Xero vs Sage Accounting

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Our analysts compared Xero vs Sage Accounting based on data from our 400+ point analysis of Accounting Software, user reviews and our own crowdsourced data from our free software selection platform.

Sage Accounting Software Tool

Product Basics

Xero is a cloud-based accounting software designed for small businesses. It streamlines bookkeeping tasks like invoicing, expense tracking, bank reconciliation, and payroll, all accessible from any device. Xero boasts user-friendly interfaces and automated features, saving time and simplifying financial management. Popular features include online invoicing with reminders, bank feeds for automatic transaction import, and customizable reports for insights into cash flow and profitability. While Xero caters well to various industries, its strengths lie in freelancer/contractor work, startups, and service-based businesses. Pricing scales with business size and complexity, starting at a monthly subscription for basic accounting needs and increasing with additional features and users. Compared to some competitors, Xero offers a robust mobile app, strong integrations with third-party tools, and a focus on user experience. However, it may lack advanced inventory management or complex accounting functions suited for larger enterprises. Ultimately, Xero's value proposition lies in its ease of use, automation, and scalability, making it a popular choice for small businesses seeking a streamlined and efficient accounting solution.

Pros:
  • Cloud-based access anywhere
  • Easy invoicing and expense tracking
  • Automated bank reconciliation
  • User-friendly interface
  • Mobile app for on-the-go use
Cons:
  • Learning curve for new users
  • Limited inventory management
  • No built-in payroll (separate fee)
  • Higher cost for advanced features
  • Limited phone support
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Sage Accounting is a robust software solution designed to streamline financial management tasks such as invoicing, expense tracking, and cash flow management. It is particularly well-suited for small to medium-sized businesses across various industries, including retail, services, and manufacturing, due to its user-friendly interface and comprehensive features. Users benefit from real-time financial insights, automated bank reconciliation, and seamless integration with other business tools. Unique features like customizable dashboards and multi-currency support enhance its appeal. Compared to similar products, users often praise its intuitive design and reliable customer support. Pricing details can vary based on the specific needs and scale of the business, so it is advisable to contact SelectHub for a tailored quote. Sage Accounting stands out for its ability to simplify complex accounting tasks, making it an invaluable asset for businesses seeking efficiency and accuracy in their financial operations.
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Product Assistance

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24/7 Live Support
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Product Insights

