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 compare Zoho Books and Xero, two major players in the market, to help you make an informed decision.

A Brief Introduction to Zoho Books and Xero

Before diving into the comparison, let's take a brief look at Zoho Books and Xero.

Zoho Books is an online accounting software designed for small to medium-sized businesses. It offers features such as invoicing, expense tracking, inventory management, project management, and more to help businesses manage their finances effectively. Additionally, it integrates seamlessly with other Zoho products like Zoho CRM, Zoho Inventory, and Zoho Projects.

Xero, on the other hand, is a cloud-based accounting software that caters to businesses of all sizes. It boasts powerful bookkeeping features, robust invoicing capabilities, comprehensive inventory tracking, and extensive integrations with over 800 third-party apps, making it highly customizable and scalable for diverse financial management needs.

Both Zoho Books and Xero offer mobile apps, enabling users to manage their finances on the go. Zoho Books' mobile app allows users to create and send invoices, track expenses, and manage contacts, while Xero's mobile app includes additional features like bank transaction reconciliation and financial report viewing.

Features of Zoho Books and Xero

Both Zoho Books and Xero offer an impressive range of features that simplify accounting and financial management for businesses. Here's 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 Support

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. Zoho Books includes project management capabilities, which can be beneficial for businesses that need to track time and expenses for specific projects. Conversely, Xero offers payroll processing and fixed asset management, which are essential 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 accounting software plays a crucial role in user experience. Here's how Zoho Books and Xero compare in terms of user interface:

Zoho Books features a simple and intuitive interface. Navigation is straightforward, with a sidebar providing access to different modules. The dashboard displays key financial information at a glance, such as overdue invoices, outstanding balances, and expenses.

Xero also offers a user-friendly interface, featuring a dashboard that highlights critical financial data. It is easy to navigate and use, even for beginners, and its mobile app is a significant advantage for businesses on the go.

However, Zoho Books allows for more customization options on the dashboard, enabling users to choose which data they want to view immediately. Xero, on the other hand, has a more modern and visually appealing interface with richer color schemes and design elements. The choice between Zoho Books and Xero will ultimately depend on user preferences and specific business requirements.

Pricing Comparison: Zoho Books vs Xero

Pricing is a crucial factor when selecting accounting software. Here's a comparison of the pricing plans for Zoho Books and Xero:

Zoho Books Pricing Plans:

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

Xero Pricing Plans:

Early - $11/month (5 invoices and quotes, 20 bank transactions)
Growing - $37/month (unlimited invoices and quotes, 100 bank transactions)
Established - $70/month (unlimited invoices and quotes, unlimited bank transactions)

In addition to pricing, other factors should be considered when choosing between Zoho Books and Xero. One key difference is the user interface: Zoho Books offers a more straightforward and simple interface, making it easier for users unfamiliar with accounting software, while Xero provides a more complex interface with advanced features suited for businesses with more intricate accounting needs.

Customer support is another important consideration. Zoho Books offers email and phone support during business hours, whereas Xero provides 24/7 email and phone support. Additionally, Xero has a large community of users who can offer support and advice through their online forums.

Mobile App Comparison: Zoho Books vs Xero

Mobile apps are essential for businesses that operate on the go. Here's how Zoho Books and Xero compare in terms of their mobile apps:

Zoho Books offers 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 occasional issues with the app, such as error messages and bugs.

Xero also provides a mobile app for both iOS and Android devices, enabling businesses to manage invoices, expenses, bank transactions, and more. Users have praised the app for its ease of use and reliability.

Regarding pricing, Zoho Books tends to be more affordable for small businesses, with the basic plan starting at $9 per month compared to Xero's basic plan at $37 per month. However, Xero offers more advanced features in their lower-tier plans, such as multi-currency support and project tracking.

