Zoho Books is a cloud-based accounting solution that helps small to medium businesses manage accounting and track expenses, automate processes, and connect various departments.
It assists users in various accounting functions like creating invoicing, tracking expenses, managing taxes, inventory control, and report generation at a cloud level.
Features of Zoho Books
Invoicing
- Build and easily send polished bills.
- Customize invoice templates.
- Another one is the automation of regular invoices and payment reminders.
- It must consist of links to multiple gateways for online payments.
Expense Tracking
- Record and categorize expenses.
- Reasons include Tracking expenses on a per-project or client basis.
- Attach receipts for expenses.
- Set up recurring expenses.
Banking and Reconciliation
- Sync with the bank accounts to pull in the transaction information on Auto-Pilot.
- One of its major advantages is that it is easy to reconcile accounts since the transactions can be easily matched.
- Choose the bank rules that would let the system automatically classify the transactions on sight.
Inventory Management
- Manage product stocks
- Maintain real-time management of inventory.
- Place and dispatch purchase orders.
- Other prudential measures that should be set to override automatic controls are the re-order points to avoid stock exhaustion.
Project Management
- Record individual working hours or work time and other expenses in relation to defined projects.
- Charge your clients based on the levels of work done or the amount of time taken on a project.
- Share working and research projects with other disciples and customers.
Tax Management
- Calculate taxes on sales, purchases, and services more automatically.
- Deal with multiple tax rates and global taxes, including VAT and GST.
- Prepare tax accounts for filing returns.
Financial Reporting
- Prepare different reports like profit and loss accounts, balance sheets, cash flow statements, etc.
- Generate reports with settings and sub-reports based on the different aspects required.
- Allocate time, frequency, and how the reports will be shared with others.
Multi-Currency Handling
- Dealt with multiple currencies to manage different transactions.
- Monitor exchange rates and make use of them where necessary with no additional thought.
Automated Workflows
- Configure it to approve invoices automatically or when to send one or a reminder.
- Design special scenarios for given requirements.
Third-Party Integrations
- Connect with other Zoho apps (Zoho CRM, Zoho Inventory, etc. ) and familiar third-party apps such as PayPal, Stripe, G Suite, and many others.
Mobile Access
- The mobile application Zoho Books for iPhone/ iPad and Android allows users to manage their finances while on the go.
- Zoho Books is also preferred by businesses that need accounting software that has all the features needed to help them manage their business financially without complications and complexity.
Benefits of Zoho Books
The first benefit is quite apparent in this system: convenience of payments and no need for the clients to leave your website. Now they can buy products and services from any place they are while you can avoid doing such plain and monotonous work. In this case, all your repeat payments, bill reminders, and auto deductions will be processed without much effort on your side.
Zoho Books integrates all important accounting needs, and this tool can manage all kinds of transactions. With this system, your company will always be compliant with its outstanding bills and invoices, you will control expenditures to save money, and there will be no compliance hassle.
It is One of the Family Members of Zoho Suites
As if that were not enough, Zoho Books is highly integrated with Zoho Apps, which tells you that it is capable of offering you more than just accounting solutions. First of all, it will allow you to get a complete and, more or less, integrated picture of your business’s state and make better decisions subsequently.
Automates Bank Feeds
What sets Zoho Books apart is what it does to data entry – it helps you import all your bank and credit card transactions and then sort them according to your bank’s rules. This is not only time-saving but guarantees that you work without compromising on safety and general compliance.
Automates Payment Reminders
With the help of Zoho Books, you can write wonderful messages to customers requesting payment on time and preset the frequency of these messages according to your choice.
Help Engage Customers
Surprisingly, Zoho Books is filled with cooperation options, and the system guarantees that the users will not be alienated from the payment process. First, you will help them receive their estimates and invoices and make payments directly via the powerful web-based client area. Yet another convenient option for your clients is to accept/decline the given estimates and also comment on them.
Pros and Cons of Zoho Books
Pros of Zoho Books
- User-friendly interface: Zoho Books’ design is very user-friendly because it enlists features that are easy to understand for people with little knowledge of accounting. This can be useful since it can cut down on the time that is spent learning the software and help your team.
- Cloud-based accessibility: This is an internet-based solution for managing business finances; therefore, the data you input is available from anywhere in the world. This is especially helpful in work environments that require more time sitting in front of the computer and little or no interaction with colleagues or even accountants based in other branches.
- Comprehensive accounting features: A variety of accounting options are available on Zoho Books, with features such as invoicing, expense management, bank reconciliation, and reporting. Another advantage is that it also handles multiple currencies and tax legislation, thus making it favorable for international business people.
