Techaisle Blog

The accounting industry stands at a critical juncture. Small and mid-sized businesses (SMBs) and the accountants and bookkeepers who serve them are navigating a complex landscape defined by talent shortages, mounting regulatory pressures, and persistent economic uncertainty. In this environment, the traditional role of accounting software as a mere system of record is no longer sufficient. The market demands a shift towards a system of intelligence—one that not only records transactions but automates workflows, anticipates needs, and delivers actionable insights.

At its recent Xerocon Brisbane event, Xero articulated its response to this demand with a series of announcements that signal a profound strategic evolution. Moving beyond incremental feature updates, Xero unveiled a cohesive vision centered on a supercharged AI financial agent, a unified partner platform, and strategic acquisitions to bolster its payments ecosystem. This is not just about making accounting easier; it is about fundamentally reimagining the nature of financial management for SMBs and redefining the value proposition for their advisors.

The AI Superagent: JAX's Evolution from 'Just Ask' to 'Just Done'

The centerpiece of Xero's future vision is the evolution of JAX (‘Just Ask Xero’), its AI business companion. Xero is moving JAX from a "just ask" tool to a "just done" financial superagent, built on an agentic AI platform. This is a critical distinction. While many vendors are adding conversational AI interfaces, Xero's ambition is to create a system that proactively automates manual, repetitive tasks across bookkeeping, tax, payments, and reporting.

As an industry analyst, I attend numerous briefings where vendors discuss their commitment to the small and midsize business (SMB) market. The narrative is often similar, focusing on simplified features or tiered pricing. However, Zoho's recent SMZ analyst event offered a perspective that was profoundly different. It was not just about selling software; it was a cohesive, long-term philosophy for empowering businesses from the moment of conception. With a staggering 40% year-over-year growth in its global customer base in the first half of 2025, it is clear this philosophy is not just resonating – it is thriving. Zoho is proving that to truly serve the SMB market, one must be a partner in their entire lifecycle, from a simple idea to a flourishing enterprise.

The "SOHO" Soul of a Global Powerhouse

To understand Zoho's strategy today, one must look at its origin. The name "Zoho" itself is a nod to "SOHO," or Small Office/Home Office. This was not just a clever marketing acronym; it was the foundational principle of the company. From its earliest days, Zoho has focused on building tools for the smallest of businesses, understanding their unique constraints and aspirations. While the company has grown into a global technology giant with a vast portfolio of enterprise-grade applications, it has never lost this SOHO soul. This heritage provides Zoho with an authenticity that few competitors can claim. It is not an enterprise company scaling down; it is an SMB-focused company scaling up, and that distinction is critical to its success.

The Four Pillars of a Resonating Strategy

During his keynote, Raju Vegesna, Zoho's Global Chief Evangelist, articulated the strategy that is driving this impressive growth. It is a strategy built on four core tenets that align perfectly with the needs of modern SMBs.

Spreadsheets and ledgers are essential tools for managing finances during the early stages of a business. However, as businesses grow and the number of customers and vendors they interact with increases, even basic tasks like tracking money coming in and going out can become tedious and time-consuming. Recording and analyzing financial data becomes more complex, requiring more than just sorting through spreadsheets and paperwork. This is where accounting software comes in handy. Instead of relying on manual processes, businesses can automate many tasks and streamline their operations.

One such cloud accounting platform is Zoho Books, which offers comprehensive features designed to simplify accounting processes and improve financial management. Zoho Books makes managing finances easy with intuitive invoicing, expense tracking, and bank reconciliation interfaces. It also automates tasks like creating recurring invoices, sending payment reminders, categorizing expenses, reducing errors, and ensuring timely transactions.

Since its launch in 2011, Zoho Books has become one of the top five products in the Zoho suite and has established itself as a significant player in the accounting software market.

Zoho Books’ Competitive Edge

Zoho Books is known for its user-friendly design, featuring an intuitive interface that is accessible to both accounting professionals and business owners with limited financial knowledge. This allows users of all backgrounds and experience levels to manage their finances efficiently.

In addition to its user-friendly design, Zoho Books has a global focus, offering over 14 customized versions for different countries and an international edition. This enables businesses to effectively manage their financial operations while adapting to the unique characteristics of their local market.

Customization is another critical benefit of Zoho Books. Recognizing that every business has unique needs, the platform allows users to tailor their workflows, reports, and templates to fit their specific requirements. This enhances the user experience, improves efficiency, and streamlines business processes.

Zoho Books also offers value through its cost-effectiveness, with free plans for businesses with annual revenue of less than US$50,000 and six competitive pricing plans, making it an attractive solution for businesses of all sizes.

Techaisle’s most recent survey data shows that the adoption of artificial intelligence (AI) is likely to increase by 79% within small businesses, 63% in core-midmarket firms, and 53% in upper-midmarket firms. AI has become a priority for 41% of small businesses, 75% of core-midmarket firms, and 79% of upper-midmarket firms. ChatGPT and Large Language Models (LLMs) have recently become the topic of conversations and business usage. When ChatGPT comes up in conversation – especially a discussion focusing on SMBs – the first question will likely be, “How many organizations are using it – and how?” Techaisle extended its artificial intelligence survey to pose the same question to 1872 SMBs. Both small and midmarket businesses forecast a substantial rise in the use of ChatGPT in the next one year. 17% of small businesses, 39% of core midmarket firms, and 79% of upper midmarket firms plan to use systems/tools/other products that embed ChatGPT. Results indicate that ChatGPT penetration within the midmarket, driven primarily by firms with more than 250 employees, will be reasonably robust. However, Techaisle feels that the planned adoption data is likely conservative.