The main difference between Zoho Books and QuickBooks Online is that Zoho Books has a free plan for companies with an annual revenue of less than $50,000. QuickBooks Online is more expensive for businesses with fewer than 15 users, but it stands out with its vast network of QuickBooks ProAdvisors, which lets you find a local bookkeeper easily if you need support. Both are great for mobile accounting, but you might appreciate the extra features in Zoho Books’ app, such as the ability to record time worked.
After carefully evaluating Zoho Books vs QuickBooks, we found that:
- Zoho Books is ideal for small businesses that need a free solution and larger companies seeking an affordable QuickBooks Online alternative with strong mobile accounting features
- QuickBooks Online is better for businesses running their own payroll or wanting easy access to a wide network of local and online bookkeepers for help when needed
We are driven by the Fit Small Business mission to provide you with the best answers to your small business questions—allowing you to choose the right accounting solution for your needs. Our meticulous evaluation process makes us a trustworthy source for accounting software insights. We don’t just scratch the surface; we immerse ourselves in every platform we review by exploring the features down to the finest nuances.
We have an extensive history of reviewing small business accounting software, and we stay up-to-date with the latest features and enhancements. Our first-hand experience, guided by our internal case study, helps us understand how the different products compare with each other and how they work in real-world scenarios.
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4.40 ★ | 4.42 ★ | |
Monthly Pricing | $0 to $275 | $35 to $235 |
Free Trial | 14 days for all paid plans | 30 days |
Discount | ✕ | 50% off for three months when you sign up without a free trial |
Advantages Over the Other |
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Ease of Sharing With External Accountants | Accountant can access your books online directly | Accountant can access your books online directly |
Scalability | Up to 15 users in the highest plan; can set up additional users for $3 each monthly | Up to 25 users in the highest plan; doesn’t allow for additional users |
Mobile App | iOS and Android; has most of the features of the desktop interface | iOS and Android; has most of the features of the desktop interface |
Ease of Use | Easy to use; is quicker to set up than QuickBooks | Easy to use, but it takes time to set up |
Support Network of Independent Bookkeepers | Very limited in the United States | Exceptional |
Average Rating on Third-party Sites | ||
Zoho Books vs QuickBooks Online Quiz
Need help choosing between Zoho Books and QuickBooks Online?
Use Cases and Pros & Cons
- Freelancers and very small businesses with a few clients: Zoho Books is free for companies with less than $50,000 annual revenue and those that require fewer than 1,000 invoices per year. QuickBooks Online doesn’t offer a free plan.
- Mobile accounting: The Zoho Books mobile app has more features than the QuickBooks Online app. For instance, it lets you record bills and bill payments, whereas QuickBooks can’t. This is one of the reasons why it makes Zoho Books our overall best QuickBooks alternative.
- Businesses using other Zoho products: Zoho Books is one of the apps within the Zoho suite. If you’re already using its other platforms, such as Zoho Expense and Zoho CRM, choosing Zoho Books is more practical because it’s easier to work with interconnected apps.
- Users needing a client portal: You can use the client portal to let customers view and manage their transactions. They can also see their accounts, accept or reject estimates, and pay invoices. In contrast, QuickBooks doesn’t have a client portal.
- Manufacturers that want to track high-value items: Manufacturing firms needing to monitor individual items rather than groups, such as consumer electronics manufacturers, can upgrade to Zoho Books’ Elite plan for serial inventory tracking.
Pros
- Offers a free plan for businesses that make $50,000 or less a year
- Has the most powerful app among all the accounting software we’ve reviewed
- Is packed with features but more affordable than most similar programs
- Integrates with other Zoho products, like Zoho Inventory and Zoho CRM
- Includes phone support in all its plans
Cons
- Supports a limited number of invoices in the Free and Standard plans
- Lacks built-in payroll services
- Doesn’t allow you to track the actual inventory used in a project when comparing it to the budget
- Has a limited network of bookkeepers familiar with the program; can be difficult to seek help if needed
- Businesses that need easy access to local bookkeepers: A remarkable feature of QuickBooks Online is that it has a vast network of QuickBooks ProAdvisors, making it easy to find a local bookkeeper in case you need one. This is one reason QuickBooks Online is our overall best small business accounting software.