- Integration capabilities: Zoho Books is compatible with other Zoho tools and a wide range of third-party applications, allowing you to compose a unique software environment for your company.
- Affordable pricing: Another advantage of Zoho Books is that it is mid-marketed and thus affordable for small and medium-sized companies. Flexible pricing models ensure that the needs of different businesses, whether big or small, are well met, regardless of their solvency status.
Cons of Zoho Books
- Limited advanced accounting features: Zoho Books is quite powerful, but some discrete and, therefore, rather specific functions essential for large enterprises or industry verticals are limited. There may be cases when a business needs more than a simple Excel sheet and seeks more complex solutions.
- Integration complexity: Despite its integration features, some may require installation, and the process of installing it may sometimes be challenging if one is not very skilled in the technical aspects of computer use.
- Customization limitations: Zoho Books has an option for customization, although it is less numerous than in some accounting software. Some reports may be very specific, so they may not easily achieve very specific and highly targeted reports or workflows.
- Customer support response times: Real users have complained of slow response time from Zoho’s customer service department compared to the time provided by other software companies. This may impact the time it takes to address some concerns or seek help.
- Learning curve for advanced features: Unfortunately, working with the basic features is pretty simple, while getting into deeper details of the program may require training or, at least, the worker’s time. Still, users with many accounting requirements will have a massive challenge handling the software.
Why Zoho Books Is Best for Micro Businesses
It is important to underscore that not all accounting software programs currently available on the market are suitable for very small businesses. Some are complex, strong, costly, or both.
Some others have found that they need to be more suitable for meeting the needs of micro-businesses. Small businesses, which include freelancers, consultants, sole proprietorships, and those doing e-commerce and home-based businesses, need software that will suit their needs and budget and does not complicate their business.
While price is an essential factor in general, it is even more crucial for micro-businesses, so it is considered the only software that can be effective and does not cost a lot. It is an application that very small operations can use. However, it will still suit them as they grow into larger organizations, with the possibility of upgrading to bigger tiers and integrating with other pieces of business software.
Considering accounting software options and after reviewing market offers, Zoho Books can be considered the best choice for a micro business.
Zoho Books Integration
Accounting software can be problematic when implemented in very small business organizations. Some are too complex, high-powered, or expensive, and some are simply not built to cater to the requirements of micro businesses. Independent contractors, salespeople, self-employed people, and those who run e-commerce and home-based businesses need software that will suit them and is affordable and uncomplicated.
Using Zoho Books with other applications that help you manage your finances can enhance the flow of your operations. Zoho Books allows various options based on external popular applications in many spheres, such as payment systems, payroll services, online stores, customer relations management, and others. Presented below are some of the integrations that fit your business requirements.
- Payment Gateways: Most of the payment gateways, such as PayPal, stripe, or Square, can be linked with Zoho books for easy invoicing and receiving of payments into Zoho books.
- Zoho Books Integration with Zoho CRM: Your sales and finance teams may work together more effectively by integrating Zoho Books and Zoho CRM. This will enable you to manage and keep track of both your accounting records and important CRM data in one place.
- Other Integrations: Connect your Zoho Books with other third-party apps such as Slack, Twillo, and Office 365 to your services to be more efficient.
Supported Platforms for Zoho Books
The following platforms provide native applications for Zoho Books:
Mobile and Tablet
Computer and TV
Watch
Access Zoho Books
Take these actions to gain access to Zoho Books:
- Visit the website for Zoho Books: Go to Zoho Books by opening your browser.
- Sign in: On the page, click the “Sign In” button located in the upper right corner.
- Put in your login information: To log in, use your email address and password for your Zoho account. You can create a new account if you don’t already have one.
- Select your company: Choose the organization
Users of Zoho Books
Here’s a brief overview of how each group can leverage the platform:
Start-Ups
- Strategize spending as well as generation of revenues with raw or even negligible capital.
- Create value to generate financial reports for the investors and tax authorities.
- One of the ways of handling invoicing and billing is by automating it.
Small Businesses
- Errands such as submission of invoices, expenses, and taxes should be automated.
- Consult with accountants through the help of the cloud feature on Zoho.
- It is very easy to handle stocks and payments to the suppliers.
Medium-Sized Businesses
- Other applications can be linked to Zoho One to improve its business management functionality.
- Record expenditures for one or several departments or even branches.
- Automated financial planning for improved performance and future forecasting.
Non-Profits
- Maintain a track of the donations, grants, and expenditures separately to maintain the legal requirements.
- Control the spending and make statements for boards or sponsors.
- Reduce the operational complexity of the business’s records while increasing the reliability of the business’s financial statements.
