With over 4 million global users, Xero is the most popular cloud accounting software available and is arguably the go-to platform for SMEs. However, competitors such as Zoho claim to give organisations everything that they need, with a shorter learning curve and more attractive price point than Xero.
Are they right? As the quality of your accounting software can make a significant difference to organisational success, it really pays to do your research. Here’s how the two platforms compare.
Tools
Over its 30-year history, Xero has gone from a standard on-premises bookkeeping package and has evolved into something closer to a full-spec business finance manager. As well as the standard range of accounting tools such as payroll, invoicing, and expense tracking, Xero offers advanced features such as automated bank reconciliation and data analytics, improving accuracy and saving businesses valuable time. Xero has so many tools that with the right knowledge, it can be set up to organise projects from start to finish.
Zoho is not an accounting app per se. Instead, it is part of a collection of separate products that include CRM, HRMS, and Analytics. Zoho Books, the accounting element, offers the accounting basics such as running invoices and making financial reports. However, some elements such as payroll are too simplistic for the majority of organisations.
Risk Of Human Error
Once you know what you are doing with Xero, the risk of human error is almost nil. The software will flag up errors for you, making it simple to spot discrepancies. However, the software does take time and effort to learn, and this is when mistakes can be made. Ideally, work with an experienced accountant when starting your Xero journey.
Zoho doesn’t have as many automation features or safeguards. Still largely dependent on line by line manual book keeping, you enter the data manually, so any error on your part is yours to notice and correct. The list of potential mistakes is extensive, and these can be complex and time-consuming to correct.
Support
Xero is a long-established organisation, and has an extensive, free, 24/7 customer support network, as well as an encyclopaedic online knowledge base, covering everything from bookkeeping to VAT returns. This is important, because the software is a professional-level accounting platform that can require a learning curve for users without a finance background. However, most answers can quickly be found online without much difficulty, and it’s even easier to access support for Xero when working alongside a professional accountant. They will understand your unique business needs, and therefore how to maximise your benefits from the platform.
Unfortunately, Zoho doesn’t have the same level of self-serve resources or customer service as Xero. Finding the right person to talk to at Zoho can be very difficult. As such, expect to find most of your answers on forums such as Reddit.
What Next?
Vanilla Accounting has been supporting businesses for over thirty years, and during that time we have worked extensively with Xero. To get the most out of the software, it really pays to have experience behind you, so to get started please contact one of our experienced team today.
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