- Processing your own payroll: QuickBooks Online integrates seamlessly with QuickBooks Payroll, which lets you pay employees, compute and withhold payroll taxes, and account for employee benefits in any state. Zoho Payroll is only available in New York, California, Texas, and Florida.
- Businesses with 15 to 25 users: QuickBooks Online is a more affordable option than Zoho Books if you have 15 to 25 users. Zoho is priced at $275 for 15 users while QuickBooks is only $235 for 25 users.
- Fixed asset accounting: The new fixed asset accounting tool in QuickBooks Online Advanced allows you to enter and manage fixed assets. It lets you automatically calculate depreciation for fixed assets, set up depreciation schedules, and run fixed asset reports. Meanwhile, Zoho Books has no fixed asset accounting.
Pros
- Has a huge network of QuickBooks ProAdvisors; makes it easy to find help if needed
- Is more affordable than Zoho Books for 15 to 25 users
- Offers detailed reporting, including income and expense tracking by class and location
- Is customizable to any type of business, such as ecommerce and farm
- Has payroll services through QuickBooks Payroll
- More affordable than Zoho Books for 15 to 25 users
Cons
- Doesn’t allow you to directly place a phone call to a support agent unless you upgrade to Advanced
- Offers project accounting and inventory management only in the higher plans
- Has lower tier plans, but they’re a bit more expensive than Zoho Books
Fit Small Business Case Study
We compared Zoho vs QuickBooks using our internal case study and summed up the results in the chart below.
Zoho Books vs QuickBooks Online Case Study
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Zoho Books Starting at $0; $50 per month as tested
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QuickBooks Online Starting at $30 per month; $90 as tested
User Reviews: Tie
Zoho Books | QuickBooks Online | |
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Average Rating on Third-party Sites | ||
Users Like |
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Users Dislike |
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While Zoho Books has a slightly higher rating, both platforms receive a mix of positive and negative feedback from users—which is why we consider this category a tie.
Many users like that Zoho Books has a free plan and affordable paid options. One commented that they switched from QuickBooks Online to Zoho Books because Zoho Books has the same features as QuickBooks but at a more affordable price—aligning with our evaluation. The free plan has some limitations, but we believe it’s adequate for most freelancers. However, even the paid tiers are generally more affordable than QuickBooks.
Additionally, some reviewers commented that Zoho Books has a strong mobile accounting app that allows them to track time and expenses on the go. We are also impressed with the app that we hail as our overall best mobile accounting app. Further, one user appreciates the client portal, which allows their customers to access and view their invoices and payment history.
On the flip side, a reviewer complained that Zoho Books’ interface is a bit difficult to navigate. We agree that Zoho Books has a complex user interface, as some features are hidden within menus or submenus, and hope the provider considers improving the interface in future updates. Another user wishes that Zoho Books had a fixed asset management feature.
As of this writing, here’s how Zoho Books is rated on top review websites:
We’ve read many positive comments about QuickBooks Online’s features, and among the highlights are its invoicing and class and location tracking. One user explained that the program helps them create professional-looking invoices, with the option to set up automatic reminders on overdue invoices. This is one of the reasons QuickBooks Online is our overall best invoicing software. We also applaud QuickBooks’ class and location tracking because it’s a useful tool for businesses with various departments and those that operate in multiple locations.
Unfortunately, one reviewer complained that it’s hard to seek support from a QuickBooks’ support agent. I also had a negative experience with QuickBooks’ customer service, but sometimes, I do get the right support. It appears that support varies from one agent to another, but we believe QuickBooks’ support generally needs some improvement. Moreover, one user explained that the cost isn’t worth it, especially if there are free options that can offer the features users need.
QuickBooks Online earned the following ratings on leading review sites:
Pricing: Zoho Books Wins
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 3.8 out of 5 | 4 out of 5 |
Monthly Pricing |
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Number of Users |
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Cost per Additional User | $3 per month | N/A |
Number of Invoices per Annum |
| Unlimited in all plans |
Free Trial | 14 days for paid plans | 30 days |
Free Plan | ✓ | ✕ |
Discount | ✕ | 50% off for three months when you sign up without a free trial |
While QuickBooks is slightly higher rated, we gave the Win to Zoho Books because it offers a free plan, which we believe is adequate for many small businesses. This isn’t reflected in the score because we use Zoho Books’ Sophisticated plan as the basis for this evaluation.
