Zoho Books

What it is

Zoho Books is accounting rather than invoicing alone. Invoices, quotes, expenses and journal entries sit on top of a proper ledger, with bank reconciliation matching statements against records, more than 50 financial reports including profit and loss and balance sheet, and inventory tracking on higher tiers.

It also handles the compliance detail that matters in practice: VAT management, standard charts of accounts, and XML export for electronic invoicing formats such as XRechnung and ZUGFeRD.

Who it's for (and who it isn't)

It fits a small business that has outgrown invoicing-only tools and needs books an accountant can work in, without paying enterprise accounting prices. The free plan covering 1 user plus 1 accountant, with unlimited invoices, is a genuinely complete starting point for a freelancer or a very small company.

It is a weaker fit if all you need is to send invoices and get paid, where Zoho Invoice is free and simpler, or Wave if you want bookkeeping without the suite. It is also worth checking local fit: accounting rules and your accountant's preferred software are country-specific, and fighting your accountant's workflow costs more than the subscription saves.

Pricing

Zoho Books is freemium. The free plan is EUR 0 for 1 user plus 1 accountant, with unlimited invoices, quotes, expenses and journals, automatic receipt scanning and online payment acceptance, though add-ons other than document scanning are not supported. Professional is EUR 40 per month, or EUR 30 billed annually, for 5 users and 10,000 invoices per year. Premium is EUR 60 per month, or EUR 50 annually, for 10 users and 25,000 invoices. Elite is EUR 200 per month, or EUR 170 annually, and Ultimate is EUR 400 per month, or EUR 330 annually, for 15 users. Prices as shown here were quoted in euros.

User count is what moves you up the ladder rather than invoice volume, since even Professional covers 10,000 invoices a year.

Set it up

Official guide: Welcome Guide

1. Create a Zoho Books account on the Free plan (EUR 0, for 1 user plus 1 accountant). Zoho Books sets your base currency, the main currency of your books, during sign-up. Have your business name, address and invoicing currency ready. You now have a Zoho Books account.
2. Click Settings in the top-right corner, then "Profile" under Organization. Fill in "Basic Details", "Address Details" and "Regional Settings" (base currency and fiscal year, the 12-month period your books run over). Click "Save". Your details now appear on invoices and emails.
3. Add your first customer. Click "Quick Create" in the Contacts module, enter the customer's details, and set "Contact Type" to Customer. Save the contact. The customer is now in your contact list.
4. Click "Quick Create" in the Invoices module on the Sales tab. On the New Invoice page, fill in Customer Name, Invoice Number and Invoice Date, and add the items you bill. Check the amounts, because "Save and Send" emails the invoice to your customer straight away. Click it. Your invoice is now on its way.
5. When the customer pays, open the invoice and click "Record Payment". Enter the amount received, the payment date, the payment mode and the "Deposit To" account, then click "Record Payment". The invoice now shows as paid.
6. Click "Quick Create" in the Expenses module on the Purchases tab. Enter the date, expense account, "Paid Through" account and amount. Attach the receipt and click "Save". The expense is now in your books.
7. Share your books with your accountant. Go to Settings, then Users, click "Invite User", enter their name, email and role, and click "Send". This gives them access to your books. The Free plan includes 1 accountant; any other person you invite needs the Professional plan (EUR 40/mo or EUR 30 billed annually, for 5 users). The invitation is now sent.

When this works, you have sent and recorded your first invoice, logged an expense with its receipt, and your accountant can see the same data you do.

On Professional (EUR 40/mo or EUR 30 billed annually): 5 users and 10,000 invoices per year.

Strengths and limitations

The strength is real accounting on a free tier. One user plus an accountant with unlimited invoices, reconciliation and reports removes the usual reason small businesses postpone proper bookkeeping.

The limitations are the user ladder and the suite. The jump from free to Professional at EUR 40 per month arrives as soon as a second person needs access, add-ons are restricted on free, and the natural path leads deeper into other Zoho products. Local accounting practice also varies, so confirm with whoever files your returns before committing a year of records to it.