  • Affordable Payroll: Take advantage of the free trial to see how much time automated data entry can save and assess if the solution is a good fit for the business. Save countless hours on tracking expenses, calculating payments, processing payroll and more.
  • Better Interoperability: Centralize company processes and handle a wide range of functionality with more than 700 add-ons available through the app marketplace. This includes programs for CRM, e-commerce, inventory, invoicing, job tracking, payroll, time and attendance and more.
  • Centralizes Data and Processes: Organize information and put the primary software that handles day-to-day issues all in one place. Manage files to a document library where users can see originals next to updated versions. Send files to stakeholders to ensure a clear flow of information.
  • Saves Time: Eliminate tedious data entry and ensure better data integrity by cutting down on human error. Provide a clear documentation trail to ensure that the business is running ethically and save time hunting for documents when it’s time to verify the information.
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  • Streamlined Financial Management: Sage Accounting simplifies complex financial tasks, allowing businesses to manage invoices, track expenses, and reconcile bank transactions efficiently.
  • Real-Time Financial Insights: Gain immediate access to up-to-date financial data, enabling informed decision-making and strategic planning without waiting for end-of-month reports.
  • Improved Cash Flow Management: By automating invoicing and payment reminders, Sage Accounting helps businesses maintain a healthy cash flow and reduce the risk of late payments.
  • Enhanced Collaboration: Multiple users can access the system simultaneously, facilitating teamwork and ensuring everyone is on the same page with financial data.
  • Scalability: As your business grows, Sage Accounting can easily scale to accommodate increased transactions and additional users, ensuring continuity and efficiency.
  • Compliance Assurance: Stay compliant with tax regulations and financial reporting standards through automated updates and built-in compliance checks.
  • Time Savings: Automating routine accounting tasks frees up valuable time for business owners and accountants to focus on strategic initiatives and growth opportunities.
  • Cost Efficiency: Reduce the need for extensive manual bookkeeping and minimize errors, leading to cost savings in both time and resources.
  • Data Security: Protect sensitive financial information with robust security measures, including encryption and regular backups, ensuring peace of mind.
  • Customizable Reporting: Generate tailored financial reports that meet specific business needs, providing insights into performance and areas for improvement.
  • Seamless Integration: Connect Sage Accounting with other business tools and applications, such as CRM systems and payment processors, for a unified workflow.
  • Accessibility: Access your financial data from anywhere with cloud-based functionality, allowing for flexibility and remote work capabilities.
  • Reduced Human Error: Automated calculations and data entry minimize the risk of mistakes, ensuring accuracy in financial records.
  • Enhanced Customer Relationships: Professional invoicing and timely payment reminders improve customer interactions and satisfaction.
  • Environmental Impact: Digital record-keeping reduces the need for paper, contributing to environmentally sustainable business practices.
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  • Payroll Processing: Provide payroll across 50 states. See when payments are due, track them and ensure on time payment. Analyze accounts payable with a quick view, schedule advanced payments and make batch payments.
  • Banking: Connect to the right bank to track and facilitate transactions daily. Keep an eye on the flow of money through a secure connection that goes directly into the solution.
  • Expense Management: Seamlessly track and manage expense claims. Access real-time data and reports that provide insight into patterns and trends. Record costs, see and approve claims, view overall spending and dole out reimbursements. Capture receipts to monitor employee spending and verify costs.
  • Project Management: Integrate with other workflows to facilitate financial project management. Provide a quote for client work before you begin to track time, costs, profitability and other variables for an accurate invoice.
  • Customer History: Use smart lists and contacts to contact details, emails, past sales, emails, invoices, past payments and more when working with a partner or client.
  • Mobile App: Let users track bank transactions, send invoices, access supplier details and more, from any mobile device.
  • Inventory Management: Undertake basic inventory management, including taking inventory, seeing what was bought or sold, look at reports on how well items are doing and get invoices and orders.
  • Gusto Integration: Calculate and pay taxes, deductions and employees through an integration with the accounting software Gusto. Simplify compliance and keep on top of industry updates.
  • Other Capabilities: Processes payment in multiple currencies, calculates sales taxes, tracks purchase orders, manages files and does several other administrative tasks.
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  • Cloud-Based Access: Access your financial data from anywhere with an internet connection, ensuring flexibility and convenience for remote work.
  • Automated Bank Feeds: Automatically import bank transactions to save time on manual data entry and reduce errors.
  • Invoicing Capabilities: Create, send, and track professional invoices with customizable templates to maintain brand consistency.
  • Expense Management: Easily record and categorize expenses, helping you keep track of where your money is going.
  • Multi-Currency Support: Handle transactions in multiple currencies, ideal for businesses dealing with international clients or suppliers.
  • Real-Time Reporting: Generate up-to-date financial reports to gain insights into your business's performance and make informed decisions.
  • VAT Compliance: Automatically calculate VAT and generate VAT returns, ensuring compliance with tax regulations.
  • Integration with Third-Party Apps: Seamlessly connect with other business tools like payment processors and CRM systems to streamline operations.
  • Inventory Management: Track stock levels and manage inventory efficiently to prevent overstocking or stockouts.
  • Project Tracking: Monitor project costs and profitability, helping you stay on budget and assess project performance.
  • Role-Based Access Control: Assign different access levels to team members, ensuring data security and privacy.
  • Mobile App Availability: Manage your accounting tasks on the go with a mobile app that offers core functionalities.
  • Customizable Dashboards: Tailor your dashboard to display key metrics and insights that matter most to your business.
  • Recurring Invoices and Payments: Set up recurring billing for regular clients to automate invoicing and payment collection.
  • Customer and Supplier Management: Maintain detailed records of customers and suppliers, facilitating better relationship management.
  • Audit Trail: Keep a comprehensive log of all transactions and changes for transparency and accountability.
  • Data Import and Export: Easily import and export data to and from other systems, ensuring seamless data migration and backup.
  • Multi-User Collaboration: Allow multiple users to work simultaneously, enhancing team collaboration and productivity.
  • Custom Financial Reports: Create tailored financial reports to meet specific business needs and reporting requirements.
  • Payment Processing Integration: Integrate with payment gateways to facilitate smooth and secure payment processing.
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Product Ranking

#3

among all
Accounting Software

#43

among all
Accounting Software

Find out who the leaders are

Analyst Rating Summary

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Analyst Ratings for Functional Requirements Customize This Data Customize This Data

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Accounts Payable Accounts Receivable Banking And Cash Management Budget And Expense Management Financial Statements And Revenue Management General Ledger And Chart Of Accounts Integration And Extensibility Inventory Management Journal Entries Mobile Support Multi-company Accounting And Asset Management Platform Capabilities Project Accounting Reporting And Analytics Tax Management 93 97 100 89 89 100 100 83 100 100 79 89 100 90 92 0 25 50 75 100
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User Sentiment Summary

Great User Sentiment 4652 reviews
Great User Sentiment 890 reviews
86%
of users recommend this product

Xero has a 'great' User Satisfaction Rating of 86% when considering 4652 user reviews from 5 recognized software review sites.

85%
of users recommend this product

Sage Accounting has a 'great' User Satisfaction Rating of 85% when considering 890 user reviews from 3 recognized software review sites.

4.4 (17)
n/a
4.3 (339)
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4.33 (2132)
4.2 (382)
4.3 (1877)
4.2 (382)
4.3 (287)
4.4 (126)

Awards

SelectHub research analysts have evaluated Xero and concluded it earns best-in-class honors for Integration and Extensibility and Mobile Support.

Integration and Extensibility Award
Mobile Support Award

No awards.