If you have a small business with five users and need inventory management and project accounting, you can save with Zoho Books’ Professional plan at $50 per month, compared to QuickBooks Online’s Plus at $99 a month.
Another important consideration is that Zoho Books has a low fee for adding extra users ($3 per user per month). When we do the math, a total of 15 users in the Professional plan would cost $80 per month, compared to QuickBooks Plus at $99 monthly but with only five users.
However, QuickBooks Online is more affordable than Zoho Books for 15 to 25 users. Zoho Books Ultimate costs $275 monthly for 15 users, while QuickBooks Advanced is only $235 monthly for up to 25 users. This doesn’t affect our pricing score because most small businesses don’t need that many users.
Features: QuickBooks Online Wins
While QuickBooks and Zoho Books are tied in all the categories below, we still believe QuickBooks generally has a more enhanced feature set. The accounting features are more flexible and easier to use, and the addition of fixed asset accounting in QuickBooks Online Advanced is a significant advantage.
Banking & Cash Management: Tie
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 4.6 out of 5 | 5 out of 5 |
Upload Bank Statements | ✓ | ✓ |
Connect to Bank Account | ✓ | ✓ |
Reconcile Bank Account With Bank Feeds | ✓ | ✓ |
Reconcile Bank Accounts Without Bank Feeds | ✓ | ✓ |
Print Checks | ✓ | ✓ |
Group Multiple Checks Into a Single Deposit | ✓ | ✓ |
Enter Monthly Service Fees as Part of Reconciliation | ✕ | ✓ |
Despite a few limitations of Zoho Books, we consider this section a tie. They’re both capable of importing bank transactions and reconciling bank accounts, which is what’s important for businesses. With Zoho Books, you’ll need to be sure to enter monthly service fees as a transaction prior to starting your reconciliation, but we don’t consider that a major issue.
Accounts Receivable (A/R): Tie
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 4.8 out of 5 | 5 out of 5 |
Create & Issue Invoices | ✓ | ✓ |
Customize Invoices | ✓ | ✓ |
Email & Print Invoices | ✓ | ✓ |
View Outstanding Invoices | ✓ | ✓ |
Create Recurring Invoices | ✓ | ✓ |
Accept Short Payments From Customers | ✓ | ✓ |
View Balance by Customer | ✓ | ✓ |
Calculates Sales Tax Rate Based on Customer Address | ✕ | ✓ |
Issue a Refund Check | ✕ | ✓ |
QuickBooks Online and Zoho Books are equally great in terms of A/R management. Both come with powerful invoicing features, which are far more commendable than other similar software programs. QuickBooks, unlike Zoho, allows you to refund a customer’s credit balance with a check, but this isn’t a critical need for most businesses. Hence, we consider this section a tie.
Accounts Payable (A/P) Management: Tie
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 4.9 out of 5 | 5 out of 5 |
Manage & Track Unpaid Bills | ✓ | ✓ |
Manage Vendor Information | ✓ | ✓ |
Capture Expense Receipts | ✓ | ✓ |
Set Up Recurring Expenses | ✓ | ✓ |
Enter Purchase Orders (POs) | ✓ | ✓ |
Enter a Vendor Credit | ✓ | ✓ |
Track Payments to Independent Contractors | ✓ | ✓ |
Short Pay an Invoice | ✓ | ✓ |
Apply a Vendor Credit When Paying a Bill | ✕ | ✓ |
QuickBooks Online is slightly better than Zoho Books, as some of its A/P features are easier to use. For instance, you can apply a vendor credit when paying a bill instantly, unlike Zoho Books, which requires you to enter a vendor credit on a separate screen from paying the bill.
Inventory Management: Tie
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 5 out of 5 | 4.9 out of 5 |
Create an Inventory Item | ✓ | ✓ |
Track the Cost of Goods Available | ✓ | ✓ |
View Inventory Available | ✓ | ✓ |
Track Total Units & Costs | ✓ | ✓ |
Adjust the Cost & Quantity of Inventory | ✓ | ✓ |
View Inventory on PO | ✓ | ✓ |
Record Inventory Returned Back Into Inventory | ✓ | ✓ |
Inventory Management Feature Availability | Professional and higher plans | Plus and Advanced |
Product-based businesses will find Zoho Books and QuickBooks Online reliable for inventory management. Both let you create an inventory item and manage and track inventory and make any adjustments easily, if needed.