Business Owners
- Obtain real-time information on operations’, the financials of a business, and its cash flow.
- From this, one can shed some light on reducing the complexity of accounting by presenting an interface that is easy to use.
- Utilize the opinion of accountants or financial advisors.
Accountants
- Ability to handle many clients ‘ accounts.
- Make tax filing and compliance easy and efficient through the incorporation of several automated functions.
- You can easily prepare group profit and loss accounts, balance sheets, and other special accounting reports.
Accounting Students
- Get hands-on experience in accounting by using the accounting software used in business environments.
- Gain practical working experience in issuing invoices, preparing financial statements, and working with taxes.
- Different business aspects should be presented through a contemporary and efficient cloud-based application – accounting.
- Every user group will be able to fully utilize Zoho Books as the platform can be modified to meet clients’ needs.
Difference Between Zoho Books and Zoho Invoice
Zoho Books and Zoho Invoice are both part of the Zoho suite. However, they fulfill separate functions in financial administration. Here’s an overview of the main differences.
Purpose
Zoho Books is complete accounting software designed to manage financial operations. It handles everything from invoicing to expenditure monitoring, bank reconciliation, inventory management, and tax compliance.
Zoho Invoice is a specialist tool for invoicing and billing. It generates and sends invoices, monitors payments, and follows up on outstanding bills.
Features
Zoho Books:
- Complete accounting suite.
- Invoice and payment collection.
- Expense monitoring, banking, and reconciliation.
- Financial statements (balance sheet, profit and loss, etc.).
- Tax calculation and compliance.
- Inventory management.
- Project and time tracking.
Zoho Invoice focuses on
- invoicing and billing.
- Payment reminders and numerous payment channels.
- Client management and spending monitoring (including bills).
- Time tracking and project billing.
- Basic financial reports (mostly invoice data).
Target Audience
Zoho Books is ideal for small and medium-sized enterprises seeking a comprehensive accounting solution to manage money and assure tax compliance.
Zoho Invoice is best suited for freelancers, service-based enterprises, and small organizations that want merely invoicing capability and do not require complete accounting functions.
Price
Zoho Books offers different price tiers based on business size and feature needs. It is a paid service, with cost determined by the amount of capability.
Zoho Invoice: Zoho Invoice is 100% free, making it an appealing solution for people who simply want invoicing tools and not accounting functions.
Integration
Zoho Books integrates with other Zoho apps, including CRM, Expense, and Subscriptions, to help manage financial and business demands.
Zoho Invoice integrates nicely with payment gateways and provides basic Zoho app interfaces, although its functionality is restricted to invoicing.
Customization
Zoho Books offers comprehensive customization possibilities for processes, reporting, and financial data management.
Zoho Invoice: Provides customization mostly for invoice templates and client communications, with few options beyond that.
Zoho Books offers comprehensive accounting, tax compliance, and financial reporting capabilities.
Alternatives of Zoho Books
The following well-liked alternatives for Zoho Books, each with a unique feature set for bookkeeping, accounting, and money management:
QuickBooks Online
- Ideal for small and medium-sized enterprises.
- Key features include payroll connection, tax computations, financial reporting, monitoring expenses, invoicing, and third-party interfaces.
- Pros: Features that are scalable, robust bank connectivity, and an easy-to-use UI.
- Cons: Advanced features are more expensive.
Xero
- Ideal for: Independent contractors and small enterprises
- Key features include payroll, inventory keeping, bank reconciliation, invoicing, and support for many currencies.
- Pros: Excellent third-party app integration, ideal for international enterprises.
- Cons: They need to be more sophisticated in reporting and analytics than their rivals.
Accounting Wave
- Ideal for: Budget-conscious small enterprises and freelancers
- Key features include payroll receipt scanning, expenditure monitoring, and invoicing.
- Pros: Free to use for the majority of functionality, with a simple UI.
- Cons: Limited advanced functionality, particularly for bigger enterprises.
FreshBooks
- Ideal for service-based enterprises and freelancers.
- Key features include time tracking, project management, expenditure monitoring, invoicing, and reporting.
- Pros: User-friendly, ideal for client-based enterprises.
- Cons: Accounting tools are limited in comparison to QuickBooks and Xero.
Limitations of Zoho Books
Zoho Books is sophisticated accounting software; however, it does have certain restrictions that may harm individual users and organizations. Here are some of the main constraints.
Limited Payroll Features
Issue: Zoho Books does not support payroll processing for all countries. One may need to use third-party connections like Zoho Payroll (available in some locations).
Impact: Businesses with employees may require additional software or manual solutions to manage payroll.
Complicated for Beginners
Issue: Those with no prior accounting expertise may find Zoho Books daunting.
