You must keep track of your finances, whether a small business owner or a large corporation. Determining which bookkeeping solution is best for your business can be challenging. Two of the most popular bookkeeping solutions on the market are Sage and Xero. Both of these solutions offer a range of features that are designed to help you manage your finances.
This blog will compare Sage and Xero to help you decide which bookkeeping solution is right for your business. We will look at the features, pricing, and other relevant information about both solutions so that you can make an informed decision. Let's first take an introductory look at both bookkeeping solutions.
Table of Contents
ToggleXero
Starting in 2006 from New Zealand, Xero quickly became one of the world's most used bookkeeping solutions. It is an integrated accounting software that offers excellent features, especially for the needs of small businesses.
Sage
Founded in 1981 in the UK, Sage offers an all-in-one accounting solution for businesses across more than 23 countries. It provides options for everyone, whether you are a sole trader or a big business owner.
Features of a Modern Bookkeeping Solution: Where does Xero and Sage Stand?
Now that you have background information about Xero and Sage let's see if they offer the features a bookkeeping solution in 2023 should have to make your bookkeeping operations more accessible and successful.
Access to Financial Data
Xero offers cloud computing. This means Xero does not need you to be in the office to look at your financial data. You can be sitting on the other side of the world and still access your financial information and work on it.
This also means that you can outsource your bookkeeping needs via Xero. While Sage offers cloud computing, you need to switch to the Sage 50 plus package, which requires a monthly fee.
User Friendliness
While Xero is loved for being intuitive, offering useful financial health information on its dashboard, and integrating with several applications, Sage is said to be off-putting as it is designed to be used by accountants only.
If your business wants to use easily understandable features like project time-tracking, receipt management, and automated purchase orders, go for Xero.
Cost
Cost is one of the most important considerations when choosing a bookkeeping solution. While Xero starts its membership from £10 for small businesses, Sage membership plans start from £12. However, unlike Xero, Sage offers free membership for three months before you need to purchase any plans.
Both Xero and Sage offer competitive prices. Sage could be costly for sole traders and freelancers looking for basic bookkeeping or accounting plans
Mobile Integration
Seamless mobile integrations are the demand of modern bookkeeping operations. With people constantly on the move, accessing financial data on mobile devices can be an asset. Xero offers a mobile app where you can access all financial data, enter information, and receive notifications.
Meanwhile, you would still need a laptop to access Sage, as it does not offer a mobile application.
Customer Service
When buying a bookkeeping solution subscription, you must pay attention to their customer service. In the case of Sage, they offer telephonic support to users. Meanwhile, Xero does not. You will need to email Xero customer care for help which can take time and raise your concerns.
Reporting
When generating financial reports, Sage takes the lead with 165+ reports. Xero also produces a good number of user-friendly reports.
Which is Better?
Sage is an easy-to-use system if only your accountants and bookkeepers are working on it. Sage offers a great range of features and options. It is also cost-effective and can be customised to suit the needs of your business. However, Sage has shortcomings, such as a need for mobile support and a steep learning curve.
Xero is a cloud-based system that offers services and features that are great for small businesses. It is user-friendly and has a good range of reporting options. Xero also has solid mobile support and is integrated with several other applications, making it an excellent choice for businesses that need to access their data from anywhere. However, some users find Xero's interface to be too simple.
Conclusion
Sage and Xero are both great options for bookkeeping solutions. With their user-friendly interfaces and robust features, you can be sure you are getting the most out of your bookkeeping solution. While both solutions have pros and cons, it's important to weigh them against your business needs and budget to make the best decision for your company. No matter which program you choose, you can ensure you get a reliable, secure, and intuitive bookkeeping solution.
