Zoho Books vs Xero

As a business owner, choosing the right accounting software is an important decision, and often a tough one. With so many options in the market, it can be overwhelming to pick the right one. In this article, we’ll be comparing Zoho Books and Xero, two big players in the market, to help you make an informed decision.

A brief introduction to Zoho Books and Xero

Before we dive into the comparison, let’s take a brief look at Zoho Books and Xero.

Zoho Books is an online accounting software designed for small businesses. It offers invoicing, expense tracking, inventory management, project management, and other features that help businesses manage their finances. It also integrates with other Zoho products like CRM, inventory, and projects.

Xero, on the other hand, is a cloud-based accounting software that caters to businesses of all sizes. It has powerful bookkeeping features, invoicing capabilities, inventory tracking options, and more. Xero also integrates with over 800 third-party apps, making it easy to customize and scale your financial management process.

Both Zoho Books and Xero offer mobile apps that allow users to manage their finances on-the-go. With Zoho Books’ mobile app, users can create and send invoices, track expenses, and manage their contacts. Xero’s mobile app offers similar features, as well as the ability to reconcile bank transactions and view financial reports.

Features of Zoho Books and Xero

Both Zoho Books and Xero offer an impressive range of features that make accounting and financial management easy for businesses. Let’s take a look at some of the key features of both platforms:

Zoho Books features:

• Invoicing
• Expense tracking
• Inventory management
• Billing and time tracking
• Bank reconciliation
• Project management
• Estimates and quotes
• Purchase order processing
• Multi-currency

Xero features:

• Invoicing
• Expense tracking
• Inventory management
• Bank reconciliation
• Payroll processing
• Payments and billing
• Time tracking
• Purchase order processing
• Fixed asset management

While both Zoho Books and Xero offer similar features, there are some differences between the two platforms. One key difference is that Zoho Books offers project management capabilities, which can be useful for businesses that need to track time and expenses for specific projects. On the other hand, Xero offers payroll processing and fixed asset management, which can be important for businesses with employees and physical assets. Ultimately, the choice between Zoho Books and Xero will depend on the specific needs of your business.

User interface comparison: Zoho Books vs Xero

The user interface of an accounting software plays an important role in the user experience. Let’s take a look at how Zoho Books and Xero compare in terms of user interface:

Zoho Books has a relatively simple and easy-to-use interface. Navigation is straightforward, with a sidebar to access different modules. The dashboard displays the most important financial information at a glance, like overdue invoices, outstanding balances, and expenses.

Xero also has a user-friendly interface, with a dashboard that displays the most critical financial data. It’s easy to navigate and use, even for beginners. Xero also offers a mobile app, which is an added advantage for businesses on the go.

However, Zoho Books offers more customization options for the dashboard, allowing users to choose which data they want to see at a glance. Xero, on the other hand, has a more modern and visually appealing interface, with more color and design elements. Ultimately, the choice between Zoho Books and Xero will depend on the specific needs and preferences of the user.

Pricing comparison: Zoho Books vs Xero

Pricing is a crucial factor that businesses consider when choosing accounting software. Let’s take a look at the pricing plans of Zoho Books and Xero:

Zoho Books offers three pricing plans to choose from:

• Basic – $9/month (2 users)
• Standard – $19/month (3 users)
• Professional – $29/month (10 users)

Xero offers three pricing plans as well:

• Early – $5.50/month (5 invoices and quotes, 20 bank transactions)
• Growing – $18/month (unlimited invoices and quotes, 1000 bank transactions)
• Established – $40/month (unlimited invoices and quotes, unlimited bank transactions)

Aside from pricing, there are other factors to consider when choosing between Zoho Books and Xero. One of the key differences is the user interface. Zoho Books has a more straightforward and simple interface, making it easier for users who are not familiar with accounting software. On the other hand, Xero has a more complex interface, but it offers more advanced features that are useful for businesses with more complex accounting needs.

Another factor to consider is customer support. Zoho Books offers email and phone support during business hours, while Xero offers 24/7 email and phone support. Xero also has a large community of users who can provide support and advice through their online forums.

Mobile app comparison: Zoho Books vs Xero

Mobile apps are a must-have for businesses that are always on the go. Let’s see how Zoho Books and Xero compare when it comes to their mobile apps.

Zoho Books has a mobile app available for both iOS and Android devices. The app allows businesses to create and send invoices, track expenses, view financial reports and more. However, some users have reported issues with the app, like error messages and bugs.

Xero also has a mobile app that’s available for both iOS and Android devices. The app allows businesses to manage invoices, expenses, bank transactions, and more. Users have reported that the app is easy to use and reliable.

When it comes to pricing, Zoho Books offers a more affordable option for small businesses. Their basic plan starts at $9 per month, while Xero’s basic plan starts at $20 per month. However, Xero offers more advanced features in their basic plan, such as multi-currency support and project tracking.