Customer support is another consideration: Zoho Books provides email and phone support, along with a comprehensive 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 essential for businesses that accept online payments. Here's a comparison of Zoho Books and Xero in this regard:

Zoho Books supports payment gateways such as PayPal, Stripe, Square, Authorize.net, and more, facilitating easy online payment acceptance from clients. However, some users have experienced difficulties setting up certain payment gateways.

Xero supports payment gateways like PayPal, Stripe, and GoCardless. Additionally, businesses can set up automatic payment reminders for clients, enhancing cash flow management. Users have found setting up payment integrations with Xero to be straightforward and seamless.

While Zoho Books offers a wider range of payment gateways, Xero's integration with PayPal and Stripe is more seamless. Furthermore, Xero's automatic payment reminders help reduce late payments and improve cash flow. Businesses requiring a broader selection of payment gateway options might find Zoho Books more suitable.

Tax Management Comparison: Zoho Books vs Xero

Effective tax management is crucial for any accounting software. Here's how Zoho Books and Xero compare:

Zoho Books allows businesses to set up tax rates, sales tax, and apply them to invoices and expenses. It also provides tax reports to help calculate taxes payable. However, some users have found the tax management features to be confusing and difficult to navigate.

Xero offers robust tax management features, including setting up tax codes, applying them to invoices and expenses, and generating comprehensive reports. Xero also supports payroll tax and sales tax, and users have reported that its tax management tools are more user-friendly compared to Zoho Books.

Customer Support Comparison: Zoho Books vs Xero

Reliable customer support is essential when using accounting software. Here's a comparison of customer support between Zoho Books and Xero:

Zoho Books provides customer support via email, live chat, and phone during business hours. Additionally, it offers an extensive knowledge base for self-help. However, some users have reported slow response times and unhelpful support.

Xero offers customer support through email and phone, with access to an online help center containing FAQs and resources. Users have generally found Xero's customer support to be responsive and helpful.

Pros and Cons of Using Zoho Books for Your Business

Here are some of the advantages and disadvantages of using Zoho Books:

Pros:

User-friendly interface
Comprehensive feature set
Multi-currency support
Affordable pricing
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 advantages and disadvantages of using Xero:

Pros:

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

Cons:

Relatively higher pricing plans
Mobile app may have occasional reliability issues

Which Software is Better Suited for Small Businesses: Zoho Books or Xero?

Zoho Books is an excellent option for small businesses seeking a simple, easy-to-use, and budget-friendly accounting software. Its comprehensive feature set covers essential financial management needs without overwhelming users.

Xero, while offering robust features and superior payment gateway integration, may be relatively more expensive, making it better suited for small businesses that can accommodate higher pricing for advanced functionalities.

Which Software is Better Suited for Large Businesses: Zoho Books or Xero?

For larger businesses requiring a more scalable solution, Xero is the better option. Xero is designed to cater to businesses of all sizes with its extensive range of features, numerous integrations, and superior payment gateway options, providing the scalability needed for growing enterprises.

Integration Options with Other Software Platforms: Zoho Books vs Xero

Both Zoho Books and Xero offer integration options with other software platforms. Here's how they compare:

Zoho Books integrates seamlessly with other Zoho products such as Zoho CRM, Zoho Inventory, and Zoho Projects. It also connects with popular third-party apps like Stripe, Shopify, and PayPal. However, the range of integrations is more limited compared to Xero.

Xero offers integrations 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 seeking extensive integration capabilities.

Security Features Comparison: Zoho Books vs Xero

Security is paramount when it comes to accounting software. Here's how Zoho Books and Xero compare in terms of security features:

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

Xero utilizes 128-bit SSL encryption, two-factor authentication, and continuous data backups to safeguard data. Xero is also ISO 27001 certified, ensuring 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 user-friendly interfaces. However, Xero slightly edges out Zoho Books in areas such as payment gateway integration, tax management, and third-party app integrations.

We recommend Xero for businesses that require robust features and extensive integrations and are willing to invest in higher pricing plans. For small businesses seeking a budget-friendly option that's easy to use, Zoho Books is an excellent choice.