Zoho vs Xero Comparison 2025: Is Xero or Zoho Books Better?

A pivotal part of running a successful business in this day and age is picking the right accounting software. Zoho Books and Xero are two of the most popular platforms in that category. 

In our Zoho vs Xero comparison, we'll conduct a side-by-side examination of their features, prices, pros, and cons. 

We trust that this will ultimately help you determine which one of these duos is better suited for your finances. Let's jump right in, shall we?

What Is The Difference Between Zoho And Xero?

The main difference between Zoho and Xero is that while Zoho Books is part of the larger Zoho Ecosystem, Xero exists solely and purely as an accounting platform. Also, Xero goes the extra mile by giving users the chance to manage fixed assets, a feature that's notably absent in Zoho. 

In addition, while Xero offers an unlimited number of users, Zoho restricts the number of users allowed to 15. Xero also lacks a client portal as well as automated workflows, both of which can be found in Zoho Books. 

As you’ll learn in our Zoho Books review, Zoho provides a range of customer support options including email, voice, and chat. Xero's customer support is however restricted to just email, which is a major drawback as mentioned in this Xero review. 

Zoho vs Xero Comparison Chart

Zoho vs Xero Books Pricing

The paid plans of Zoho Books include Standard, Professional, Premium, Elite, and Ultimate. The Standards plan starts at $19.80 monthly and $16.50 per month for annual payments. 

The Professional Plan starts at $ 39.60 monthly and $33.00 for annual payments. The Premium Plan starts at $59.40 monthly and $44.00 per month for annual payments. 

There is also the Elite Plant, which starts at $220 per month and $181.5 for yearly payments. Closing out the list is the Ultimate Plan which costs $385 monthly and $319(per month) annually.  

Xero starts at $15 per month for its "Early" plan, $42 monthly for its "Growing" plan, and $78 monthly for its "Established" Plan. 

Xero also offers a huge discount of 50% off for users who subscribe for 3 consecutive months. However, the offer is only available for a limited time and may be taken off at any time. 

It is worth of note that Zoho Books offers a 14-day free trial period for all the plans while Zoho provides a free trial for 30 days. 

Winner: Xero Books

Even without its discount, Xero Books is clearly the least expensive option for users working with a budget. It also offers an unlimited number of users for all its plans while Zoho Books restricts the number of users to 15 on its highest "Ultimate" plan. 

Xero vs Zoho Free Version

Xero does not have a free version of its accounting software. Users however get a 30-day free trial period which is a chance to explore the software and see if it's fitting for their business. 

With Zoho Books, you get a completely free version. The free version was designed for small businesses that make less than $50,000 yearly. 

It comprises basic features including bank reconciliation, limited invoice management, client portal, recurring invoices, email support, automated payment reminders, etc. 

Winner: Zoho Books

Zoho Books is the obvious winner here as it offers a free version with a considerable amount of basic features that will serve a growing business. 

Customer Support

Zoho Books thrills its users with a variety of customer support options including email support, phone support, live chat support, and a chatbot. 

All paid subscribers get access to "Classic" support which includes email support, chat support, and toll-free support for 8 hours for five working days. It also includes remote assistance, and the max response time, according to the site, is 8 hours, which is relatively good. 

There is also the option of a "Premium" Support, which costs $49 per month or $490 annually. This support plan guarantees 24/5 service, including remote assistance, product onboarding, and configuration assistance, and the max response time is 3 hours. 

Xero, on the other hand, lacks a robust customer support service, offering only a chatbot and email support. 

Users are encouraged to send in their unique complaints after which they will be assigned to a customer support team within two hours according to the site. However, you can expect longer response times on some days. 

Winner: Zoho Books

Zoho Books wins this round easily because it offers a range of customer support options with reasonable response times. Even free users get email support with a max response time of 24 hours.

Knowledgebase & Learning

In addition to its customer support options, Zoho Books has a vast knowledgebase with tons of articles and guides. 

These help guides cover all the important features including banking, client portal, expenses, invoices, etc. You also get basic instructions on keyboard shortcuts and easy navigation. 

To make things even better, the database includes explicit video tutorials and a webinar on all things Zoho Books. 

