Contacts Limit

Trying Zoho Books Basic seriously for a month. It was looking good however ... does the contacts limit really apply to the names of vendor companies attached to transactions? If so this could be a show stopper for using Zoho books. If I have to spend a lot more money per month to upgrade then Xero would be a better option, particularly for an NZ based business. So please tell me I'm wrong about the apparent limit? Cheers Ron.