That said, we consider this another draw. Your choice may then boil down to pricing. If you have more than five users, you might choose Zoho Books. Inventory management in QuickBooks Online Plus costs $90 per month, while it’s only $50 monthly in Zoho Books’ Professional plan—both of which include up to five users. With Zoho Books, you can add extra users for only $3 each monthly.
Mobile App Functionality: Zoho Books Wins
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 5 out of 5 | 3 |
Accessibility | iOS and Android | iOS and Android |
Create & Send Invoices | ✓ | ✓ |
Accept Payments Online | ✓ | ✓ |
Capture Expense Receipts | ✓ | ✓ |
Categorize Expenses From Bank Feeds | ✓ | ✓ |
View Reports | ✓ | ✓ |
Enter Bills & Bill Payments | ✓ | ✕ |
Record Time Worked | ✓ | ✕ |
Assign Time Worked to a Customer or Project | ✓ | ✕ |
Both have great mobile accounting applications, but Zoho Books has features you might find useful, including the ability to enter bills and bill payments and track time worked. The Zoho Books mobile app, which offers all the features of the browser-based version, is great for those who are often on the go, especially those who need to track time and bill their clients.
Ease of Use: Tie
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 4.2 out of 5 | 4.2 out of 5 |
Accessibility | Cloud | Cloud |
Shortcut Buttons | ✓ | ✓ |
Customizable Dashboard | ✓ | ✓ |
Overall Ease of Setup | Easy | Moderate |
Overall Ease of Use | Easy | Easy |
Zoho Books is a bit easier to set up, as several steps are involved in setting up a company in QuickBooks Online. However, both are generally easy to use, so we consider this a tie. Both have time-saving features, like a customizable dashboard and company setup wizards.
Customer Support: Zoho Books Wins
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 4 out of 5 | 3.8 out of 5 |
Live Chat Support | ✓ | ✓ |
Phone Support | ✓ | Callback only unless you upgrade to Advanced |
Chatbot | ✓ | ✓ |
Email Support | ✓ | ✕ |
Self-help Resources | ✓ | ✓ |
Zoho Books takes the lead because all of its paid plans allow you to directly place a phone call to a customer support agent. With QuickBooks Online Plus and the other lower plans, you have to send a request first and then wait for someone to call you. For direct phone support, you have to upgrade to the most expensive plan, QuickBooks Online Advanced.
Integrations: Tie
Zoho Books | QuickBooks Online | |
|---|---|---|
Fit Small Business Score | 5 out of 5 | 5 out of 5 |
Other Zoho apps | Native and third-party integrations | |
Payroll Integration | Third-party | Native and third-party integrations |
Time Tracking Integration | Native | Native and third-party integrations |
Electronic Bill Pay Integration | Third-party integrations | Native and third-party integrations |
While QuickBooks Online offers more extensive integration options, both have ample libraries of integrated apps that you can use to automate different workflows, including time tracking, payroll, and electronic payment processing. That said, the two programs are tied in this category.
Assisted Bookkeeping: QuickBooks Online Wins
Although not part of our case study, we evaluated Zoho Books vs QuickBooks Online in terms of assisted bookkeeping. QuickBooks Online has the upper hand, with its huge network of local bookkeepers compared to the 500 Zoho Books Advisors in the United States. This means it’s generally easier to find a QuickBooks ProAdvisor than a Zoho Books Advisor.
If you need a live bookkeeping service, you can activate the QuickBooks Live add-on within the QuickBooks Online software. Available for an additional fee, this feature gives you access to a dedicated bookkeeper who’ll own your books and manage them for you. Learn more in our QuickBooks Live Bookkeeping review.
In addition to QuickBooks Live, QuickBooks Online integrates with several bookkeeping providers. These include Bookkeeper.com, Xendoo, Bookkeeper360, Pilot, and Merritt Bookkeeping.
Another alternative is to find a local QuickBooks ProAdvisor. One of the biggest benefits of QuickBooks Online is that it’s popular and commonly used by many businesses and accountants. You won’t have any problem finding a local bookkeeper near you, and if you need a guide, see our piece on how to find a QuickBooks ProAdvisor.