Another factor to consider is customer support. Zoho Books offers email and phone support, as well as a knowledge base and community forum. Xero offers 24/7 email support and a community forum, but phone support is only available during business hours.

Payment gateway integration comparison: Zoho Books vs Xero

Payment gateway integration is an essential feature for businesses that want to accept online payments. Let’s take a look at how Zoho Books and Xero compare regarding payment gateway integration.

Zoho Books supports payment gateways like PayPal, Stripe, Square, Authorize.net, and more. This makes it easy for businesses to accept online payments from clients. However, some users have reported difficulties setting up payment gateways.

Xero supports payment gateways like PayPal, Stripe, and GoCardless. Businesses can also set up automatic payment reminders for clients. Users have reported that setting up payment integration is easy and straightforward.

It’s important to note that while Zoho Books supports a wider range of payment gateways, Xero’s integration with PayPal and Stripe is more seamless. Additionally, Xero’s automatic payment reminders can help businesses reduce late payments and improve cash flow. However, businesses that require more payment gateway options may find Zoho Books to be a better fit for their needs.

Tax management comparison: Zoho Books vs Xero

Tax management is one of the most crucial features in any accounting software. Let’s take a look at how Zoho Books and Xero compare regarding tax management.

Zoho Books allows businesses to set up tax rates, sales tax, and apply them to invoices and expenses. There’s also a tax report that businesses can use to calculate taxes payable. Some users have reported that the tax management feature is confusing and difficult to use.

Xero has robust tax management features that allow businesses to set up tax codes, apply them to invoices and expenses, and generate reports. Xero also supports payroll tax and sales tax. Users have reported that Xero’s tax management feature is more user-friendly than Zoho Books.

Customer support comparison: Zoho Books vs Xero

Customer support is essential in case businesses face any issues while using the software. Let’s take a look at how Zoho Books and Xero compare in terms of customer support.

Zoho Books offers customer support via email, live chat, and phone support. However, some users have reported slow response times and unhelpful customer support. Zoho Books also has an extensive knowledge base that businesses can use for self-help.

Xero offers customer support via email and phone support. Businesses can also access an online help center with FAQs and resources. Users have reported that Xero’s customer support is responsive and helpful.

Pros and cons of using Zoho Books for your business

Let’s take a look at some of the pros and cons of using Zoho Books for your business:

Pros:

• User-friendly interface
• Comprehensive feature set
• Multi-currency support
• Good mobile app

Cons:

• Slow customer support
• Payment gateway integration issues
• Confusing tax management features

Pros and cons of using Xero for your business

Now, let’s examine some of the pros and cons of using Xero for your business.

Pros:

• Robust feature set
• Excellent payment gateway integration
• User-friendly interface
• Responsive customer service

Cons:

• Relatively expensive pricing plans
• Mobile app may not be as reliable

Which software is better suited for small businesses: Zoho Books or Xero?

Zoho Books is an excellent option for small businesses that want a simple and easy-to-use accounting software. Zoho Books is also budget-friendly and offers a comprehensive feature set.

Xero, on the other hand, offers robust features and superior payment gateway integration. However, it may be a bit expensive for small businesses.

Which software is better suited for large businesses: Zoho Books or Xero?

For larger businesses that need a more scalable solution, Xero is a better option. Xero is designed to cater to businesses of all sizes with its extensive range of features, integrations, and superior payment gateways.

Integration options with other software platforms: Zoho Books vs Xero

Both Zoho Books and Xero offer integration options with other software platforms. Let’s see how they compare:

Zoho Books offers integrations with other Zoho products like Zoho CRM, Zoho Inventory, and Zoho Projects. It also integrates with popular third-party apps like Stripe, Shopify, and PayPal. However, the range of integrations is comparatively limited.

Xero, on the other hand, offers integration with over 800 third-party apps, including popular options like Salesforce, HubSpot, and Trello. This makes Xero a highly customizable and scalable option for businesses.

Security features comparison: Zoho Books vs Xero

Security is crucial when it comes to accounting software. Let’s see how Zoho Books and Xero compare in terms of security features.

Zoho Books uses industry-standard AES (Advanced Encryption Standard) encryption to ensure data privacy and security. It also supports two-factor authentication for added security. Zoho Books is also GDPR compliant and is SOC 2 Type II certified.

Xero uses 128-bit SSL encryption, two-factor authentication, and continuous data backups to ensure data security. Xero is also ISO 27001 certified, which means it meets international security standards.

Final verdict and recommendation on choosing between Zoho Books and Xero

Both Zoho Books and Xero offer impressive features and easy-to-use interfaces. However, Xero has a slight edge over Zoho Books when it comes to payment gateway integration, tax management, and third-party app integrations.

We recommend Xero for businesses that need robust features and integrations and are willing to pay a higher price for it. For small businesses that need a budget-friendly option that’s easy to use, Zoho Books is a great choice.