Xero makes up for its not-so-impressive customer support with a deep knowledgebase on its help center. The help center features video tutorials, articles, and guides on simple and advanced features. 

There’s also a "Xero University" with video tutorial courses curated to improve users' proficiency in using the system. There are categories for small business owners, accountants, and bookkeepers. 

Winner: Tie

Both options offer a robust knowledgebase as a customer support alternative for their users so this one is a tie. 

Xero vs Zoho Books: Features And Functionality

Now, let's take things a step further and compare some of the advanced features of both software. Shall we?

Zoho Or Xero For Ease Of Use

Zoho Books is easy to use for users who already have some experience with using accounting programs. However, it can be quite overwhelming for users who haven't had any such experience owing to the sheer variety of features. 

Not only that, there’s a guide that helps you set up but things can get pretty lonely post set-up. The color division could be better and the layout could be less overwhelming. 

One thing we do know is that you'll get a hang of it with constant use. 

Xero, on the other hand, has a simple and navigable user interface making it easy to use even for beginners. 

You can tell a lot of thought went into designing the interface with proper spacing, colored dividers, and box layouts for sections. Its branding color syncs well with action buttons making for a pleasurable user experience overall. 

Winner: Xero

Xero wins this round because it has a more inviting user interface and is easier to use than its counterpart. 

Xero vs Zoho: Online Versions

Xero is a cloud-based software that can be accessed online using web browsers like Chrome, Firefox, Safari, and the rest of them. The interface is alluring, with proper and colorful categorization of features. 

Similarly, Zoho Books is cloud-based software that you can access on your phone, tablet, or laptop using any browser. The interface is well-organized, although the design could be more inviting. 

Winner: Xero

While both platforms are web-based, Xero gets a slight edge because of its simple and gorgeous interface. 

Zoho vs Xero Desktop Versions

Zoho Books offers a native desktop app for Mac and Windows PC users. The app comes with frequent updates and allows users to perform myriads of functions including sending payment reminders and managing timers. 

Xero, on the other hand, does not natively offer a desktop app. If you're intent on getting a desktop app, you can always create a desktop shortcut from your browser. There is also the option of using third-party apps like WebCatalog for a desktop experience. 

Winner: Zoho

Zoho wins this category because it's the only one of the duo with a native desktop app for Mac and Windows. 

Zoho Books vs Xero Mobile Apps

Zoho Books has a great mobile app with a wide range of functions. Users get to send invoices, receive payments, enter bill payments, view reports, and record time worked amongst other functions. All on the go. 

The app is available on Google Play and the App Store for Android and iOS smartphones. 

Xero users can also download the Xero mobile app on Google Play and App Store. Although the app is navigable and intuitive, it is lacking in functionality compared to its counterpart. 

It allows users to send invoices, categorize expenses in bank feeds, enter bills, and capture receipts. 

However, you cannot view reports, receive payments, or assign expenses to customers with the app. 

Winner: Zoho

The Zoho mobile app pulls clear in this category because of its extended list of functions making it possible to do a lot more on the go. 

Invoicing

Zoho Books allows you to create and send invoices while choosing from a stack of invoice templates. You can customize your invoices, change the colors, and upload your business logo. 

There is also an option to view outstanding invoices, create recurring invoices, and print/email invoices. Not to mention the outstanding level of control you have on the final look of your invoice. 

With Xero, you can also create invoices(even with the mobile app) and customize the invoices to suit your needs. It allows you to send automated reminders to customers, view outstanding invoices, and create recurring ones. 

However, the templates are limited, and users do not get as much control over their invoice design, seeing as they cannot edit font size and color. 

Winner: Zoho Books

While both platforms are equally matched at the core of invoicing, Zoho Books seizes the win because of the range of customization options. 

Integrations

As mentioned earlier, Zoho Books is part of the Zoho ecosystem so it integrates seamlessly with other Zoho products like Zoho Inventory and the like. It also offers integration with popular payment gateways like Authorize.Net, PayPal, and Stripe. 

Xero, on the other hand, integrates with more than 700 third-party software across different niches When it comes to payments in particular, Xero and Stripe integrate seamlessly, but so do PayPal, Shopify, Gusto, MailChimp, and WorkflowMax among others. It hosts a massive app store where users can download these apps and unlock synergies. 

