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Which Accounting Software is Better: Zoho Books or Xero? Find out more about the two leading accounting software providers.
The “zoho books vs quickbooks” is a question that has been asked many times. Zoho Books and Xero are two software packages that have been discussed in the past. The “zoho books vs quickbooks” will be answered by using statistics to determine which software package is better.
Although Zoho Books and Xero are both popular accounting software, they each offer their own set of features, capabilities, and pricing ranges. Which one is best for you will ultimately be determined by your budget and company scenario. If you’re a solopreneur or freelancer looking for free invoice tracking, or a small firm looking for detailed inventory monitoring, Zoho Books is the way to go. Xero is a better option if you have a small firm with a lot of workers to pay.
When Should You Use Zoho Books?
If you use or intend to use any other Zoho products, Zoho Books will provide you with greater value. Zoho Books, for example, interacts with Zoho CRM to help you manage your sales, marketing, and inventory in one location, as well as Zoho Expenditure to make expense reporting easier. Payroll is restricted to India, California, and Texas, despite being more feature-rich than Xero. While this isn’t a deal breaker for Zoho Books, using a third party for payroll may be problematic. However, Zoho Books excels out in terms of inventory management and automation tools, making it one of our top small company accounting software selections.
Zoho Books is a better option for you.
- Our top free mobile invoicing tool, Zoho Books, also provides basic accounting functions like as sending invoices, allocating costs, inputting bill payments, documenting time spent, and even reading reports. The mobile app for Zoho Books is much superior than that of Xero in terms of functionality.
- We appreciate that Zoho Books provides a variety of options for users to contact the provider or be reached by Zoho Books. Unlike Xero, Zoho Books provides a phone number, an email address, a chatbot, and a live chat agent. If you have any issues with your account, Zoho Books can assist you immediately.
- Other Zoho Apps for Businesses: Zoho Books is one of the apps in the Zoho One package. Zoho One bills itself as a “business operating system,” and it charges a single monthly fee. You may use Zoho One to have access to over 40 enterprise-level apps, including Zoho Books.
Visit Zoho Books for more information.
When Should You Use Xero?
All of Xero’s subscriptions allow for unlimited users, making it an excellent alternative for small companies looking to expand. This is a significant benefit over Zoho Books, which requires you to buy the most costly plan in order to handle 10 users.
With Xero, you can start small with the Early plan and then upgrade as your business grows and you need more capabilities. Xero is also our preferred QuickBooks replacement since it is less expensive while offering many of the same capabilities. Additionally, with its interface with Gusto, the application provides full-service payroll, therefore we definitely suggest Xero if you have a large number of workers to pay.
Xero is a better option for
- Fixed asset management: The fixed asset manager in Xero maintains track of your fixed assets, calculates depreciation, and calculates any gain or loss from disposals. This feature appeals to us since it distinguishes Xero from other popular accounting software products, such as Zoho Books.
- Unlimited users: Zoho Books’ most expensive package only allows for ten users. Furthermore, you will be charged for extra users. If you require more than 10 users without paying for it, we suggest Xero.
- Third-party app integrations: Xero offers a large library of third-party applications that integrate with the accounting software, making it one of our top e-commerce accounting software options. If you’re using HubSpot, Mailchimp, or Shopify, the Xero App Store makes it simple to link them to Xero.
Go to Xero’s website.
When to Use a Substitute
Xero and Zoho Books are two excellent accounting software applications. However, for special purposes, you may wish to explore the following products:
- Free software service: Zoho Books offers a free plan, however it is only available to enterprises with annual sales of less than $50,000. Because it’s completely free and has no income restrictions, Wave is our top pick for free accounting software for beginners. Read our Wave review to discover more about how Wave’s free service works.
- Working with a local bookkeeper: If you need a bookkeeper or accountant, QuickBooks Online gives you access to a lengthy list of independent QuickBooks ProAdvisors who can help small company owners with bookkeeping. Check out our review of QuickBooks Online.
- Accounting for building projects need extra functionality not available in generalist accounting software such as Zoho Books and Xero. Instead, due of its construction-specific capabilities including work costing modules, estimates, reports writing, and equipment management, we propose Sage 100 Contractor. Because of its construction accounting capabilities and basic enterprise resource planning (ERP) functionalities, Sage 100 Contractor is one of our finest construction accounting software options. To learn more about the features of Sage 100 Contractor, see our review.
