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Zoho was founded in India in 1996 and has a suite of business software that includes over 50 apps. Among the apps are Zoho CRM, Zoho Inventory, and Zoho People in addition to Zoho Books, its accounting software. Zoho Books has a free plan (for businesses doing less than $50k per year) and pitches a tight integration with its suite of additional software. However, it lacks some of the functionality of our recommended tools (QuickBooks and Xero) which can make routine tasks clunky and time consuming. It also has fewer integrations with third-parties than our recommended tools which will force you into the Zoho app ecosystem for better or worse (likely worse). This will make it more difficult to scale with your business than our recommended tools. Finally, fewer accountants will be familiar with its software compared to our recommended tools.
Zoho was founded in 1996 by Sridhar Vembu and Tony Thomas in Chennai, India as a software company called Vembu Software. It was started from a modest apartment in the outskirts of Chennai. After initially focusing on network management software, the company rebranded as AdventNet in 2005 and then Zoho Corporation in 2009 as it shifted its focus to cloud-based business software. Zoho was bootstrapped by the founders without any external funding and grew to become a major player competing with companies like Microsoft and Salesforce, generating over $500 million in revenue by 2016. Throughout its growth, Zoho has stayed true to its roots in India, hiring and training young talent. Zoho is an impressive story of a company that was able to build a global SaaS company from India all while staying bootstrapped.
Zoho Books pricing 💰:
Zoho has a whopping six different pricing plans ranging from free to $275 per month on the high-end. It’s a bit confusing at first, but it makes it more likely that you will only pay for what you need, which we love.
Free - Supports 1 user and 1 accountant. Includes all the basics needed to manage your books. Support is email only.
Standard - $20 per month. Supports 3 users. Includes bank feeds, bulk updates, and custom views and fields. Also included is more support email, voice, and chat.
Professional - $50 per month. Supports 5 users. Includes bills, purchase order and approval support, and automatic exchange rates and basic multi-currency handling.
Premium - $70 per month. Supports 10 users. Includes vendor portal, budgeting, and validation rules.
Elite - $150 per month.Supports 10 users. Includes advanced inventory controls (warehouse management, serial number tracking, batch tracking etc.)
Ultimate - $275 per month.Supports 15 users. Includes advanced analytics (real-time reports, customized reports and dashboards, and support for 5 million records / rows)
Zoho Books is cloud based accounting software designed for small and medium size businesses.
Why is Zoho Books better than Excel?
Zoho Books has many advantages over excel:
Pre-built integrations that you would have to build manually in Excel.
Much better audit trail than Excel, so you can track who is making changes to your books.
Many more checks to prevent you from accidentally making a mistake in your books
Pre-built reporting tools to make sense of your financial data
Excel is okay to launch your eCommerce business, but we recommend switching to a proper accounting tool once your business scales beyond around $100k in annual revenue.
Can Zoho Books import QuickBooks?
Yes, Zoho can import QuickBooks data, but we don’t typically recommend it. Zoho and QuickBooks structure their data differently and the import from QuickBooks will require time and effort. Typically accountants will charge a couple of thousand dollars to assist the transition from one to the other.
Do I need a bookkeeper if I use Zoho Books?
You don’t NEED a bookkeeper since Zoho is user-friendly enough for most users, but we typically recommend one so that you can focus on product and marketing while someone else spends time keeping your books up to date.
Is Zoho good for eCommerce?
Zoho definitely works for eCommerce, however, we don't recommend it. We think there are better alternatives (Xero and QuickBooks) that will integrate with more third-party apps without restricting you to the Zoho ecosystem of apps.
Does Zoho work with Shopify?
Zoho Inventory has a direct integration with Shopify, but Zoho Books does not. You will have to use Zoho Flow (their Zapier competitor) to integrate Shopify with Zoho Books.
Is Zoho ISO 27001 certified?
Yes, Zoho is formally ISO 27001, ISO27017 & ISO27018 certified.
Is Zoho SOC 2 compliant?
Yes, Zoho is SOC 2 Type II compliant.
Is Zoho PCI compliant?
Yes, Zoho is PCI compliant.
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