For small businesses and freelancers looking for a comprehensive accounting platform, Zoho Books is often a top contender. Known for its ease of use and robust feature set, Zoho Books competes head-to-head with other major financial software solutions in the market. But one of the most common questions business owners ask is: Is Zoho Books free to use? The answer requires some explanation as the platform offers various pricing tiers, and there is a free version available—but with specific conditions.
TLDR (Too long, didn’t read)
Zoho Books does offer a completely free version for small businesses with annual revenue below a certain threshold, specifically for businesses in select countries. This free plan includes many core features of the platform, making it highly functional for very small businesses or freelancers. However, if your operations require advanced features or if your annual revenue exceeds the criteria, you will need to upgrade to one of the paid versions. Understanding whether the free version meets your needs depends largely on the size and complexity of your financial activities.
What is Zoho Books?
Zoho Books is an online accounting software designed for small to medium-sized businesses. Part of the Zoho suite of business tools, it provides a wide range of functionalities including invoice management, expense tracking, bank reconciliation, project billing, and tax compliance. It competes with other popular accounting tools like QuickBooks and Xero but distinguishes itself through seamless integration with Zoho’s other business applications.
Does Zoho Books Offer a Free Version?
Yes, Zoho Books does offer a free plan, but it comes with specific eligibility requirements. As of the latest data:
- The free plan is available only for businesses with an annual revenue of less than ₹25 lakhs (approx. $30,000 USD).
- It is limited to users in India, although this may change as Zoho continues to expand its offerings internationally.
- The free version is designed primarily for microbusinesses, freelancers, and solo entrepreneurs.
This restriction to India-based businesses might be disappointing to international users, but Zoho has stated intentions to potentially widen the availability of the free plan in the future.
Features Included in the Free Plan
Despite being free, Zoho Books is not stripped of important features. In fact, the plan offers:
- Invoicing – Create and send up to 1,000 invoices annually.
- Expense Tracking – Categorize expenses, upload receipts, and automate recurring costs.
- Bank Reconciliation – Sync with your bank account for accurate transaction records.
- GST Compliance (for Indian users) – Automatically apply GST to your transactions and generate reports.
- Customer and Vendor Management – Maintain records for up to 1,000 contacts.
- Mobile App Access – Perform all accounting activities via iOS and Android devices.
This makes the free plan more than just a trial; it’s a viable long-term solution for qualifying small businesses.
Limitations of the Free Plan
While the free version of Zoho Books is generous, it does have some limitations when compared to the paid plans:
- Single User + 1 Accountant – Doesn’t support teams or larger accounting departments.
- Limited integrations – Only basic integrations are offered; more advanced third-party apps are restricted to higher plans.
- No Project Management – Project tracking, task costing, and timesheet functionalities are part of the premium tiers.
- No Stock/Inventory Management – Essential for product-based businesses but absent in the free version.
These limitations may not affect freelancers or small service providers, but any business scaling up operations may need additional features.
Paid Plans: When and Why to Upgrade
Zoho Books offers several paid tiers: Standard, Professional, Premium, Elite, and Ultimate. The plans differ in terms of users, features, and integrations. Businesses should consider upgrading when they:
- Need to manage inventory or multiple warehouses.
- Want to collaborate with larger teams.
- Require advanced analytics and automation.
- Handle projects, timesheets, and retainer invoices.
Prices for these plans vary by region, but typically start around $10/month for the Standard Plan if billed annually. Zoho often offers discounts for annual subscriptions, making it more cost-effective for long-term users.
How Does Zoho Books Compare to Free Alternatives?
If you don’t qualify for Zoho Books’ free plan, there are alternative free accounting software options to consider:
- Wave Accounting – Free and available globally, Wave is ideal for freelancers and small businesses.
- SlickPie – A web-based accounting platform with key invoicing and expense tracking features.
- GnuCash – Open-source and desktop-based, better for users with basic accounting knowledge.
However, these platforms typically lack the seamless integration and long-term scalability that Zoho Books offers, especially if you’re already using other Zoho apps like Zoho CRM or Zoho Inventory.
The Value of Zoho Books’ Ecosystem
One of Zoho’s strongest selling points is its wider suite of business tools, including:
- Zoho CRM – Customer Relationship Management
- Zoho Inventory – Inventory control and order management
- Zoho Projects – Project planning and collaboration
Being part of this ecosystem allows for end-to-end business automation, something most competitors fail to offer in an integrated environment.
Who Should Use the Free Version?
The free version of Zoho Books is best-suited for the following user types:
- Freelancers and consultants with simple income and expense tracking needs.
- Solo entrepreneurs who serve a small client base and don’t manage inventory.
- India-based startups with revenue under ₹25 lakhs who want to stay GST compliant.
For these users, Zoho Books’ free plan can manage nearly all financial aspects without the burden of monthly fees.
Conclusion: Is Zoho Books Free to Use?
To summarize, Zoho Books is free—but conditionally. The free plan is a full-fledged accounting solution for Indian businesses under a certain revenue threshold. For others, or for businesses requiring more complex functions, the paid plans offer excellent value and scalability. Businesses already invested in the Zoho ecosystem will find even more value due to seamless integration with Zoho’s product lineup.
If your business qualifies for the free plan, it’s a no-brainer to take advantage of Zoho Books’ offerings. If not, the platform still remains a strong investment due to its affordability, depth of features, and long-term growth potential.
