Xero vs Zoho Books
Verified ratings, real UK pricing and the compliance detail, weighed side by side — with a written verdict at the end.
Xero
Accounting Software
- United Kingdom
- Ireland
- New Zealand
- Australia
- United States
- Canada
- South Africa
- Live Chat
- Knowledge Base
- Forum
Zoho Books
Accounting Software
- United Kingdom
- Ireland
- United States
- Canada
- Australia
- India
- Phone
- Live Chat
- Knowledge Base
- Forum
Evenly matched on verified reviews — 4.1 against 4.1. Price and fit will decide this one, not the score.
The short version
What each one costs and how each one rates, side by side. Only the rows where leading means something are marked; vendor and availability are in the overview above.
| Detail | Xero | Zoho Books |
|---|---|---|
| What it costs | ||
| Starting priceLowest paid tier, excluding VAT | £16/mo | Free |
| Free version | NoNo | YesYes |
| Free trial | YesYes | YesYes |
| How it rates | ||
| Overall ratingMean of verified Assaylist reviews | 4.1 | 4.1 |
| Verified reviewsVolume is evidence, not a score — this row is not a contest | 297 reviews | 240 reviews |
Highlighted where one clearly leads. Rows without a highlight are not a contest.
How reviewers score them
Across the four dimensions we ask every reviewer about — and, below, the star split each average is built from.
- Xero
- Zoho Books
| Dimension | Xero | Zoho Books | Gap |
|---|---|---|---|
| Ease of use | 4.0 | 4.1 | 0.1 to Zoho Books |
| Value for money | 4.0 | 4.0 | Level |
| Customer support | 3.9 | 4.0 | 0.1 to Zoho Books |
| Functionality | 4.0 | 4.1 | 0.1 to Zoho Books |
What each average is made of
Two products can share an average and not share a reputation. These bars show the star split behind each score.
| Product | 5 star | 4 star | 3 star | 2 star | 1 star |
|---|---|---|---|---|---|
| Xero | 42% (125 reviews) | 34% (100 reviews) | 15% (45 reviews) | 6% (18 reviews) | 3% (9 reviews) |
| Zoho Books | 48% (114 reviews) | 29% (69 reviews) | 15% (36 reviews) | 7% (17 reviews) | 2% (4 reviews) |
Feature by feature
Everything either vendor publishes, split into what separates them and what they share.
- Only Xero
- 1243%
- Only Zoho Books
- 1657%
28 features listed across both products.
What only one of them does
Xero
12- Best in class bank reconciliation
- Cash flow forecasting
- CIS calculations and subcontractor reports
- Industry benchmarking
+ 8 more in the table below
Zoho Books
16- 50+ reports
- API access
- Bank reconciliation
- CIS contractor tracking
+ 12 more in the table below
| Detail | Xero | Zoho Books |
|---|---|---|
| Where they differ · 28 | ||
| Best in class bank reconciliation | YesYes | NoNo |
| Cash flow forecasting | YesYes | NoNo |
| CIS calculations and subcontractor reports | YesYes | NoNo |
| Industry benchmarking | YesYes | NoNo |
| Making Tax Digital for VAT | YesYes | NoNo |
| MTD for Income Tax ready | YesYes | NoNo |
| Multiple currencies | YesYes | NoNo |
| Payroll with RTI and auto enrolment | YesYes | NoNo |
| Performance dashboards | YesYes | NoNo |
| Smart document capture | YesYes | NoNo |
| Unlimited users on every tier | YesYes | NoNo |
| Very large app marketplace | YesYes | NoNo |
| 50+ reports | NoNo | YesYes |
| API access | NoNo | YesYes |
| Bank reconciliation | NoNo | YesYes |
| CIS contractor tracking | NoNo | YesYes |
| Customer portal | NoNo | YesYes |
| File CT600 Corporation Tax | NoNo | YesYes |
| File SA100 Self Assessment | NoNo | YesYes |
| Final Accounts filing | NoNo | YesYes |
| Inventory management | NoNo | YesYes |
| Mileage tracking | NoNo | YesYes |
| MTD for Income Tax | NoNo | YesYes |
| MTD for VAT | NoNo | YesYes |
| Projects and time tracking | NoNo | YesYes |
| Property tracking for landlords | NoNo | YesYes |
| Receipt autoscans | NoNo | YesYes |
| Recurring invoices | NoNo | YesYes |
A dash means the vendor has not published a feature list — which is not the same as the feature being unavailable.
How they handle UK obligations
Checked against the vendor's own documentation or HMRC's published list. A dash means we have not verified it — never that it is missing.
| Detail | Xero | Zoho Books |
|---|---|---|
| Verified against vendor documentation | ||
| HMRC-recognised for MTD for VAT | YesYes | YesYes |
| HMRC-recognised for MTD for ITSA | YesYes | YesYes |
| Making Tax Digital ready | YesYes | YesYes |
| RTI-compliant payroll | YesYes | Not listedNot listed |
| Pension auto-enrolment | YesYes | Not listedNot listed |
| CIS support | YesYes | YesYes |
| Open Banking bank feeds | YesYes | YesYes |
| UK-based support | UK support team | Not stated |
What each tier costs
Both line-ups on one ladder, so the middle tier on one side sits next to the middle tier on the other.
Xero
Zoho Books
Ignite
£16/mo
- Send quotes and 20 invoices
- Enter 10 bills
- Submit VAT returns to HMRC
Free
FreeLower
- 1 user plus 1 accountant
- File SA100 with HMRC
- MTD for Income Tax
Grow
£37/mo
- Unlimited invoices and quotes
- Automate bill entry
- Payroll for 1 person
Standard
£12/moLower
- 3 users
- Connect bank feeds
- Final Accounts filing
Comprehensive
£50/mo
- Payroll for 5 people
- 90 day cash flow forecast
- Expenses for 5 users
Professional
£24/moLower
- Projects and time tracking
- Inventory management
- Purchase orders
Rungs are matched by position in each vendor’s own line-up, not by what the tiers include — an entry plan on one side may cover more than the other. Prices exclude VAT unless stated, and per-seat plans are quoted per seat. Always confirm on the vendor’s own site.
Which should you choose?
Two answers, because there are two right ones depending on what you need.
Choose Xero if
- It lists 12 features Zoho Books does not, including best in class bank reconciliation.
- It covers more of the UK obligations we check — 7 of them against 4.
Choose Zoho Books if
- It costs less to get started — Free against £16/mo.
- There is a free tier you can stay on, which Xero does not offer.
- It lists 16 features Xero does not, including 50+ reports.
On verified Assaylist reviews, Xero currently rates 4.1 against 4.1 for Zoho Books. That gap is not the whole story: Xero starts at £16/mo and Zoho Books at Free, so the right answer depends on the tier you actually need and on which one handles your UK obligations. Read both profiles before you commit, and confirm current pricing on the vendor's own site.
We may earn a commission if you buy through links on this page. It never affects our ratings or what we recommend. How this works.