Zoho Books Interview Questions

Basic Zoho Books Interview Questions and Answers

1. What is Zoho Books?
   Zoho Books is cloud-based accounting software designed for small to medium-sized businesses. It helps manage finances, automate business workflows, and stay on top of receivables and payables.

2. What are the key features of Zoho Books?
   Key features include invoicing, expense tracking, project billing, inventory management, bank reconciliation, financial reporting, and tax management (including GST compliance in India).

3. How is Zoho Books different from QuickBooks or Tally?
   Zoho Books is cloud-based and integrates well with other Zoho products. Unlike Tally, it’s more user-friendly with automation and remote access. Compared to QuickBooks, Zoho Books is more cost-effective and focused on Indian taxation.

4. Can you list the different modules available in Zoho Books?
   Modules include Dashboard, Items, Banking, Sales, Purchases, Accountant, Reports, Time Tracking, Automation, and Settings.

5. What are the steps to create a new organization in Zoho Books?
   Go to Zoho Books → Click “Add Organization” → Fill in details like company name, address, currency, and tax settings → Save.

6. How do you add customers and vendors in Zoho Books?
   Go to Contacts → Click “New” → Choose “Customer” or “Vendor” → Enter required details → Save.

7. What is the difference between an estimate and an invoice?
   An estimate is a non-binding quote sent to a customer before the sale. An invoice is a formal request for payment after the service/product is delivered.

8. Can you explain how to create an invoice in Zoho Books?
   Go to Sales → Invoices → Click “New Invoice” → Select customer → Add items → Set due date and tax → Save and send.

9. What is a chart of accounts in Zoho Books?
   It’s a list of all accounts used to categorize financial transactions such as income, expenses, assets, liabilities, and equity.

10. What are journal entries and how are they created in Zoho Books?
    Journal entries are manual entries for recording debit and credit of financial transactions. Go to Accountant → Manual Journals → New Journal.

✅ Intermediate Zoho Books Interview Questions and Answers

11. How does Zoho Books help in bank reconciliation?
    Zoho Books syncs with bank accounts, allowing you to match bank transactions with recorded entries. It highlights unmatched transactions for review.

12. Can you explain how to record customer payments in Zoho Books?
    Go to Sales → Payments Received → New Payment → Select customer and invoice → Enter payment details → Save.

13. What is the purpose of credit notes and how are they used?
    Credit notes are issued when an invoice is overbilled or goods are returned. They reduce the amount the customer owes.

14. How do you track expenses and recurring expenses in Zoho Books?
    Go to Purchases → Expenses → New Expense. For recurring, click “Make Recurring” → Set frequency and duration.

15. What are recurring invoices and how do you automate them?
    Recurring invoices are auto-generated invoices at regular intervals. Set them via Sales → Recurring Invoices → New.

16. How do you handle tax settings and GST in Zoho Books (India)?
    Go to Settings → Taxes → Enable GST → Add tax rates, HSN/SAC codes, and GSTIN. Zoho Books auto-applies GST based on contact location.

17. Can you explain how inventory management is handled in Zoho Books?
    Inventory can be tracked by enabling inventory in settings. Items are created with SKU, opening stock, and reorder levels. Zoho Books updates quantities automatically with each sale or purchase.

18. How do you record a vendor bill and payment?
    Go to Purchases → Bills → New Bill → Select vendor and items → Save. Then go to Payments Made → Record payment.

19. How do you generate profit & loss and balance sheet reports in Zoho Books?
    Go to Reports → Profit & Loss or Balance Sheet → Select date range → Generate report. You can export it to PDF or Excel.

20. How is multi-currency handled in Zoho Books?
    Enable multi-currency in settings → Assign currencies to contacts → Zoho Books fetches real-time exchange rates and shows gain/loss automatically.

✅ Advanced Zoho Books Interview Questions and Answers

21. Explain the integration options available in Zoho Books.
    Zoho Books integrates with Zoho CRM, Zoho Inventory, Zoho Payroll, Zoho Projects, Stripe, Razorpay, PayPal, G Suite, and more via APIs.

22. How do you use the Client Portal in Zoho Books?
    You can invite customers to the Client Portal where they can view invoices, estimates, make payments, and leave comments.

23. What automation features are available in Zoho Books?
    You can set up workflows for tasks like auto-reminders, email alerts, field updates, and create webhooks for integrations.

24. How do you import and export data in Zoho Books?
    Go to Settings → Import/Export → Select module → Choose file (CSV/Excel) → Map fields → Import. Export works similarly.

25. What are the roles and permissions available for users in Zoho Books?
    You can create custom roles and assign permissions like view-only, create/edit, or no access for each module (Sales, Purchases, Reports, etc.).

26. How do you use the Audit Trail feature in Zoho Books?
    Audit Trail tracks all user activities including logins, record updates, and deletions. It ensures transparency and accountability.

27. How do you handle project billing in Zoho Books?
    Create a project under Time Tracking → Add tasks and timesheets → Bill clients based on hours, tasks, or milestones.

28. What steps would you take to migrate accounting data to Zoho Books?
    Export data from existing software → Format it per Zoho’s import template → Import contacts, items, opening balances, invoices, etc.

29. Can you explain how Zoho Books supports Indian GST and e-invoicing?
    Zoho Books supports HSN/SAC codes, GST rates, returns (GSTR-1, GSTR-3B), and auto-generation of IRN via government APIs for e-invoicing.

30. How do you troubleshoot syncing issues in Zoho Books?
    Check API connections, user permissions, refresh bank feeds, clear cache, re-authorize integrations, and contact Zoho support if needed.