Meanwhile, Zoho Books users needing assisted bookkeeping can contact an independent Zoho Books Advisor. These advisors are professional accountants, bookkeepers, and tax professionals who have completed the certification requirements set by Zoho Books. To find one, you should check out Zoho Books’ online directory of independent accountants, bookkeepers, and financial advisors.
How We Evaluated Accounting Software
We evaluated QuickBooks vs Zoho Books using our internal case study, as explained below.
5% of Overall Score
In evaluating pricing, we considered the billing cycle (monthly or annual) and the number of users.
5% of Overall Score
This section focuses more on first-time setup and software settings. The platform must be quick and easy to set up for new users. Even after initial setup, the software must also let users modify information like company name, address, entity type, fiscal year-end, and other company information.
5% of Overall Score
The banking section of this case study focuses on cash management, bank reconciliation, and bank feed connections. The software must have bank integrations to automatically feed bank or card transactions. The bank reconciliation module must also let users reconcile accounts with or without bank feeds for optimal ease of use. Lastly, the software must generate useful reports related to cash.
5% of Overall Score
The A/P section focuses on vendor management, bill management, bill payments, and other payable-related transactions. A/P features include creating vendors and bills, recording purchase orders and converting them to bills, creating service items, and recording full or partial bill payments.
5% of Overall Score
This takes into account customer management, revenue recognition, invoice management, and collections. The software must have A/R features that make it easy for users to collect payments from customers, remind customers of upcoming or overdue invoices, and manage customer obligations through analytic dashboards or reports.
10% of Overall Score
Businesses with inventory items should choose accounting software that can track inventory costs, manage COGS, and monitor inventory units.
10% of Overall Score
Service or project-based businesses should choose accounting software that can track project costs, revenues, and profits. The software must have tools to track time, record billable hours or expenses, send invoices for progress billings, or monitor project progress and performance.
4% of Overall Score
In this section, we’re looking at sales tax features. The software must have features that allow users to set sales tax rates, apply them to invoices, and enable users to pay sales tax liability.
4% of Overall Score
Reports are important for managers, owners, and decision-makers. The software must have enough reports that can be generated with a few clicks. Moreover, we’d also like to see customization options to enable users to generate reports based on what they want to see.
10% of Overall Score
Customer service is evaluated based on the number of communication channels available, such as phone, live chat, and email. Software providers also receive points based on other resources available, such as self-help articles and user communities. Finally, they are awarded points based on the ease with which users will find assistance from independent bookkeepers with expertise in the platform.
10% of Overall Score
This requires the software to allow users transitioning from other bookkeeping software to import their chart of accounts (COA), vendors, customers, service items, and inventory items. Ideally, there will be a wizard to walk the user through the import process.
10% of Overall Score
Ease of use includes the layout of the dashboard and whether new transactions can be initiated from the dashboard rather than having to navigate to a particular module. Other factors considered are user reviews specific to ease of use and a subjective evaluation by our experts of both the UI and general ease of use.
5% of Overall Score
This includes the availability of integrations for payroll, time tracking, and receiving e-payments. We also evaluated whether an electronic bill pay integration was available.
5% of Overall Score
The software must have a mobile app to enable users to perform accounting tasks even when away from their laptops or desktops. Some of the features we looked into include the ability to create and send invoices, accept online payments, enter and track bills, and view reports on the go.
7% of Overall Score
We went to user review websites to read first-hand reviews from actual software users. This user review score helps us give more credit to software products that deliver a consistent service to their customers.
Frequently Asked Questions (FAQs)
Zoho Books offers many of the same features found in QuickBooks Online at a lower price, making it a great QuickBooks alternative. It is preferable if you are a freelancer or a very small business owner who needs a free solution or an app with strong mobile accounting capabilities.
QuickBooks Online is more suitable for businesses that need a vast support network of independent bookkeepers. Companies with many employees should also consider QuickBooks as it has an integrated payroll system through QuickBooks Payroll.
If you can’t decide between QuickBooks and Zoho Books, then you may consider alternatives, such as FreshBooks and Wave. You may also check out our evaluation of the best small business accounting software for additional recommendations.
Bottom Line
When comparing Zoho vs QuickBooks, Zoho Books offers many of the same features available in QuickBooks—but with more affordable plans and an unbeatable mobile app. However, if price isn’t an issue and you want easy access to a local bookkeeper who can provide accounting support for your business, then QuickBooks Online may be the better option.
