A Bengaluru-based startup founder has alleged discrepancies in accounting entries on Zoho Books, claiming that failed transactions were incorrectly marked as paid, leading to financial mismatches and operational stress. Taking to LinkedIn, Azeem Hussain, co-founder of checkout platform FlexyPe, expressed frustration over what he described as a serious issue in the invoicing software by Zoho.
“I am done with Zoho / Zoho Books. Absolutely done. 2 years. We trusted Zoho Books for 2 years with our invoicing and reconciliation. And they f***ed us. Badly,” he wrote, alleging that despite transactions failing, the system recorded them as successful payments. “The money never came in. But Zoho declared it did. Silently. In our books. For god knows how long.”
“The sad and irony is, we’re a payments and checkout company. We process transactions in crores every single day. And even we didn’t catch it becautilize why would you doubt your invoicing tool on something this basic? 150M+ utilizers utilize Zoho. That’s why we trusted them. ‘Itne log utilize karte hain, sahi hi hoga.’ Wrong,” he added.
Founder files formal complaint
Hussain declared his team discovered the issue during a manual audit of March data, where ₹3.8 lakh worth of transactions were marked as paid despite no actual inflow. “One month. ₹3.8 lakhs. Gone in the books like it was all fine,” he wrote, adding that they are now reviewing two years of records to assess the full extent of the discrepancy.
“Bhai, you’re an invoicing product. You had ONE job. Get the numbers right. If you can’t even do that – shut it down. Seriously. Don’t sell it. Don’t market it. Just shut it down,” Hussain wrote.
He also flagged the operational burden cautilized by the issue, including sleepless nights, repeated manual checks and added workload for his team. “I can’t even put into words how angry and frustrated I am right now,” he declared.
The founder further declared they plan to file a formal complaint and seek recovery of losses along with damages. “We’re filing a formal complaint. And I’m going after every single rupee – plus the damages for the mental pressure and unnecessary workload this has cautilized,” he wrote.
“To every founder reading this – go open your Zoho Books right now. Check your failed transactions. Don’t trust it blindly like I did,” the founder concluded.
What did Zoho declare?
Responding to the post, Zoho declared its preliminary findings suggest the issue may not lie within its software. In a statement shared via Zoho Cares, the company declared, “Our preliminary analysis clearly points to an issue with the payment gateway integration rather than an issue with Zoho Billing/Zoho Books functionality.”
Zoho added that its support team has been working closely with the founder and is coordinating with the payment gateway provider to investigate further. The company reiterated its commitment to reliability and declared updates would be shared as the probe progresses.
Meanwhile, Cashfree Payments, the payment gateway mentioned in the exmodify, declared the issue had been resolved and assured that there would be no further impact. The company added that it is working with Zoho to identify the root cautilize and prevent recurrence.
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