Zoho Books vs Xero
Choose Zoho Books if you want a free option for a small business or built-in inventory and project tools on its Professional plan; choose Xero if you need unlimited users or prioritize its third-party app ecosystem. Both are available cloud accounting products for US businesses, but their plans differ substantially in user allowances, invoice limits, and when advanced features become available.
Last updated October 27, 2026.
At a glance
| Dimension | Zoho Books | Xero |
|---|---|---|
| Plans | Free, Standard, Professional, Premium, Elite, Ultimate | Early, Growing, Established |
| Free option | Free plan; annual revenue must not exceed $50,000 | One-month free offer; no free plan listed |
| Regular monthly price | $0; paid plans $20–$275 per organization, billed monthly | $27, $59, or $97 per month |
| Users | Free: 1 user plus 1 accountant; paid plans: 3–15 users | No per-user license fees |
| Invoice limits | 1,000–100,000 invoices annually, depending on plan | Early: 20 invoices; Growing and Established: unlimited invoices |
| Multiple currencies | From Professional | Established |
| Projects | Billable timesheets and project profitability from Professional | Time and cost tracking on Established |
| Inventory | Inventory tracking from Professional; advanced control on Elite | Inventory Plus optional on Growing and Established |
| Integrations | Zoho CRM, Zoho Inventory, and Stripe integrations | 1,000-plus connected apps |
| Platforms | Cloud access; iOS and Android apps; Windows desktop app | Online accounting; iOS and Android apps |
| Support | Free: email; paid plans: email, voice, and chat | 24/7 online support; callbacks, not inbound phone support |
| Banking | Bank reconciliation on Free; connected bank feeds from Standard | Bank reconciliation on all three plans |
Scroll the table sideways to compare each row.
Which should you choose?
Choose Zoho Books if
- Businesses eligible for a free accounting plan
- Teams that already use Zoho apps
- Businesses seeking inventory tracking on Professional
- Project-based teams seeking billable timesheets on Professional
Choose Xero if
- Teams that need unlimited users
- Businesses choosing from 1,000-plus app integrations
- Teams seeking online support around the clock
- Businesses that want domestic standard ACH bill payments included
The verdict
The deciding factor is how your business expects to grow. Zoho Books suits a smaller team that can work within its plan limits and wants inventory tracking, project profitability, and multiple currencies on Professional. Xero suits a team that needs to add users without per-user license fees or connect accounting to a broad selection of apps. Compare the regular subscription price and the plan containing the features you need, rather than choosing on entry price alone.
Zoho Books vs Xero: common questions
- Is Zoho Books or Xero free?
- Zoho Books has a free US plan for businesses whose annual revenue does not exceed $50,000. Xero lists paid US plans and a one-month free offer, but no permanently free plan.
- How much do Zoho Books and Xero cost?
- Zoho Books lists a free plan and paid US plans from $20 to $275 per organization per month when billed monthly. Xero's regular US prices are $27, $59, and $97 per month for Early, Growing, and Established, respectively. Promotional prices may differ.
- Which product works better for a team with many users?
- Xero lists no per-user license fees. Zoho Books includes a set number of users by plan, from three on Standard to 15 on Ultimate, and offers additional users as a paid add-on.
- What are the entry-plan invoicing limits?
- Zoho Books allows up to 1,000 invoices annually on Free and 5,000 annually on Standard. Xero Early permits 20 invoices; Xero Growing and Established list unlimited invoices.
- Which offers inventory management?
- Zoho Books includes inventory tracking from Professional and advanced inventory control on Elite. Xero offers Inventory Plus as an optional add-on to Growing and Established.
- Which plan supports multiple currencies and projects?
- Zoho Books lists multiple-currency transactions, billable timesheets, and project profitability from Professional. Xero lists multiple currencies and project time and cost tracking on Established.
- Can I use Zoho Books and Xero on a phone?
- Yes. Both vendors offer iOS and Android accounting apps. Zoho Books also lists a Windows desktop app.
- How does customer support differ?
- Zoho Books lists email support on Free and email, voice, and chat support on paid plans. Xero offers 24/7 online support and can arrange a callback, but does not offer inbound phone support.