Xero vs Sage Business Cloud Accounting
Which Is the Right Choice For You?
Last Updated: By TRUiC Team
Deciding which type of accounting software is best for your business can be challenging, especially when they offer so many similar core features. It’s for this reason we put together comparison reviews to help you make those subtle distinctions.
In this Xero vs. Sage Business Cloud Accounting comparison, we’ll go over similarities, differences, popular features, pricing and more to give you a well-rounded and informed perspective. So without further adieu, let’s get started!
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Xero & Sage Business Cloud Accounting Commonalities
Xero and Sage Business Cloud Accounting have some fantastic features, tools and capabilities in common. For example, 3rd party integrations with all kinds of helpful apps/widgets and time tracking functions so you get paid correctly. Here’s a brief list of some others:
1) Reminders: Easily set up reminders for scheduled bills and payments.
2) Cloud-Based: Access your account from anywhere with an internet connection.
3) Prepared Financial Reports: Keep an eye on your business financials with automatically generated reports including balance sheets.
4) Simplicity: Both designed to be easy to use and adjust to for non-accountants.
5) Customizable Invoices: Personalize invoices with your brand logo and send them out in minutes.
6) Bank Integration: Connect with your business accounts to easily sync income and expenses.
And let’s not forget about their collaboration features which allow you multiple-users so you can keep things tidy with your accountant, or team members, employees, etc. That being said, let’s talk differences.
Where They Differ
- Since many of their customers have worked with QuickBooks in the past, they offer a free conversion tool to help you easily import data data over.
- Using their Inventory tools you can create, track and manage specific items.
- Easily browse vital information on your business with a quick glance at their user-friendly dashboard.
- Xero has payroll and timesheet capabilities. Sage Business Cloud Accounting doesn’t.
Sage Business Cloud Accounting
- Sage Business Cloud Accounting allows for more customization on estimates and quotes than Xero has.
- In general, Sage Business Cloud Accounting users feel they provide better customer support.
NOTE: Be aware of the integrations you’ll need, because while Xero works with plenty of other platforms like PayPal, Stripe, MailChimp, etc., SageOne is rather limited.
It really comes down to how extensive you need your business accounting software to be. Both are great for freelancers and startups, but with Xero there’s much more going on. Maybe you need that complexity, or maybe you don’t. Now let’s jump into pricing to get down to the numbers.
Pricing & Packages
Right off the bat, Sage Business Cloud Accounting is the more cost-effective option. Their intro package is a tad cheaper than Xero’s Starter package, and their mid-range package is significantly less than the Xero equivalent.
Xero offers more features per package, and as a whole, is a more robust system. But there are a few more details to keep in mind:
- If you’re looking for payroll capabilities, Xero’s the one for you. We’ve done some deep digging on this issue and found that unfortunately, Sage Business Cloud Accounting doesn’t offer any 3rd party apps with payroll functions.
- For bigger options, we’d recommend looking into some of Sage’s more robust systems. Sage Business Cloud Accounting's parent company has over 10 different types of accounting software, with a laundry list of different features.
- Xero offers a free 30-day trial so you can test out all of the features they have to offer before committing to any package or subscription.
Another thing to keep in mind is that Xero’s starter package can be limiting at times. They charge by the volume of bills and transactions, so you’re only allowed 5 bills, 5 invoices and 20 transactions.
That being the case, you might consider their Standard package that offers unlimited bills, invoices and transactions.
In addition to our research on products and pricing, this wouldn’t be a proper comparison if we didn’t include customer feedback. We’ve collected ratings from TrustRadius (TR) on both of these accounting software companies, so you can see for yourself how they stack up.
Xero has one of the highest ratings in the industry, with a score of 8.9 out of 10, based on over 125 reviews.
Looking at the TR ratings summary, most reviewers are likely to recommend and renew their subscriptions, and they praise Xero’s availability, performance and product scalability.
Sage Business Cloud Accounting on the other hand, hasn’t gotten as much buzz...yet. Their group of around 25 reviewers have given their platform a 6.5 out of 10, so above average.
While their overall rating wasn’t as shining as Xero’s, they did get identical scores in performance and very high marks in support and usability. Even their online training and education got one good solid rating. Will be nice to watch these numbers grow over time.
Which Is Ideal For You?
The trick is to make a list of crucial features so you find the best fit for your specific needs. But in general, we recommend Xero (try it free) to the vast majority of our readers who need the more complex features and functions.
If you’d like to learn more about Xero, click the links below to be taken to their website or continue your research. Cheers!
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