Xero vs Zoho Books (2026): Which Accounting Software Should You Use?

A feature-by-feature comparison of Xero and Zoho Books for small businesses — pricing, free tier, integrations, and migration steps.

Updated 2026-09 · 2026

Xero

Cloud accounting built for businesses working with accountants and bookkeepers

$20month (Early plan, USD)

Strengths

+1,000+ app marketplace integrations
+Strong bank reconciliation and bank feed matching
+Multi-currency support on all paid plans

Weaknesses

-No free plan — pricing starts immediately
-Entry plan (Early) caps invoices/bills sent per month
-Payroll only available via third-party add-ons in most regions

Best for

Growing businesses that work with an outside accountant or bookkeeper and want a large ecosystem of add-ons

Zoho Books

Affordable invoicing and accounting with a genuinely free tier

Freeup to $50k annual revenue, 1 user

Strengths

+Real free plan (not just a trial) for businesses under $50k/year revenue
+Very low-cost paid tiers ($20–$70/mo covers most small teams)
+Deep native integration with Zoho CRM, Inventory, and the wider Zoho suite

Weaknesses

-Far fewer third-party (non-Zoho) integrations than Xero
-Multi-currency locked behind higher-tier plans
-US payroll support is limited to select states via Zoho Payroll

Best for

Budget-conscious small businesses, freelancers, or teams already using other Zoho apps

Feature Comparison

Feature	Xero	Zoho Books
Free plan	No	Yes (revenue under $50k/yr, 1 user)
Entry paid price	$20/mo	$20/mo (or $15/mo billed annually)
Invoicing & estimates	Yes	Yes
Bank reconciliation	Yes, strong bank feed matching	Yes
Multi-currency	Included on all paid plans	Premium plan and above only
Inventory tracking	Growing plan and above	Professional plan and above
Third-party integrations	1,000+ apps	~50 apps + full Zoho ecosystem
Payroll	Via Gusto add-on (US)	Via Zoho Payroll, select US states only
Client/customer portal	Basic	Full self-service portal included
Mobile app	Yes (iOS/Android)	Yes (iOS/Android)
Workflow automation rules	Limited, mostly via add-ons	Built-in automation and approval workflows
Accountant/advisor access	Free for accountants and bookkeepers	Included at Professional tier and above

The Verdict

If you already work with an accountant and want the widest possible integration ecosystem, Xero is worth the extra cost. But if you're a small business or freelancer watching every dollar, Zoho Books' free tier and $20/month plans do 80% of what Xero does for a fraction of the price — especially if you're already in the Zoho ecosystem. Teams needing heavy multi-currency or complex inventory should test both before committing.

How to switch from Xero to Zoho Books

1In Xero, go to Accounting > Reports and export your Chart of Accounts, Trial Balance, Contacts, and Aged Receivables/Payables as CSV files; also use Settings > General Settings > Export Data for a full Excel backup of your organization.
2Clean up the exported CSVs (remove duplicate contacts, standardize account codes) and map them to Zoho Books' import templates under Settings > Data Import.
3Import your Chart of Accounts first, then Contacts (customers and vendors), then historical invoices and bills into Zoho Books — in that order — to avoid broken references.
4Reconnect your bank and credit card feeds inside Zoho Books' Banking module, since bank connections don't transfer automatically from Xero.
5Manually recreate recurring invoices, tax rates, and any automation/approval workflows in Zoho Books, as these are not included in CSV exports.
6Run both systems in parallel for one billing cycle to verify balances match, then move your team's access to Zoho Books and cancel your Xero subscription.

Xero vs Zoho Books: common questions

How do I export my data from Xero to migrate to Zoho Books?+

In Xero, go to Accounting > Reports and export your Trial Balance, Chart of Accounts, Contacts, and Aged Receivables/Payables as CSV files. Xero also has a full 'Export Data' option under Settings > General Settings that downloads a broader backup (Excel format) — use this to make sure you have historical invoices and bills before cutting over.

What features do I lose moving from Xero to Zoho Books?+

You'll lose Xero's larger third-party app marketplace (1,000+ vs Zoho's ~50), so check any niche integrations (e.g. specific payroll or CRM tools) before switching. Multi-currency also moves from a standard feature to a Premium-tier-only feature in Zoho Books, which matters if you invoice internationally.

Is Zoho Books' free plan enough for a small team?+

It's enough for a solo freelancer or a very small business under $50k in annual revenue with one user — it includes invoicing, expense tracking, and bank reconciliation. Once you add a second user, exceed the revenue cap, or need multi-currency/inventory, you'll need to upgrade to at least the Standard or Professional plan.

Does Zoho Books integrate with the same apps as Xero?+

No — Zoho Books integrates deeply with other Zoho apps (CRM, Inventory, Expense) but has far fewer non-Zoho integrations than Xero's 1,000+ app marketplace. If you rely on Xero add-ons for payroll, e-commerce, or industry-specific tools, check Zoho's app directory first to confirm equivalents exist.

Is Zoho Books actually cheaper than Xero long-term?+

Yes, for most small businesses. Zoho Books' paid tiers run $20–$70/month compared to Xero's $20–$80/month, and Zoho's free tier can cover very small businesses indefinitely, while Xero has no free option at all. The gap widens further if you need multi-currency or advanced automation, since Zoho bundles more of that into mid-tier plans.