Last updated: October 2026 | Prices checked against the official Xero US and Zoho Books US pricing pages
Disclosure: SmallBiz Stack is reader-supported. Some links on this site may be affiliate links, which means we may earn a commission at no extra cost to you. This never changes our verdicts. Prices change often, so confirm the current rate on the vendor’s site before you sign up.
Xero and Zoho Books are two of the strongest alternatives to QuickBooks for US small businesses. Xero is known for clean design, unlimited users and a large accountant network. Zoho Books is known for value: a genuinely useful free plan, low prices and deep features, especially if you use other Zoho apps.
Xero vs Zoho Books at a glance
| Xero | Zoho Books | |
|---|---|---|
| Free plan | No (free trial) | Yes, for businesses with revenue up to $50,000 a year |
| Entry paid plan | Early, $27/mo | Standard, $15/mo (annual) or $20 (monthly) |
| Mid plan | Growing, $59/mo | Professional, $40/mo (annual) or $50 (monthly) |
| Users | No per-user fees | 1 (Free), 3, 5, 10 or 15 by plan |
| Invoice limits | 20/month on Early | 1,000 to 100,000 a year by plan |
| Inventory | Add-on (Inventory Plus) | Professional and up |
| Projects | Established ($97) | Professional and up |
| Multi-currency | Established | Professional and up |
| Best for | Teams with many users and an accountant | Cost-conscious businesses, Zoho users |
Zoho Books pricing in 2026
| Plan | Annual billing | Monthly billing | Users | Invoices a year | Highlights |
|---|---|---|---|---|---|
| Free | $0 | $0 | 1 + accountant | 1,000 | Invoices, expenses, bank reconciliation, 1099 tracking (revenue up to $50K) |
| Standard | $15/mo | $20/mo | 3 | 5,000 | Bank feeds, sales tax tracking, 1099 e-filing, custom reports |
| Professional | $40/mo | $50/mo | 5 | 10,000 | Purchase orders, multi-currency, inventory, projects, timesheets |
| Premium | $60/mo | $70/mo | 10 | 25,000 | Budgets, fixed assets, cash flow forecasting, vendor portal |
| Elite | $120/mo | $150/mo | 10 | 100,000 | Advanced inventory, warehouses, shipping, online sales channels |
| Ultimate | $240/mo | $275/mo | 15 | 100,000 | Advanced analytics and BI |
Prices are per organization and exclude taxes.
Xero pricing in 2026
| Plan | Regular price | Highlights |
|---|---|---|
| Early | $27/mo | 20 invoices and 5 bills a month, 30-day cash flow forecast |
| Growing | $59/mo | Unlimited invoices, automated bill entry, auto-reconcile, budgets |
| Established | $97/mo | Multi-currency, projects, expense claims, KPIs |
Xero charges no per-user fees. When we checked, new US customers could get up to 80% off for three months.
Cost example
| Business | Xero | Zoho Books (annual billing) |
|---|---|---|
| Freelancer, $40K revenue, 10 invoices a month | Early: $27/mo | Free: $0 |
| 3-person service firm, 40 invoices a month | Growing: $59/mo | Standard: $15/mo |
| 5-person product business with inventory and projects | Established $97 + Inventory Plus | Professional: $40/mo |
| 8-person team with budgets and forecasting | Established: $97/mo | Premium: $60/mo |
Zoho Books is cheaper at every level here. Xero’s advantage shows up in very large teams (no per-user limits) and in its accountant ecosystem.
Features compared
Invoicing and payments
Both handle quotes, invoices, recurring billing and online payments well. Zoho Books includes progress invoicing from Standard and a customer portal; Xero’s Early plan caps invoices at 20 a month.
Inventory and projects
Zoho Books includes inventory and project profitability from Professional ($40). Xero includes projects on Established and sells inventory as an add-on.
Users
Xero’s unlimited users is its strongest advantage for larger teams. Zoho Books limits users by plan, up to 15 on Ultimate.
Ecosystem
Zoho Books integrates tightly with Zoho CRM, Zoho Inventory and the Zoho One bundle. Xero integrates with a large marketplace of apps and with Gusto for payroll.
Accountants
Xero has a large global accountant network and is especially popular outside the US. Fewer US accountants specialize in Zoho Books, though it gives accountants free access.
Three real-world scenarios
A freelance photographer earning $35,000 a year. Zoho Books Free covers invoicing, expenses and bank reconciliation for $0. Xero would cost $324 a year.
A 4-person marketing agency already using Zoho CRM. Zoho Books Standard at $15 a month syncs with the CRM. Xero Growing would cost $59 a month.
A 20-person company with several part-time bookkeepers and managers. Xero’s unlimited users avoid Zoho’s user caps, and its accountant network makes outsourcing easier.
Questions to ask before you sign up
- What is your annual revenue? Zoho Books Free is only for businesses up to $50,000 a year.
- How many people need access? Count users against Zoho’s limits.
- Do you need inventory? Zoho includes it from Professional; Xero needs an add-on.
- Which apps do you already use? Zoho users benefit most from Zoho Books.
- What does your accountant use? Ask before you commit.
What changes as you grow
- Revenue passes $50,000: Zoho Books Free no longer applies, and you move to Standard ($15 a month annually). Xero’s price doesn’t depend on revenue.
- You hire a fourth person who needs access: Zoho Books Standard allows 3 users, so you move to Professional ($40). Xero stays the same.
- You start selling products: Zoho Books Professional includes inventory. On Xero, add Inventory Plus to Growing or Established.
- You bill clients in other currencies: Zoho Books includes multi-currency from Professional; Xero requires Established ($97).
Frequently asked questions
Can I try both before deciding?
Yes. Zoho Books has a free plan and a free trial of paid plans; Xero offers a free trial. Connect the same bank account to both for a week and compare.
Is Zoho Books really free?
Yes, for businesses with up to $50,000 in revenue per financial year, with 1 user plus an accountant and up to 1,000 invoices a year.
Is Zoho Books cheaper than Xero?
Yes, at comparable feature levels. Zoho Books Standard is $15 a month on annual billing against $59 for Xero Growing.
Does Xero limit users?
No. Xero plans have no per-user license fees.
Can I switch from Xero to Zoho Books?
Yes. Zoho Books offers migration tools for Xero data. Switch at the start of a month or quarter for clean records.
The bottom line
Zoho Books is the better value for most small businesses, especially Zoho users and anyone under $50,000 in revenue. Xero is the better choice for larger teams that need unlimited users or a Xero-savvy accountant.
Related: QuickBooks Online vs Xero · Wave vs QuickBooks