What is Zoho Books?
Zoho Books is a cloud-based accounting and invoicing software for small to medium-sized businesses. It offers a free trial account, credit card processing, and the ability to invoice clients with short sales cycles. Zoho Books has features that allow you to track income, expenses, and sales tax. Additionally, it allows users to create quotes, sales orders, and purchase orders within the system.
The software also provides support for other modules such as Zoho Projects (project management), Zoho CRM (customer relationship management), and a suite of collaboration tools including document management, online chat, and videoconferencing.
Analysis of the product
The key objective in any business is to make profits; it’s important as a business owner to ensure that your earnings are calculated correctly and recorded accurately. The ability to track where all your money comes from and goes is crucial for protecting yourself and your investments, as well as helping you grow your business.
To assist with this tracking, Zoho Books offers an accounting package with accounts payable functionality which allows businesses to record their receivables on credit terms, set up a payment schedule, manage invoice payments by customers and eliminate bounced check issues.
This makes it easy for companies that have cash flow problems because clients can pay overtime but then when a customer stops paying you can still invoice them through Zoho Books and get your money in a timely manner.
In addition to accounts payable, Zoho Books offers invoicing capabilities. To create an invoice, the software asks for information such as a customer name, address, company, and email. This information is converted into an invoice which is attached to a customer account file so that whenever a client makes an online payment or sends back a check it can be applied automatically.
The invoicing tool also allows businesses to send out mass-produced invoices at different due dates based on when they received the purchase order or quote request from their clients.
Additionally, there is support for sales tax in this module which means that as soon as you enter your purchase orders and generate your sales invoices, the system automatically calculates your sales tax, totals it up, and adds the amount to the invoice.
This is an extremely time-saving feature for companies that have to deal with sales taxes because they don’t have to manually calculate them separately on every invoice and can stay organized by not having incorrect information in their records.
Inventory Management Integrated With Zoho Inventory
One of the key functions offered by Zoho Books is inventory management which allows users to manage all their stock levels so they know when they need to reorder products from their suppliers or make sure there are enough spare parts available if a product needs repairs or maintenance.
By integrating this in with accounts payable, users can record purchases of products and stores can do direct debits for any payments made against outstanding invoices.
Tracking Project Hours
Zoho Books software integrates time and billing to track a user’s project hours, as well as adding in estimates for jobs they’re working on, so when the job is complete an invoice can be issued.
This makes it easy for clients because if they want to get paid for a particular job you can just invoice them directly through Zoho Books so you can avoid sending multiple invoices at different times to collect payment from the client and then having to chase payments down later.
Easy For Team To Collaborate
One of the core components of Zoho Books is team collaboration which makes it easy for employees or small business owners who are managing projects together to work in the same workspace. This means that everyone involved can access documents whenever they need them, chat with each other, make comments and then approve or reject changes made to the document.
Detail Financial Reports
It offers reporting functionality that provides a detailed report of company income, expenses, and tax deductions so users can see how their business is doing.
Additionally, there are several add-ons for Zoho Books that extend the core functionality including support for accounting in different currencies, inventory management with barcode scanning capabilities, integration with third-party applications such as QuickBooks and Xero, and email notifications that tell you when certain events occur in your account like a payment being received or an invoice being issued.
Not only does Zoho Books allow you to efficiently organize your funds, compute tax payments and compile reports, but they also ensure the security of your business information through bank-level data encryption.
To ensure there are no financial losses due to hackers, there are also protective measures such as a login password, a secure firewall (SSL), and the ability to set up two-factor authentication which means you need something you know (the password) and something you have (the physical device such as a phone with SMS codes). Because of this feature, users can be guaranteed that their business finances are completely safe when they use Zoho Books.
Pros and Cons
The main strengths of this program include ease-of-use which means anyone can learn how to use it quickly with no extra training needed, seamless integration with other applications that greatly reduces redundant data entry effort, and the number of features available on their ecosystem of business apps which is around 10 times more than some competitors.
One user, who is a developer of an online marketing agency, has said that the software is very easy to use – even better than QuickBooks – while another says that Zoho Books is less expensive than Xero so they prefer using it because of its lower cost and ability to manage multiple accounts.
The main weaknesses are lack of audit trail options meaning it’s not possible to track changes made within a company over time and no integration with third-party tax software such as ProSeries, Lacerte, CCH ProSystem, etc…
Other criticism about this system seems to be from people whose businesses have grown beyond what the program offers them because some users complained that you can’t easily perform some function as smoothly as Quickbook.
The bottom line
Zoho Books makes accounting software easy for even small businesses in order to stop them from falling behind on their finances because they don’t need to worry about installing anything extra or integrating it with multiple other platforms.
The idea behind Zoho Books is that it’s designed specifically for small businesses who may not have their own accounting department or much experience using such systems so they won’t need to waste time learning how to use it properly and can instead get straight into running their company without worrying about their finances.
Zoho Books can be used for small businesses, online sellers, or contractors who are just starting up to manage their books and invoicing in a simple way, but it’s also suitable for larger enterprise-scale companies which need an easy yet effective accounting solution.
So, if you’re looking for a simple accounting solution that will keep track of your income and expenses and potential to ingrate to more than 40 apps in the Zoho ecosystem for a fraction of the price, Zoho Books is probably the best out there right now.
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