Xero vs Zoho Books: Which Should You Choose in 2026?
Choosing between Xero and Zoho Books comes down to understanding what each tool does best. This comparison breaks down the key differences so you can make an informed decision based on your specific needs, not marketing claims.
By Toolradar Team · Last updated February 28, 2026 · Methodology
Short on time? Here's the quick answer
We've tested both tools. Here's who should pick what:
Xero
Beautiful accounting software
Best for you if:
- • You want the higher-rated option (8.6/10 vs 8.4/10)
- • Xero is cloud accounting software for small businesses
- • It provides invoicing, bank reconciliation, and financial reporting
Zoho Books
Comprehensive accounting as part of the Zoho ecosystem
Best for you if:
- • You want to try before committing
- • Zoho Books is cloud accounting software for small businesses
- • It provides invoicing, expenses, and bank reconciliation
| At a Glance |  Xero |  Zoho Books |
|---|---|---|
Price | Paid | Free + Paid |
Best For | Accounting | Accounting |
Rating | 86/100 | 84/100 |
| Feature | Xero | Zoho Books |
|---|---|---|
| Pricing Model | Paid | Freemium |
| Editorial Score | 86 | 84 |
| Community Rating | No ratings yet | No ratings yet |
| Total Reviews | 0 | 0 |
| Community Upvotes | 0 | 0 |
| Categories | AccountingInvoicing | AccountingInvoicing |
How Xero and Zoho Books Compare
Xero
Beautiful accounting software
Paid · 86/100 score
Zoho Books
Comprehensive accounting as part of the Zoho ecosystem
Free tier available · 84/100 score
Who Should Use What?
On a budget?
Zoho Books has a free tier. Xero is paid only.
Go with: Zoho Books
Want the highest-rated option?
Xero: 86/100. Zoho Books: 84/100.
Go with: Xero
Value user reviews?
Neither has user reviews yet.
Go with: Xero
3 Questions to Help You Decide
What's your budget?
Xero is paid. Zoho Books is freemium. Zoho Books lets you start free.
What's your use case?
Both are accounting tools. Compare their specific features to decide.
How important are ratings?
Xero scores higher: 86/100 vs 84/100.
Key Takeaways
Xero
- Higher score: 86/100 vs 84
- Our pick for this comparison
Zoho Books
- Has a free tier
The Bottom Line
Xero (86/100) is our pick. Zoho Books has a free tier if you want to test without paying.
Frequently Asked Questions
Is Xero or Zoho Books better?
Xero scores 86/100 in our evaluation. Xero is paid and Zoho Books is freemium.
What are Xero and Zoho Books used for?
Xero: Beautiful accounting software. Zoho Books: Comprehensive accounting as part of the Zoho ecosystem.
What does Xero cost vs Zoho Books?
Xero is a paid tool. Zoho Books is freemium (free tier + paid plans). Visit their websites for detailed pricing.