Winner: Xero

Xero wins this round because it offers far more integrations than its counterpart, Zoho Books. 

A Note On Zoho Xero Integration

As nice as it would have been to have a Xero Zoho integration, it simply doesn't exist natively on either app. 

However, Zoho Books users who also use Zoho Inventory and Zoho Expenses are in luck because those two can be integrated with Xero. 

You also have the option of using third-party apps like Zapier and Integrately for seamless integration.

Inventory Management

Zoho Books has an effective inventory management system that allows users to set up inventory items and add inventory to an invoice. 

You also get to reduce inventory for units returned to the vendor and view the total stock on hand. To add to that, you can integrate Zoho Books with Zoho Inventory for detailed tracking, convenience, and better management overall.

Xero also comes with all the basics of an inventory management system including the ability to set up an item and add it to an invoice. 

You can also update inventory, decrease inventory for units returned, manage inventory costs, and view inventory. There is the option of integrating with any of the over 20 inventory management software available on the Xero app store. 

Winner: Tie

In terms of inventory management, Zoho Books and Xero are equally matched. And while Xero offers more integration options, we believe Zoho Books' integration with Zoho Inventory is just as good as any other. 

Xero or Zoho For Assisted Bookkeeping

Zoho Books provides users access to certified and independent Zoho Books advisors for bookkeeping services and counsel. There's a directory with a list of not just bookkeepers but also accountants and financial advisors. 

In the same vein, Xero also certifies bookkeepers as part of its Xero Advisors. There is a Xero Advisors page with a list of bookkeepers and accountants nearest to you. The platform also uses third-party programs like Bookkeeper360 to provide access to professional bookkeepers. 

Winner: Xero

Xero pulls slightly ahead in this category because of its partnership with Bookkeeper360 to provide access to certified bookkeepers and accountants. 

Reporting

Zoho Books boasts efficient reporting tools offering everything from financial reports to comprehensive financial analysis to cash-flow statements. 

Users also get real-time reports about financial health and progress which allows them to make informed decisions and devise important strategies going forward. 

Xero also features advanced reporting and delivers everything from deep financial analysis to simple cash flow statements. You also get real-time reports on your business's finances with explicit details that will give you an idea of how much progress has been made and what the lapses are. 

Winner: Tie

Both platforms appear to be evenly matched in terms of their reporting capabilities. 

Bank Reconciliation

Zoho Books gives you the chance to link and reconcile your bank accounts. 

That way, you can receive consistent updates on accounting activities and ensure your bank statement aligns with your accounting records leaving no room for huge discrepancies. You have the option of choosing a set time to reconcile and delete/undo reconciliation.

Xero also boasts viable bank connections giving users access to bank feeds and updates in real time. 

The platform streamlines bank reconciliation ensuring that your accounting records are updated and without error. Xero also provides reconciliation suggestions based on previous matches or preset bank rules. 

Winner: Zoho Books

While both apps provide stellar bank reconciliation features, Zoho's reconciliation system is more robust and efficient.

Project Accounting and Management

Zoho Books offers project features, including project creation, estimations, and assignment of project costs. 

Users can add sales taxes, inventory, and labor costs to estimates. You can also track time spent on a project, create multiple projects, and assign specific tasks to your employees.

Similarly, Xero has a stack of project Accounting features allowing users to create projects, make project estimations, assign project costs, and view full project reports. 

Users also get to track expenses, track time, and pay employees based on tracked time. You can also do an actual-to-budget comparison of inventories used while working on the project. 

Winner: Xero

Both apps are great with project accounting and management but Xero gets the edge because of the budget variance report feature, which is lacking in Zoho Books. 

Is Zoho Better than Xero? Our Conclusion

Making the choice between Zoho Books and Xero really depends on your business needs and peculiarities. Zoho Books is best if you intend to give only a handful of people access to your accounting data. Xero, on the other hand, suits an accounting department with over a dozen members. 

Zoho Books is also great for people who already use other products in the Zoho suite, while Xero is more suitable for businesses that are just starting out. 

Ultimately, both platforms are two of the best accounting software options on the market. So, choosing either of them is a win for your business.