Case Study of a Fit Small Business
We looked at Zoho Books and Xero in 11 essential categories that an accounting software solution should have, using the case study approach we created. In all 11 main categories, the graphic below shows a side-by-side comparison of Zoho Books vs Xero.
We’ll compare accounts receivable (A/R), inventory, and project accounting in more detail later in this article. These are the three areas where Zoho Books and Xero compete. Read our Zoho Books and Xero reviews for in-depth articles that cover all aspects of our case study.
Let’s take a quick look at how Zoho Books and Xero compare in this quick comparison.
At a Glance: Zoho Books vs. Xero
Xero vs. Zoho Books: What’s the Difference?
Both Zoho Books and Xero are reasonably priced and provide a comparable set of functionality. Let’s have a look at the price options for Zoho Books and Xero.
Pricing for Zoho Books
Zoho Books comes in four different pricing options, ranging from Zoho Books is available in four plans with monthly fees ranging from $0 to $70 per month. The free plan supports a single user and includes basic features, such as bank reconciliation, expense tracking, and recurring invoices. Moreover, the free plan has limits, such as 1,000 invoices per year and $50,000 annual revenue. The paid plans give you access to advanced features, like sales orders and purchase orders management, time tracking, budgeting, and more. to $70 per month. A single user may utilize the free plan, which offers basic features like bank reconciliation, spending tracking, and repeating invoicing. Furthermore, the free plan contains limitations, such as a restriction of 1,000 invoices per year and a revenue cap of $50,000 per year. Advanced features like as sales and purchase order management, time tracking, budgeting, and more are available with the premium subscriptions.
- Free: Free: $0 per month; includes one user plus one accountant per month; one user and one accountant are included.
- Standard: $20 per month; three users are included.
- $50 per month for a professional account with five users.
- Premium: $70 per month for a total of ten users.
For $3 per month, additional users may be added to the Standard, Professional, and Premium subscriptions.
Xero Costing
Xero provides three different options, ranging in price from $12 to $65 per month. You may only input up to five bills and send up to 20 invoices on the Early plan. We suggest the Growing and Established plans if you need to send infinite invoices and input endless bills:
- $12 per month if paid early.
- Growing at a rate of $34 per month
- Settled at $65 per month
Takeaway: We believe that Xero Growing is the most cost-effective option for most customers, and it includes unlimited users. If you require project accounting, however, Zoho Professional could be the best option.
Features of Zoho Books vs. Xero
Both Zoho Books and Xero have their own set of features, but they also have a lot in common. Our case study discovered that although the two systems have just a few notable differences, they both provide the characteristics that ideal accounting software should have. Let’s go through the features of Zoho Books and Xero, focusing on some of the most important aspects from our case study.
Tiered Features of Zoho Books
Tiered Features in Xero
Xero vs. Zoho Books: A/R
In terms of the features we require in an A/R management solution, Zoho Books and Xero are on par. You may generate invoice items, take quick payments, examine invoices, and see customer balances, among other things. The only feature that stands out is the ability to create invoices.
Invoices from Zoho Books are past due. It provides customers with a variety of design choices and templates to let them create their own invoices. We enjoy how Zoho paid attention to details like font, alignment, orientation, and margins while creating invoices. Because of the degree of control you have over the overall design of your invoice, it seems like you’re creating it in word processing software.
Xero, on the other hand, falls short when it comes to invoice design. Only the invoice line items may be edited in Xero. Xero, on the other hand, lacks such characteristics in terms of design, color, and font style. Because you may alter the line items, you can make customized invoices. You can’t, however, modify the color or font to make it more consistent with your brand.
Takeaway: If you don’t care about invoice design, both Zoho Books and Xero are good options for handling accounts receivable. However, Zoho Books certainly outperforms Xero when it comes to customizing invoices to fit your brand.
Xero vs. Zoho Books: Inventory
In terms of the capabilities we wish to see, such as generating inventory items, monitoring inventory costs, and accounting for the cost of goods sold, Zoho Books and Xero’s inventory management system is likewise excellent (COGS). It should come as no surprise that these functions are included in full-featured accounting software applications.
