The AI TillComparisons · Accounting
Comparison
Xero vs Zoho Books
Cloud accounting for invoices, bank feeds, VAT and payroll, with AI-assisted features. Accounting software with a free plan for very small businesses and paid UK plans.
| Xero | Zoho Books | |
|---|---|---|
| Price | Ignite: £18 a month. Grow: £39. Comprehensive: £55. Ultimate: £70 (all excl. VAT). Intro offers run on the pricing page. Payroll £1.50 per person. | Free: £0. Standard: £12 a month (£10 billed annually). Professional: £24 (£20). Premium: £30 (£25). Per organisation. |
| Free plan | No. No free plan; a free trial and introductory discounts are offered. | Yes. Free plan for sole traders and micro businesses. |
| Best for | Limited companies and VAT-registered businesses that want an accountant-friendly system. | Sole traders who want free accounts software in pounds. |
| Watch out for | Intro prices last six months; budget for the full price. | Check the free plan's limits on revenue and features. |
| UK notes | UK pricing in pounds; Making Tax Digital compatible. | UK pricing in pounds. |
| Made by | Xero | Zoho |
| Checked | 2026-10-14 | 2026-10-14 |
Our verdict
For most small UK businesses starting out, Zoho Books is the easier first pick because it has a free plan and its entry plan costs less. Pick Xero instead if this sounds like you: limited companies and VAT-registered businesses that want an accountant-friendly system.
UK price difference
Cheapest paid plans: Xero £18 (Ignite, per month excl. VAT); Zoho Books £12 (Standard, per month (£10 billed annually)). Zoho Books is £6 a month cheaper at entry level, though billing terms differ. Check on the provider page whether VAT is included before you buy.
Who should pick which?
- Choose Xero for: limited companies and VAT-registered businesses that want an accountant-friendly system.
- Choose Zoho Books for: sole traders who want free accounts software in pounds.
Only Zoho Books has a free plan, so you can try it first at no cost. Prices change, so check the provider's page before buying.
Other accounting to consider
QuickBooks
Cloud accounting with invoicing, expenses and VAT, plus Intuit Intelligence AI features (some in beta).
FreeAgent
UK accounting software for sole traders, partnerships and small companies.
Sage Accounting
UK accounting and payroll software with the Sage Copilot AI assistant included in every plan.
Full details
Xero tool page · Zoho Books tool page · How we check prices
Sources
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