Zoho Books vs Xero: Which One Fits Best For Your Business?

Table of Contents

Last Updated: April 2024

In business accounting, the competition is fierce: Zoho Books vs Xero. As you navigate the realm of financial management tools, choosing between these two giants is no small feat.

This article takes you through a head-to-head comparison of Zoho Books and Xero, outlining their features and benefits. Get ready to unravel the dilemma of choosing the perfect fit for your business as we pit Zoho Books against Xero.

Zoho Books vs Xero Feature Comparison

In your quest for the ideal accounting software, you’ll discover that Zoho Books and Xero each bring distinct offerings while sharing many similarities. 

These platforms encompass the essential features that top-notch accounting software should boast. Let’s delve into the specifics of Zoho Books and Xero, highlighting key aspects.

1. Invoicing

You can observe that Zoho Books and Xero closely match when it comes to the features desired in an A/R management system

You can generate invoice items, handle partial payments, access invoices, check customer balances, and much more. However, the standout distinction lies in the way invoice creation is handled.

Zoho Books

  • Creative Invoice Design: Zoho Books impresses with unique templates and detailed customization, akin to professional document editing.
  • In-Depth Control: Zoho Books offers a meticulous font, alignment, and margin adjustment, elevating invoice aesthetics beyond typical systems.


“Invoice generation and recurring invoices.”

⭐4.5/5 Piyush V.


  • Limited Design Options: Xero’s invoice design capabilities are restricted, allowing only editing of invoice line items. Features such as design, color, and font style are absent, limiting overall customization.
  • Partial Customization: While Xero permits personalized invoices through line item adjustments, it lacks comprehensive design controls like colors and fonts. This restricts your ability to align the invoice with your branding beyond modifying line items.

“We have also utilized Xero’s automation tools to send out invoices monthly and reduce man-effort in our finance department.”

⭐4.5/5, Samuel K.

2. Project Accounting

You’ll find tracking and managing projects in Zoho Books and Xero effortless. Both platforms offer anticipated project accounting functionalities like creating projects, assigning costs, making estimations, managing inventory allocation, and generating project reports. 

Zoho Books

  • Project Management Integration: Zoho Books includes project accounting that facilitates seamless project management by enabling the creation, cost allocation, estimation, and reporting of projects.
  • Resource Allocation Control: With Zoho Books’ Project Accounting, you can efficiently allocate resources, estimate costs, and monitor project-related financial activities, enhancing overall project visibility and financial management.


 “Easy to use, having invoice, inventory, and project management software. ”

⭐4.5/5 Vanisree V.


  • Project Financial Management: It empowers users to effectively manage project finances by facilitating cost tracking, estimation, and reporting within a centralized platform.
  • Expense Allocation: You can efficiently allocate expenses to specific projects, ensuring accurate financial insights and streamlined project-based financial management.

“Xero eradicates manual accounting tasks which saves time from AP, AR, and GL.”

⭐5/5, Abigail H.

3. Integrations

Zoho Books

  • Comprehensive Zoho Integration: Zoho Books offers seamless integration with other Zoho products like Zoho CRM and Zoho Inventory, enhancing overall business management and data flow.
  • Payment Gateway Connectivity: Additionally, Zoho Books connects effortlessly with popular payment gateways, including PayPal, Stripe, and Authorize.Net, streamlining financial transactions and payment processing.

“With a wide range of products and integration, it is very useful as it can communicate well with other products.”

⭐4.5/5 Mohammad


  • Vast Integration Selection: Xero boasts an expansive marketplace, connecting with over 700 third-party software solutions. This range includes popular options like PayPal, Stripe, HubSpot, Mailchimp, BigCommerce, Shopify, Gusto, WorkflowMax, and SimPRO.
  • Diverse Software Connectivity: Xero’s integrations encompass a diverse array of applications, spanning finance, e-commerce, marketing, and more, offering users a wide spectrum of tools to enhance their business operations.

“Xero is extremely easy to use and has fantastic integration capabilities for business owners.”

⭐5/5, Angie M.

4. Assisted Bookkeeping

Zoho Books

  • Certified Assistance: While Zoho Books lacks an internal bookkeeping team, you can access certified independent Zoho Books advisors for assisted bookkeeping services.
  • Zoho Books Advisor Directory: If you require assistance managing your books or business, Zoho Books provides a directory of independent accountants, bookkeepers, and financial advisors with the Zoho Books Advisor designation.

“Best Software for bookkeeping.”

⭐5/5, Nara A.


  • Certified Advisor Network: Xero designates accountants and bookkeepers as Xero Advisors, allowing users to locate nearby advisors through the Xero Advisors page.
  • Third-Party Assisted Bookkeeping: Xero offers assisted bookkeeping through third-party programs like Bookkeeper360, enabling users to access professional bookkeepers on demand.

“It is one of the best software that I have used to manage day-to-day accounting and bookkeeping”

⭐4.5/5, Manam T.

Zoho Books vs Xero Comparison of Pricing

Zoho Books

Free Plan: 

  • Businesses  with less than 50K revenue
  • 1 User + 1 Accountant
  • Manage Clients, 1K Invoices/year
  • Customer Portal, Payments, Reminders

Standard Plan:

  • Price: $10/month (Billed Annually)
  • Users: 3
  • Includes Free features +
  • 5,000 Invoices, Recurring Expenses
  • Bank & Credit Card Feeds

Professional Plan:

  • Price: $20/month (Billed Annually)
  • Users: 5
  • Includes Standard features +
  • Project Expense Tracking
  • Project Tasks, Timesheets
  • Sales Approval

Premium Plan:

  • Price: $30/month (Billed Annually)
  • Users: 10
  • Includes Professional features +
  • 3 Branches, Custom Domain
  • Vendor Portal, Multi-Transaction Numbers

Elite Plan:

  • Price: $100/month (Billed Annually)
  • Users: 10
  • Includes Premium features +
  • Unlimited Custom Reports
  • Advanced Multi-currency, Inventory Control

Ultimate Plan:

  • Price: $200/month (Billed Annually)
  • Users: 15
  • 25 Custom Modules
  • Includes Elite features +
  • Advanced Analytics
    zoho books vs xero


Starter Plan

  • Price: $25/month
  • Features: Includes bank reconciliation, sending quotes and 20 invoices, and entering 5 bills

Standard Plan

  • Price: $40/month
  • Features: Offers bank reconciliation, invoices, quotes, bills, expenses, cash coding, online invoicing, and payroll for up to 2 people.

Premium Plan

  • Price: $54/month
  • Features: Encompasses all Standard Plan features, plus multicurrency support and automated superannuation.
    zoho books vs xero

Zoho Books vs Xero Comparison Table

Features Zoho Books Xero
Invoice Customization Extensive customization options Limited customization options
Integration Options Integrates with Zoho products and select third-party apps Integrates with numerous third-party apps
Project Accounting Offers project tracking and management features Provides project management capabilities
Inventory Management Adequate inventory management tools Comprehensive inventory control options
Bank Reconciliation Standard bank reconciliation features Advanced bank reconciliation capabilities

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zoho books vs xero

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Opt for Zoho Books if:

  • You value extensive customization options for your invoice and document designs.
  • Integration with other Zoho products and a variety of payment gateways is a priority.

Choose Xero if:

  • A vast marketplace with over 700 third-party integrations is crucial for expanding your business’s functionality.
  • Comprehensive project management and inventory control are essential for your operations.

In the end, your choice between Zoho Books and Xero depends on your specific business needs. Consider your priorities and business requirements to make the best decision for your financial management journey.

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