The only distinction we can make between Zoho Books and Xero is the flexibility to increase inventory functionality. This is where Zoho Books has a little edge. Within the Zoho ecosystem, there is also Zoho Inventory, a specialized inventory management software that has more inventory functionality than Zoho Books. If you wish to keep track of inventory in great detail, Zoho Books and Zoho Inventory are excellent companions inside the Zoho suite, making it simple and straightforward to use.
Through the Xero App Store, you can combine Xero with more than 20 inventory management software options. For others, having a larger number of connectors rather than being limited to just one app, as with Zoho Books, may be desirable.
Takeaway: In summary, you must choose between what you want and what is more convenient for you. You may either subscribe to Zoho One or buy a separate subscription for Zoho Inventory if you choose Zoho Books. If you go with Xero, you may pick the inventory management software you want or go with a more economical one.
Project Accounting: Zoho Books vs. Xero
Zoho Books and Xero make tracking and managing projects a snap. They both offer the project accounting capabilities we expect to see, such as project creation, cost assignment, project estimates, inventory allocation, and reporting. The only feature we observed Zoho Books lacked was a comparison of real to budget inventory utilized on the project.
Although this isn’t a serious flaw in Zoho Books, we believe that this functionality should have been included in the budget-to-actual reports. Meanwhile, Xero does not lack any project accounting functionality, and it received a flawless grade in our review.
Takeaway: There isn’t much of a difference between Zoho Books and Xero in terms of functionality. Both software applications for project accounting come highly recommended since they have all of the functions we need.
Xero vs. Zoho Books: Ease of Use
In our review, the simplicity of use of Zoho Books and Xero differs. Both accounting software applications, we believe, offer varying degrees of complexity in terms of usage.
Ease of Use with Zoho Books
Zoho Books is a feature-rich program with a wide range of capabilities. As a result, we believe that using Zoho Books might be difficult for first-time users or those with little experience with accounting software. Zoho Books may be challenging to use for freelancers and self-employed people.
Zoho Books will walk you through the setup process the first time you use it, but there’s still a lot to do after that. To enter operating balances, rates, and other preferences, you’ll need to go to Settings. Other accounting software applications include similar features during the initial setup process, so you won’t notice. However, after entering your account’s basic information, you may perform the following using Zoho Books:
Window for creating invoices in Zoho Books
We also notice that browsing around Zoho Books may be difficult. You can master it, though, if you use it often. If this is your first time using Zoho Books, expect some challenges. If you’ve used any other Zoho applications, you’ll find Zoho Books to be quite similar in terms of user interface design.
The layout of Zoho Book may sometimes be overpowering, as seen in the screenshot of the invoicing pane above. You’ll come across pop-up windows now and again, which might make things much more difficult. As a result, we’ll offer Zoho Books an above-average difficulty rating.
Xero’s User-Friendly Interface
Even though Xero has a lot of functionality, we like how simple it is to use. Getting around Xero is simple and straightforward. Users can immediately imagine what would display when the menu bars are clicked. It also makes it simpler to consume everything on the screen by using fewer pop-up windows:
Window for creating invoices in Xero
In Xero’s invoice generating window, for example, you can locate all of your information in one spot. To fill out and verify information, there’s no need to scroll up and down. The user experience of Xero is much superior than that of Zoho Books. The interface design is well-thought-out, and space is well used.
Using box patterns and colored boundaries, Xero also did an excellent job of generating “sections.” The windows in Zoho Books are generally white and gray, making it difficult to differentiate between them. Xero highlights crucial action buttons like “Send” and “Skip for now” with its trademark color.
Takeaway: Because of its clear user interface and simple navigation flow, we’ll award Xero with simplicity of use. On the contrary, due of its complicated navigation flow and frequent usage of popup windows, users would need more time to learn how to utilize Zoho Books.
Xero vs. Zoho Books: Integrations
One of the most appealing features of Zoho Books is that it works smoothly with other Zoho products like Zoho CRM and Zoho Inventory. It also has integrations with payment platforms like PayPal, Stripe, and Authorize.Net.
Xero offers a larger marketplace, with over 700 third-party software integrations. PayPal, Stripe, HubSpot, Mailchimp, BigCommerce, Shopify, Gusto, WorkflowMax, and simPRO are among the numerous connectors available.
Takeaway: If you’re a business owner who utilizes a variety of tools to run your company, Xero’s extensive connectors will come in handy. If you want to run your business with just one piece of software, Zoho Books is the way to go.
