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Zoho Books Review

Simone Johnson
Simone Johnson
Staff writer

Freelancers, entrepreneurs and extremely small businesses need accounting software just as much as larger firms. Finding the right accounting software for a microbusiness requires focus on both price and usability. Zoho Books stood out in our search as an elite accounting solution for microbusinesses. 

Zoho Books

Zoho Books

Best Accounting Software and Invoice Generators of 2021

The Verdict

Zoho Books is our pick as best accounting software for really small businesses. It is affordably priced and offers a simple online accounting app that lets users create and send invoices, track expenses, and seamlessly connect accounts.

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For this category, we looked for accounting software for very small businesses – or microbusinesses – such as freelancers, consultants, sole proprietors, and individuals operating e-commerce and home-based businesses. 

While price is always a consideration, it's especially important for microbusinesses, so we looked for software that is both inexpensive and highly capable. We wanted to find a scalable application that very small businesses can continue to use as they grow, with options for upgrading to higher plans and integrating with other business applications. We also wanted it to have a mobile app that helps busy entrepreneurs keep up with their accounting tasks on the go. 

After much research and analysis of accounting software, we recommend Zoho Books as the best accounting software for really small businesses in 2020. 

Check out our best picks page to learn more about accounting software options best for your business. 


Zoho Books Pricing 

Really small businesses don't need complicated, pricey accounting software; they need affordable software that can grow with their operations. Zoho Books is a simple online accounting software application that syncs with your accounts and covers all the basics, allowing you to create and send invoices, track time and expenses, and generate reports. 

Like many accounting software platforms, Zoho Books offers three pricing plans. If you choose to pay annually rather than monthly, you receive a discounted rate. 

  • The Basic plan costs $9 per month or $90 per year. It supports one user (and an accountant) and allows you to add 50 contacts to the system. You can reconcile transactions, create invoices, track expenses, and manage projects and timesheets.

  • The Standard plan costs $19 per month or $190 per year. It supports two users (and an accountant) and allows you to add 500 contacts to the system. In addition to the Basic plan's features, you can use the software to track bills and vendor credits, add reporting tags to your transactions, and print checks.

  • The Professional plan costs $29 per month or $290 per year. It supports 10 users, up to 5,000 transactions and an unlimited number of contacts. In addition to the Standard plan's abilities, you can use the software to create sales and purchase orders and to manage inventory.

  • Additional users cost $2 per month or $20 per year. You can add extra users to your account no matter which plan you use.

  • Snail mail credits cost $2 each. If your customers prefer hard copies of your estimates or invoices and you don't want to print them out and mail them yourself, you can purchase snail mail credits and have Zoho send them for you. Mail sent to customers in the U.S. costs one credit and takes five business days to arrive. Mail sent to international customers costs two credits and takes 10-15 days to arrive.

  • Auto-scans cost $5 per month or $50 per year. This add-on feature scans the documents you upload – such as receipts or vendor invoices – and uses the data to create new transactions. It supports up to 50 scans per month. 

Although other top accounting software providers offer similarly priced starter plans, you need to consider which software has the specific features your business needs in the lowest plan or at the best price. For example, consider these three features to see how Zoho Books stacks up against other top accounting software: 

  • Contacts: Zoho Books' $9 Basic plan allows you to add 50 contacts to the system. With FreshBooks' $15 Lite plan, you can only bill up to five active clients. Xero's $9 Early plan is even more restrictive, limiting you to five invoices and five bills per month, while QuickBooks Online's $10 Self-Employed plan doesn't have a limit on this feature.

  • Billable hours tracking: You can track time and add billable hours to invoices using the Zoho Books Basic plan. FreshBooks' Lite plan can do this too, though it costs $6 more per month. QuickBooks Online's Essential plan, which costs $35 per month, offers this function. Xero's Established plan has this feature, but it costs $60 per month.

  • Inventory tracking: While you'll need the Zoho Books Professional plan to get its inventory management features, you'd need QuickBooks Online's Plus plan for this functionality, which costs $60 per month. Although Xero's Early plan has this feature and at $9 would be the best deal, it limits you to five invoices per month, so you'd probably need to upgrade to Xero's $30 Growing plan. FreshBooks doesn't support inventory at all. 

Overall, Zoho Books offers a competitive pricing plan that should meet the expectations of most freelancers or very small businesses. While some freelancers might opt for free accounting software, Zoho Books is well worth the monthly cost. 

Zoho Books Features

Accounting can be one of the most time-consuming aspects of running a business. It was no surprise, then, that the small business owners we spoke with said the most important thing they look for in accounting software is features that save them time. Zoho Books' automation and online payment features meet this requirement. 

  • Automations: Zoho Books saves you time by automating your workflow. You can set up the software to automatically perform tasks like sending recurring invoices and payment reminders, tracking expenses, and notifying you when your bills are due. You can set up bank rules to automatically categorize transactions when they're imported each day from your bank feed, and the software identifies possible matches when you're reconciling your accounts.
  • Invoicing: You can convert sales orders or estimates to invoices with a couple of clicks, edit the invoice as needed, and drag and drop lines to rearrange them. You can send them immediately or schedule them to send at a later time. The software keeps an audit trail, so you can see which transactions are linked, the user who created or changed them, and the date and time of the change.

