Zoho Books suits solo owners and very small businesses that want a free plan or plenty of users on a low monthly plan. Xero suits businesses that want unlimited users on every plan and a wide app ecosystem. As of October 2026, Zoho Books has a $0 Free plan, while Xero's US plans start at $27 a month with no free plan.
Both are cloud accounting tools aimed at small businesses, but they price in opposite ways. Zoho Books limits users by plan, while Xero limits features but never charges per user. I read each company's US pricing page to compare them on their own terms.
Xero and Zoho Books at a glance
| Xero (US) | Zoho Books (US) | |
|---|---|---|
| Free plan | No, one month free to try | Yes, Free for 1 user plus 1 accountant |
| Entry paid plan | Early, $27 a month | Standard, $20 a month or $15 billed yearly |
| Users | No per-user licence fees on any plan | 3 users on Standard, 5 on Professional, 10 on Premium |
| Invoice limit on entry plan | 20 invoices on Early | Up to 1,000 invoices a year on Free |
| Stock tracking | Inventory Plus add-on | From Professional, advanced on Elite |
| Payroll | Xero Payroll powered by Gusto, add-on | Not listed on the plans I read |
Zoho Books pricing in detail
Zoho Books prices each plan per organisation per month, with a lower rate when billed yearly. Standard is $20 a month or $15 billed yearly, Professional $50 or $40, Premium $70 or $60, Elite $150 or $120 and Ultimate $275 or $240. The Free plan is aimed at solopreneurs and micro businesses, and Zoho's FAQ caps it at 1,000 invoices a year. Elite connects to Etsy, eBay and Amazon and up to 2 Shopify stores.
Xero pricing in detail
Xero's US page lists three plans: Early at $27 a month, Growing at $59 and Established at $97. Early lets you send quotes and 20 invoices and enter 5 bills, so it's tight for anyone invoicing weekly. Growing and Established remove those caps and add cash flow forecasting, dashboards and, on Established, multiple currencies and project tracking. New US customers get 90% off for 6 months, with the offer ending November 2 2026.
Who each one is built for
Zoho Books describes its Free plan as accounting software for solopreneurs and micro businesses, and its paid plans climb steadily towards inventory, warehouses and online store connections. Xero's US plans are named for stages of a business, Early, Growing and Established, and lean on cash flow forecasting and performance dashboards as you move up. If you sell physical products across several channels, Zoho's Elite plan is worth a look. If you'd rather keep accounting simple and add apps as you need them, Xero's approach fits.
The difference that matters most
On Xero, adding people never costs more, because there are no per-user licence fees. On Zoho Books, user numbers are part of each plan, from 1 user on Free up to 10 on Premium. A three-person team that sends lots of invoices could do well on Zoho's Standard plan, while a business where many people need access might prefer Xero.
For a wider comparison, see my roundup of bookkeeping software for small businesses and this guide to cloud invoicing for small businesses.
My advice on Xero or Zoho Books
If you're starting out and invoice less than 1,000 times a year, try Zoho Books Free first, since it costs nothing and includes an accountant login. If your team is growing or your accountant prefers Xero, the lack of per-user fees and the wide app ecosystem make Xero the easier long-term home. Either way, test with your real bank feed before you move your books.
Do you make accounting or invoicing software? Tool makers can ask to be considered for a featured place in comparisons like this one.
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Frequently asked questions
Is Zoho Books free?
Yes. Zoho Books has a Free plan for 1 user and 1 accountant, with up to 1,000 invoices a year, as of October 2026.
Does Xero have a free plan?
No. Xero offers one month free to try it. Its US plans start at $27 a month.
Does Xero charge per user?
No. Xero says there are no per-user licence fees on its plans.
How many users does Zoho Books allow?
The Free plan has 1 user plus 1 accountant, Standard has 3 users, Professional 5 and Premium 10.
Is Zoho Books cheaper if I pay yearly?
Yes. Zoho Books lists a lower monthly rate when billed yearly, for example $15 instead of $20 a month on Standard.
Does Xero have an invoice limit?
Only on the Early plan, which lets you send quotes and 20 invoices and enter 5 bills. Growing and Established don't carry those caps on Xero's US page.
Which is better for a small team, Xero or Zoho Books?
Zoho Books suits small teams on a tight plan, while Xero suits teams that want unlimited users without paying more per person.