Xero vs. Zoho Books: Mobile App
In terms of mobile app capabilities, Zoho Books comes out on top. Even when you’re not at your desk, you can use the mobile app to do all of your basic accounting and documentation tasks. Only a few fundamental features are covered by Xero. The program cannot be utilized as a stand-alone solution for Xero accounting operations. You’ll have to stick with the online version.
A basic comparison of Zoho Books and Xero mobile apps is shown in the table below:
*When using the Xero mobile app to record invoices, you won’t be able to enter units for inventory purchases. It’s just good for day-to-day costs.
Takeaway: Zoho Books has the upper hand in terms of mobile capabilities. It has more features and is more useful than the Xero mobile accounting app.
Assisted Bookkeeping using Zoho Books vs. Xero
Although Zoho Books does not have an in-house staff of bookkeepers, you may hire trained, independent Zoho Books Advisors to help you with your bookkeeping. Let’s say you want to use Zoho Books to assist you manage your books or your company. In that scenario, you may look up a list of independent accountants, bookkeepers, and financial advisers who have acquired the Zoho Books Advisor accreditation in Zoho Books’ directory.
Xero Advisors are accountants and bookkeepers who have been certified by Xero. Go to the Xero Advisers website to locate advisors in your area. It also makes use of third-party tools and services to help users with their accounting. For example, Bookkeeper360 can provide you with on-demand access to a professional bookkeeper.
Takeaway: Neither Zoho Books nor Xero come close to QuickBooks Online when it comes to aided bookkeeping. In the United States, QuickBooks ProAdvisors outnumber Xero Advisors and Zoho Books Advisors.
Customer Support: Zoho Books vs. Xero
Zoho Books easily outperforms Xero in terms of customer service. Unlike Xero, all of Zoho Books’ premium packages include live customer assistance through phone or chat. You’ll have to send an email and wait for a response if you need to contact the Xero support staff. The good news is that they operate around the clock, so you’ll probably get a response in less than 24 hours.
Customer Service at Zoho Books
All paying Zoho Books plans feature live phone and chat help, however the free plan only includes email assistance. It also comes with the following resources:
- Basic navigation directions, keyboard shortcuts, and step-by-step instructions in banking, contacts, invoicing, client portal, costs, and items are all included in the Zoho Help Database.
- Zoho Video Lessons/Webinar: You may discover video tutorials and a webinar on how to use Zoho Books in the support database.
Customer Service at Xero
Unlike Zoho Books, Xero does not provide the option of speaking with a real person. Xero Business Help Center and Xero University, on the other hand, are available:
- Xero Help Center: A comprehensive help center with video tutorials and step-by-step how-to articles on a variety of Xero subjects, both simple and sophisticated.
- Xero U (University): You may learn how to utilize Xero by enrolling in video instructional courses offered by Xero University. Accountants, bookkeepers, and small company owners are among the users who will find the themes useful.
Takeaway: In terms of customer service, Zoho Books comes out on top. You’ll get access to email, phone, and chat help options after you join up for a subscription plan, which are more dependable than Xero’s customer care.
Conclusion
Both Zoho Books and Xero have advantages and disadvantages, and the choice is based on your specific company requirements. If you simply need a few individuals to see your accounting data and you’re already a Zoho customer, go with Zoho Books. Choose Xero instead if your accounting department has more than 10 individuals or you have a large number of employees to pay.
Zoho Books vs Xero is a comparison of accounting software. Which software is best in 2022? Reference: zoho one.
Frequently Asked Questions
Which is better Zoho or Xero?
A: It is difficult to say which company is better because they each offer different features. If you want a financial management solution that has an accounting feature, Xero would be the best option for you. If you are looking for a business software platform with CRM capabilities and analytics, Zoho could be your go-to choice.
Which is best QuickBooks or Xero?
A: Both Xero and Quickbooks are good accounting software programs. They both have different benefits that you can use to help your business grow. For example, with QuickBooks, businesses can take advantage of enterprise level features that do not come at the cost of convenience or functionality in their basic program. However, smaller companies may find themselves better off using Xero because it is more affordable for them as well as being easier to learn how to use in a shorter amount of time than QuickBooks is
Is Zoho Books Good for accounting?
A: Zoho Books is a great way to start your own accounting business. It allows you to manage all aspects of your company from online and offline invoices, receipts, taxes, payments and more.
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