  • Online payments: You can connect your account to popular payment gateways like Authorize.Net, Braintree, PayPal, Square, Stripe, WePay, Worldpay and 2Checkout, allowing your customers to instantly pay their invoices online. This is an efficient way for you to receive funds and keep track of paid and unpaid invoices. Plus, it gives your customers a convenient, hassle-free way to pay for products and services.

  • Mobile app: Like many accounting programs, Zoho Books has a mobile app. What makes Zoho Books' app different is that it's available on more devices than most, running on the iPhone, iPad, iMessage, Apple Watch, Android phones, tablets and smartwatches, and Windows Phones. You can manage invoices and estimates, track payments and expenses, upload receipts, run reports, and view your dashboard for at-a-glance insights. It supports multiple users, and you can control the data they're able to access.

  • Time-tracking and project management tools: These features are included on all Zoho Books plans and allow you to create tasks and track billable hours. You can bill based on project hours, task hours or staff hours or at a fixed cost. You can also budget hours per project, task or staff member.

  • Keyboard shortcuts: You can choose to type a quick shortcut to a function rather than use the menu. 

Zoho Books Pros 

One plus of Zoho Books is how easy it is to use. When we tested the software, setting up an account was simple. All you need to do is enter your business name, contact information and password, and you're good to go. Next, you select the modules you want and can opt to fill out tax information and connect your payment processing account. 

Zoho Books' dashboard has absolutely no clutter, and we easily found our way around the system using the sidebar menu, which is organized by task in a logical way. This menu collapses into icons when not in use, giving you more screen space. It offers at-a-glance views of your business's financial performance through widgets for receivables and payables with current and overdue amounts, top expenses, projects with billable hours and expenses, bank and credit card accounts, and a cash flow chart. 

To try Zoho Books yourself, consider signing up for a free 14-day trial – no credit card required. You can also learn more about this accounting software by watching the company's webinars and tutorial videos. As usual, we recommend using the free trial to better understand how the platform works and how it can benefit your business. 

Zoho Books offers one of the user-friendliest interfaces on the market, so you likely won't need the full 14 days to get a feel for the system. Two weeks is more than enough time to play with the software to see what you do and don't like about it. 

Zoho Books has a client portal that your customers can use to accept, decline and discuss estimates; view and pay invoices; and download account statements. If your work is project-based, you can share project details such as tasks and logged hours. This is a particularly helpful feature for businesses that work closely with their clients on projects. If you want feedback from your customers, you can set up the portal to allow them to review your services. 

Invoice customization is easy. Sixteen templates are available, and each allows you to choose from multiple fonts and select any color for several elements. You can add a logo and background image, select which fields to include, and edit field text. The templates allow you to choose a different display language, which is useful if you have international customers. Templates are also available for documents such as estimates, credit notes and payment receipts. This type of customization tends to benefit businesses; it's always good for branding purposes to design your solutions to look the way you like. 

Zoho has its own suite of business apps that you can connect to this accounting software, though some cost extra. It has customer relationship management (CRM) software, email marketing and social media marketing solutions, spreadsheet editors, and other productivity tools. 

Like its competitors, Zoho Books integrates with third-party productivity apps and business solutions, including Google apps, the Square point-of-sale (POS) system, several credit card processors, and tax services Tax1099 and Avalara. It also has a Zapier integration, which allows you to connect to more than 1,000 third-party apps. 

Zoho Books Cons

Although Zoho Books is packed with features, it doesn't include payroll services. This may not be a big deal for really small businesses, but it may become an important consideration if your business is growing and you plan to hire employees. 

Currently, the only payroll task you can perform on Zoho Books is preparing and printing 1099s for independent contractors using the tax services mentioned above. Again, not all small businesses will care about that limitation, but larger and growing businesses might want a solution that includes more than just the standard accounting services. 

Customer Support 

Zoho Books offers email, live chat and 24-hour phone support five days a week in the U.S., the U.K., Australia, India and several other countries. You can also find help online in Zoho Books' searchable knowledgebase and customer forums. 

When you call Zoho, you're greeted with menu options to reach different parts of the company – sales, tech support, billing and payment, or corporate – so you know you're contacting representatives in the right department. 

The sales rep we chatted with was friendly and eager to answer all of our questions about the software. There was no pressure to sign up for the service, and the rep mentioned the 14-day trial in case we wanted to give Zoho Books a test run before purchasing a paid plan. It's always nice when a customer support specialist isn't overly salesy. Zoho Books' reps seemed to genuinely care about helping users find the best accounting software for their current situation. 

Ready to choose your accounting software? Here's a breakdown of our complete coverage:

Image Credit: AndreyPopov / Getty Images
Zoho Books

Zoho Books

Best Accounting Software and Invoice Generators of 2021

The Verdict

Zoho Books is our pick as best accounting software for really small businesses. It is affordably priced and offers a simple online accounting app that lets users create and send invoices, track expenses, and seamlessly connect accounts.

Visit Site
Simone Johnson
Simone Johnson
Business News Daily Staff
See Simone Johnson's Profile
Simone Johnson is a business.com and Business News Daily writer who has covered a range of financial topics for small businesses, including on how to obtain critical startup funding and best practices for processing payroll. Simone has researched and analyzed many products designed to help small businesses properly manage their finances, including accounting software and small business loans. In addition to her financial writing for business.com and Business News Daily, Simone has written previously on personal finance topics for HerMoney Media.