Keeping your business finances in order is important for any business owner, and accounting software is a key tool to help you. But choosing the right accounting software can be difficult. In this article, we will try to point out some important differences as well as the common characteristics between Zoho books & Xero to figure out which service is a better fit for your business, as well as which features you need. When we compare two key softwares Zoho and Xero, we can say that both options will give us the basic accounting features, but each offers unique capabilities and different price points as well.
What do these two platforms have in common?
A dashboard that breaks down your data into important summaries and reports; both are Cloud-based, Time-Tracking Tool, Easy File Sharing, Bank Integration, Customizable Invoices, Payroll integration, Inventory Tools, and Available Free Trials (Zoho 14 days (extendable), Xero 30 days).
As we have already mentioned, both platforms have their own advantages. Depending on your business, needs and size of your company, in the following text, we will try to guide you through several important differences to better determine which platform is the right choice for you.
Zoho Books Advantages:
Zoho is UAE VAT Compliant.
Zoho treats all aspects of the VAT law: Bill of entries, Reverse charge mechanism, it guides you when to charge 0% or 5%, Exempt, VAT non claimable. The VAT report is similar to the FTA portal Vat return.
Multi-currency & Multi-language Support – Zoho platform is offering multi-currency and multi-language support in all their available packages, unlike Xero, which only offers it in their Premium 10 package.
Affordable Plans – Zoho has more affordable plans that start from AED 60per Month, whereas Xero has business plans beginning from AED 73 per Month.
It is possible to add additional users if you pay extra in Zoho.
Cash Flow – XERO has a unique Cash Flow feature that Zoho does not have.
Users – Unlimited
Free Trials – Xero has 30 days free trial.
Now that we have singled out a few key advantages of both platforms, we can draw the following conclusion:
If your business needs an integration that works with Xero, like maybe a manufacturing inventory software. Xero’s mobile app is also another benefit to using their service, as there are third-party integrations, they offer through their app marketplace.
Zoho books might be a better fit if you need super in-depth reporting, because they allow users to run more than 50 business-related reports. If you deal with importations, because of the VAT treatment, it will be easier to use Zoho books. It might also be better for those customers who already use Zoho for another part of their business, (Zoho CRM for example).
Whatever you choose, the most important is that you take time to do a proper set up.
If you are unsure how to do it or even if you do not even know what it means, it is better to use the services of a professional Financial Controller. It is very important to start on good basis, to be sure that you respect the laws and avoid the risks of having fines. At CTC Accounting, we have a large experience doing accounting software set up, and our Financial Business Partners will give you the best advice customized to your business.