Synopsis of User Ratings and Reviews

Affordable: Of all the reviews that mentioned price, over 70% felt it was well within their price range and felt satisfied.
Good Customer Service: Over 70% of reviews that mentioned the customer support said they received excellent service, especially from their reps.
Excellent Functionality: In more than 50% of all reviews that mentioned features, users were happy with its capabilities. They especially like the integrations, reconciliation process, invoices and accounting functions.
Simple and intuitive interface: Xero's clean layout and straightforward navigation make it easy for users of all skill levels to manage their finances. In over 80% of reviews that mentioned the UI, users said it was easy to navigate.
Automated tasks: Xero automates repetitive tasks like invoicing, expense tracking, and bank reconciliation, saving users valuable time and reducing errors.
Mobile app for on-the-go access: Manage your finances and stay up-to-date on your business performance anytime, anywhere with Xero's mobile app.
Customizable reports and dashboards: Gain valuable insights into your cash flow, profitability, and other key financial metrics with Xero's customizable reports and dashboards.
Multi-user access and permissions: Collaborate with team members and advisors seamlessly with Xero's secure multi-user access and permission controls.
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Unlimited Invoices: User reviews highlight that Sage Accounting allows for unlimited quotes and invoices, which is a key advantage over some competitors that impose limitations on these features.
Cash Flow Tracking: Users praise Sage Accounting for its effectiveness in managing cash flow, a critical aspect of running a business successfully.
Strong Customer Support: Reviews consistently mention Sage 50 Accounting's excellent customer support, indicating a positive user experience and reliable assistance when needed.
Comprehensive Features: Sage 50 Accounting is lauded for its wide array of features, including invoicing, bill payments, inventory management, cost control, and payroll functions, making it a suitable choice for businesses seeking a complete accounting solution.
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Limited inventory management: Xero lacks advanced inventory tracking features, making it less suitable for businesses with complex inventory needs.
Learning curve for complex features: While basic tasks are easy, some advanced features like multi-currency accounting can be challenging for non-accountants to navigate. Though the system was widely popular after implementation, users said it was old-fashioned and had a steep learning curve in 20% of reviews that mentioned the UI.
Higher cost for advanced features: Access to advanced features like payroll processing and multi-currency comes at a higher price point, potentially exceeding budgets for smaller businesses.
Limited phone support: Xero primarily relies on email and live chat for support, which may not be ideal for users seeking immediate assistance with critical issues.
Integration limitations: While offering many integrations, some key business tools may not have seamless integration with Xero, requiring workarounds or data duplication.
Invoices: While around 60% of users felt that the invoicing system worked well, around 40% said they had trouble making changes to them once they were saved.
Downgrading Issues: Around 20% of reviews that mentioned price said they had issues while trying to go to a lower pricing tier and often ended up paying a month or more at a higher rate.
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Limited Features: User reviews indicate Sage Accounting lacks features like bill pay, which may be a dealbreaker for some businesses.
Potential Performance Issues: Some user reviews mention slowness when handling large data volumes, suggesting potential performance bottlenecks for businesses with high transaction volumes.
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Xero’s users say it’s easy to use and has good accounting and bookkeeping capabilities. Most found the price to be acceptable, with some complaints about issues they ran into while trying to switch to a lower pricing tier. More than 70% loved the customer service and felt their representatives were extremely helpful. It has a range of features including band feeds, invoice creation, integrations and reconciliation processes. The reconciliation was particularly popular with over 80% of reviewers who mentioned it describing positive experiences. One issue with the system came in making updates to invoices after they’d been saved. Some users said they were sent prematurely to clients or claimed to have difficulties changing the data at a later date. Many also felt that the implementation process for the new platform was difficult, but that once they learned where things were they felt comfortable. This may be a good choice for small and medium businesses. Larger companies should consider a system that’s able to handle a higher volume.

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How can Sage Accounting help your business grow with the times? Sage Accounting software has garnered a mixed bag of user reviews over the past year, with some users singing its praises while others hit a sour note. Users appreciate Sage Accounting's robust automation capabilities, particularly for tasks like bank reconciliation and financial reporting, which streamline financial operations and reduce manual effort. Its comprehensive add-ons, such as payroll and HR, are also seen as major pluses, transforming it into a comprehensive business management solution. However, the software's steep learning curve and less intuitive interface have left some users feeling like they're stuck in a maze. Users have also pointed out that Sage Accounting's pricing, while not publicly disclosed, is often higher than that of competitors, making it a potential budget buster for smaller businesses or startups. A key differentiator for Sage Accounting is its scalability, making it a good fit for businesses anticipating rapid growth or those with complex accounting needs, such as multi-entity consolidation. This is particularly beneficial for businesses with ambitious expansion plans, as they can avoid the headache of switching software as they grow. However, this strength also underscores a significant weakness: Sage Accounting's complexity can be overwhelming for smaller businesses or those with simpler accounting requirements. In essence, it's like using a sledgehammer to crack a nut – overkill for some. In conclusion, Sage Accounting is most suitable for medium to large businesses with experienced accounting personnel who can navigate its advanced features and leverage its automation capabilities. It's a powerful tool for businesses that need to manage complex financial operations and have the resources to invest in a premium solution. However, smaller businesses or those new to accounting software might find more user-friendly and affordable options on the market.

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