Impact: Small company owners and freelancers with solid accounting experience may need help to navigate the program at first.
No Free Plan
Issue: Unlike competitors like Wave, Zoho Books does not provide a completely free edition.
Impact: Budget-conscious consumers may prefer free software, particularly for fundamental needs.
Limited Multi-Currency Support in Lower Plans
Issue: Multi-currency functionality is only available on higher-tier plans.
Impact: Businesses that operate abroad may be required to pay extra for this function, making it less affordable for small businesses.
Limited Connectors
Issue: Although Zoho Books works well with other Zoho apps, it offers fewer third-party software connectors than competitors like QuickBooks and Xero.
Impact: Companies who use a variety of non-Zoho apps may need more integration possibilities.
Inventory Management Issue
Issue: Zoho Books provides basic inventory management but needs more sophisticated capabilities such as automated reordering, batch tracking, and extensive inventory analytics.
Impact: Businesses with significant inventory requirements may require specialized software, such as Zoho Inventory, for more detailed tracking.
Fewer User Permissions
Issue: Lower-tier plans provide fewer customization options for user roles and permissions.
Impact: Larger teams or firms with complicated responsibilities may need help to maintain appropriate access restrictions.
Report Customization Restrictions
Issue: Zoho Books offers ordinary reporting; however, sophisticated report creation is limited compared to other rivals.
Impact: Businesses that require precise or highly configurable financial reporting may find Zoho Books restrictive.
Customer Service Issues
Issue: Some consumers have encountered delayed or inconsistent customer service, particularly outside of work hours.
Impact: In times of technical issues, firms may experience delays in acquiring assistance, thereby disrupting operations.
Not Suitable for Large Businesses
Issue: Zoho Books is primarily designed for small—to medium-sized organizations and may not be scalable for larger firms with complicated accounting requirements.
Impact: Large enterprises or businesses with complex financial systems may require more comprehensive accounting software, such as NetSuite or SAP.
These restrictions may be a challenge for some users, but they should be considered when using Zoho Books for your accounting needs.
Zoho Books Pricing Plans
Zoho Books provides multiple price levels to its consumers in the United States. These plans differ according to features, user limitations, and company requirements. Here’s an overview of the major price tiers:
Free Plan Cost
$0 per month
Ideal for: Small firms and freelancers with modest accounting requirements.
Key Features
- Manage up to 1,000 invoices each year.
- Support for 1 user and 1 accountant.
- Bank reconciliation, cost tracking, sales, and purchase orders.
- Basic financial reporting.
Limitations
There are no sophisticated features such as project management, multi-currency support, or automation.
Standard Plan
$20 per month.
Best for: Small enterprises that want additional features.
Key Features
- Support for three users.
- Recurring bills, automated bank feeds, and project management.
- Time tracking, multi-level approval, and up to 5,000 invoices per year.
- Basic inventory management.
Limitations
No sophisticated analytics or workflow automation.
Professional Plan Cost
$50/month
Ideal for Growing organizations that need extensive accounting capabilities.
Key Features
- Supports 5 users.
- Inventory management and tracking.
- Manage purchase and sales orders.
- Custom processes and transaction approvals.
- Annually, up to 10,000 bills are generated.
Limitations
limited user support for bigger teams.
Premium Plan Cost
$70/month
Ideal for businesses that want comprehensive accounting and reporting services.
Key Features
- Supports 10 users.
- Advanced analytics, customizable reporting, and multi-currency support.
- Integration with third-party apps and the Zoho ecosystem.
- Vendor portal and workflow automation.
- Annually, up to 25,000 invoices are sent.
Limitations
The default limit is 10 people.
Elite Plan
Cost: $150 per month
Ideal for: Larger enterprises with extensive invoicing and multi-user requirements.
Key Features
- Supports 10 users.
- Advanced inventory management, including serial and batch tracking.
- Custom domain name, landing page, and vendor portal.
- Annually, up to 100,000 invoices are issued.
Limitations
There is a user limit, and additional users incur extra expenses.
Ultimate Plan
Cost: $275 per month
Best suited for Large organizations with extensive accounting and automation requirements.
Key Features
- Supports 15 users.
- Advanced reporting using Zoho Analytics connection.
- Advanced processes, custom domains, and vendor management.
- Annually, up to 100,000 invoices are issued.
Limitations
Extra payments for additional users.
Additional Charges
Additional users: Extra users can be added for a cost, often approximately $3 per person per month.
Add-ons: Payroll and connectivity with other Zoho products may incur additional fees.
Zoho Books’ price is competitive for small and medium-sized enterprises, and tiered options allow customers to choose features based on their company’s development.
