- Zoho Books costs less, has a free plan and connects closely with Zoho CRM and the rest of Zoho.
- Xero is very widely used by UK accountants and includes UK payroll.
- Both support Making Tax Digital for VAT.
- If you already use, or plan to use, Zoho CRM or Zoho One, Zoho Books usually makes the most sense.
UK prices at a glance
Regular monthly prices for UK customers, excluding VAT, as published by each provider in 2026. Both sometimes run introductory offers, so check current prices before you buy.
| Zoho Books | Price per month | Xero | Price per month |
|---|---|---|---|
| Free (1 user plus your accountant) | £0 | Ignite | £18 |
| Standard (3 users) | £12, or £10 billed yearly | Grow | £39 |
| Professional (5 users) | £24, or £20 billed yearly | Comprehensive | £55 |
| Premium (10 users) | £30, or £25 billed yearly | Ultimate | £70 |
Making Tax Digital and VAT
Both Zoho Books and Xero are recognised by HMRC for Making Tax Digital for VAT, so you can keep digital records and file VAT returns directly. Zoho Books also supports the Construction Industry Scheme (CIS) on its higher plans.
Payroll
This is one of the biggest differences. Xero includes UK payroll, with a set number of payroll users depending on the plan. With Zoho Books, UK payroll is usually handled by a separate payroll provider or by your accountant. If you want payroll and accounts in one place, Xero has the edge here.
Features compared
| Zoho Books | Xero | |
|---|---|---|
| Invoices and quotes | Included on all plans | Limited on Ignite, unlimited from Grow |
| Bank feeds | From Standard | All plans |
| Multi-currency | From Professional | From Comprehensive |
| Inventory | From Professional, with advanced stock on Elite | Basic, with apps for more |
| Users | Set number per plan | No per-user charge |
| UK payroll | Separate provider | Included |
| Connection to CRM | Built-in with Zoho CRM and Zoho One | Through integrations |
Working with your accountant
Xero is very widely used by UK accountants and bookkeepers, so many will already know it well. Zoho Books lets you invite your accountant at no extra cost, and many accountants are happy to work with it. It is worth asking your accountant before you decide.
The Zoho advantage: one connected business
If you use Zoho CRM, or are thinking about Zoho One, Zoho Books fits in naturally. A won deal can become an invoice, payments show against the customer record and your sales and finance teams see the same information. With Xero, you can achieve something similar using integrations, but it is another connection to set up and maintain.
Which should you choose?
Zoho Books is likely the better fit if: you want lower costs, you use or plan to use other Zoho apps, or you want sales and finance on one platform.
Xero may suit you if: you want payroll built in, or your accountant strongly prefers it.
Moving from Xero to Zoho Books
Contacts, items, open invoices and balances can be moved across. It is best to switch at the start of a VAT period or financial year, with your accountant involved, so your records stay clean.
Day-to-day use
Both are pleasant to use. In each, you can send invoices, chase payments automatically, match bank transactions and snap receipts on your phone. Xero’s bank reconciliation is well known for being quick. Zoho Books offers a lot of automation for the price, such as payment reminders, recurring invoices and workflow rules, and a customer portal where clients can view and pay invoices.
Reporting
Both include the standard reports you and your accountant need, such as profit and loss, balance sheet and VAT. Zoho Books adds cash flow forecasting and budgets on its higher plans, and can feed Zoho Analytics for deeper reporting across sales and finance together.
Connecting other tools
Xero has a very large marketplace of connected apps, which is useful if you rely on specialist tools. Zoho Books connects natively with the Zoho family, such as CRM, Inventory, Expense and Desk, and with popular payment providers, so money in and out is tracked automatically.
Questions to ask before you choose
- Do we want payroll in our accounts software, or with a separate provider?
- Which other tools does our accounts software need to connect to?
- Do we sell in more than one currency, or hold stock?
- How many people need access, and what will that cost as we grow?
- What does our accountant prefer, and why?
How ZoSwitch helps
- We give you an honest recommendation, including when Xero is the better fit.
- We connect Zoho Books to Zoho CRM, so a won deal becomes an invoice automatically.
- We move your data from Xero or spreadsheets at the right point in your VAT period, working with your accountant.
- We train your team and stay on hand after go-live.
Got a quote from another UK agency? We will beat it.
Send us any written quote from a UK agency and we will beat it for the same work. Send us your quote.
Applies to genuine written quotes from UK-based agencies for the same scope of work, dated within the last 30 days. Excludes third-party software licences, such as Zoho subscriptions.
Talk it through with us
Book a free discovery session. We will look at your situation and give you an honest view of the best way forward.
Common questions
Is Zoho Books recognised by HMRC?+
Yes. Zoho Books is recognised by HMRC for Making Tax Digital for VAT.
Is Zoho Books cheaper than Xero?+
Yes, at most levels. Zoho Books has a free plan and its paid plans start lower than Xero’s. Check current prices, as both run offers.
Does Zoho Books include UK payroll?+
No. UK payroll is usually handled by a separate provider or your accountant. Xero includes UK payroll.
Can we move from Xero to Zoho Books?+
Yes. Contacts, items, open invoices and balances can be moved. It is best done at the start of a VAT period or financial year.
ZoSwitch is a UK team that helps businesses grow sales, save time and cut costs with the right software, websites and systems. We are a Zoho Authorised Partner. More about us.
