specific information on “RefreshMe” to provide a detailed comparison with Xero.
  • Xero vs Sage: Sage emphasizes strong compliance features, while Xero delivers a modern interface and extensive integrations.
  • Xero vs Wave: Wave offers a free accounting option for small businesses, whereas Xero provides more advanced features for scaling.
  • Xero vs Quicken: Quicken focuses on personal and small business finance, while Xero offers broader accounting for growing businesses.
  • Xero vs Hubdoc: Hubdoc automates data capture from bills and receipts, enhancing data entry into Xero for efficiency.
  • Xero vs Expensify: Expensify excels in expense tracking with automated receipt scanning and reporting, separate from Xero’s accounting focus.
  • Xero vs QuickBooks: QuickBooks offers a user-friendly interface and direct support for small businesses, contrasting with Xero’s app marketplace.
  • Xero vs AutoEntry: AutoEntry automates data entry from documents into Xero, similar to Hubdoc but with a different pricing model.
  • Xero vs FreshBooks: FreshBooks excels in invoicing with customizable options, while Xero offers a comprehensive accounting platform with more integrations.
  • Xero vs Netsuite: NetSuite provides a broader ERP solution for larger businesses compared to Xero’s focus on small to medium-sized accounting needs.

More of Zoho Books

  • Zoho Books vs Puzzle IO: Puzzle IO focuses on AI-driven financial insights, while Zoho Books emphasizes a user-friendly accounting suite.
  • Zoho Books vs Dext: Dext automates data extraction from receipts/invoices, streamlining bookkeeping tasks more than Zoho Books alone.
  • Zoho Books vs Synder: Synder specializes in e-commerce sales data synchronization, a niche that Zoho Books supports through integrations.
  • Zoho Books vs Easy Month End: Easy Month End streamlines financial close processes, which is a more focused function than Zoho Books’ broad accounting.
  • Zoho Books vs Docyt: Docyt provides budgeting and forecasting tools tailored to specific industries, unlike Zoho Books’ general accounting features.
  • Zoho Books vs RefreshMe: I don’t have enough specific information on “RefreshMe” to provide a detailed comparison with Zoho Books.
  • Zoho Books vs Sage: Sage offers strong compliance and enterprise-level features, whereas Zoho Books targets small to medium-sized businesses.
  • Zoho Books vs Wave: Wave provides free accounting for very small businesses, while Zoho Books offers more scalability with paid plans.
  • Zoho Books vs Quicken: Quicken focuses on personal and small business finances, unlike Zoho Books, which is designed for business accounting.
  • Zoho Books vs Hubdoc: Hubdoc automates data capture from bills/receipts, enhancing data entry into Zoho Books for better efficiency.
  • Zoho Books vs Expensify: Expensify specializes in expense tracking automation, a feature that Zoho Books handles within its accounting framework.
  • Zoho Books vs QuickBooks: QuickBooks is known for its user-friendly interface and small business focus, similar to Zoho Books.
  • Zoho Books vs AutoEntry: AutoEntry automates data entry from documents, improving accuracy in Zoho Books, similar to how it integrates with other platforms.
  • Zoho Books vs FreshBooks: FreshBooks focuses on invoicing and project management, while Zoho Books provides a broader accounting solution.
  • Zoho Books vs NetSuite: NetSuite is a comprehensive ERP for larger enterprises, while Zoho Books serves the accounting needs of smaller businesses.

Frequently Asked Questions

Does Zoho Books offer a free plan?

Yes, Zoho Books offers a free plan for businesses with annual revenue under USD 50,000. The plan supports one user and provides basic accounting features.

How many users can I have on Xero’s basic plan?

Xero’s entry-level “Early” plan allows one user. Upgrading to higher-tier plans provides for the addition of more users.

Which software has more integrations for business accounting software?

Xero generally boasts a larger marketplace with more integrations compared to Zoho Books.

Are the accounting tools in Zoho Books suitable for a small business?

Yes, Zoho Books provides a comprehensive set of accounting tools, including invoicing and expense tracking, ideal for small businesses.

Which platform is considered easier to use for beginners in business accounting software?

Zoho Books is often praised for its user-friendly interface, making it a good choice for those new to accounting software.