Xero VS Sage: Which Accounting Software is Better?

• Reading Time: 7 Minutes
• Published: December 5, 2024
• Last Updated: February 5, 2025

Choosing the right accounting software can really make a difference to how smoothly your business runs. It helps you stay on top of your finances, manage cash flow, and keep everything organized with minimal effort. Two of the most popular options out there are Xero and Sage. Both are packed with powerful tools, from invoicing to reporting, but each has its own strengths. In this blog, we will break down the key features, ease of use, integrations, and automation options of Xero vs Sage, so you can figure out which one works best for your business.

Xero vs. Sage: Key Features

Xero Features

• Invoicing and Payments:

Xero offers customisable invoicing tools that allow businesses to send invoices, set automated reminders, and accept payments through credit and debit cards, ensuring consistent cash flow.

• Bank Connections and Reconciliation:

Xero supports connections with over 21,000 global banks, enabling automatic bank feeds and real-time reconciliation to keep financial records up-to-date and accurate.

• Inventory Management:

Xero includes inventory tracking that automatically updates stock levels with each sale, providing an easy solution for businesses handling product-based inventory.

• Reporting and Analytics:

Xero’s real-time reporting and cash flow forecasting give businesses insights into financial health and allow customisation for tailored reports to support decision-making.

• Multi-Currency Support:

Xero’s multi-currency feature automatically adjusts for real-time exchange rates, making it ideal for international businesses requiring accurate currency handling.

Sage Features

• Invoicing and Payments:

Sage allows users to convert quotes to invoices seamlessly and offers strong tracking features, enabling businesses to manage outstanding payments efficiently.

• Bank Connectivity and Reconciliation:

Although regional limitations may apply, Sage provides bank feeds and supports accurate reconciliation.

• Advanced Inventory Management:

Sage’s inventory tools allow detailed tracking of stock levels and costs, making it suitable for businesses needing precise inventory control.

• Comprehensive Reporting:

Sage includes detailed reports like Profit and Loss and Balance Sheets, with customisation options that help businesses make strategic financial decisions.

• VAT and Compliance Tools:

Sage’s VAT tools streamline compliance, offering features to calculate VAT and submit returns, making it especially valuable for businesses with strict regulatory needs.

Xero vs Safe: User Interface

Xero UI

The Xero software UK user interface is designed with simplicity and easy navigation. Its dashboard provides a clear, at-a-glance overview of essential financial data, such as bank balances, outstanding invoices, and cash flow insights. Users can easily customise the layout to prioritise the information that matters most, such as tracking sales, managing bills, and monitoring cash flow through visually straightforward graphs and charts. Xero’s mobile app mirrors this simplicity, ensuring users can manage their finances efficiently, even on the go.

Sage UI

In contrast, Sage accounting offers a more detailed interface that prioritises functionality, especially for businesses with more complex financial requirements. The dashboard includes customisable widgets, allowing users to focus on specific data points such as cash flow, stock levels, and tax summaries. Although initially more complex to navigate than Xero accounting services, Sage’s interface supports well-built reporting and inventory management, making it suitable for users who need advanced financial control. Sage also offers a mobile application that focuses on maintaining in-depth business data rather than quick overviews.

Xero vs Sage: Reporting

Xero Reporting

Xero offers 55 reports that focus on simplicity and essential financial data. These include profit and loss statements, balance sheets, and cash flow reports. Xero’s intuitive interface makes it ideal for small businesses looking for straightforward reporting without unnecessary complexity.

Sage Reporting

Sage provides a strong suite of over 165 reports, varying by plan. The cloud-enabled Sage 50cloud ensures these reports are accessible from anywhere, offering advanced financial analysis and real-time insights. This makes Sage a better fit for larger businesses with more complex reporting needs.

Xero vs Sage: Integrations and Compatibility

Xero

Xero Software UK is known for its versatile integrations, supporting over 1,000 apps to streamline accounting and business operations. Xero’s app ecosystem connects effortlessly with popular business tools, from CRM systems to e-commerce platforms, making it ideal for businesses that require a wide range of functionalities. This flexibility enables businesses to customise Xero to their specific needs, enhancing productivity and reducing manual data entry. For companies looking to migrate from Sage to Xero, Xero offers effective tools and resources to support a smooth transition, ensuring continuity and efficiency in managing finances.

Sage

Businesses widely use Sage accounting services for its reliability and essential integrations, such as payroll and payment processing tools. Although Sage’s integration offerings are fewer than those of Xero, Sage still supports key add-ons like AutoEntry for automated data entry and Timeslips for time tracking, providing businesses with fundamental resources to run efficiently, for users of Sage 50 looking to expand functionalities, integrating with available add-ons can enhance core accounting tasks. However, Sage’s integrations focus more on traditional accounting needs than a broad, customisable ecosystem.

When comparing Xero vs Sage, the choice between them depends on a business’s integration needs. Xero or Sage has unique strengths: Xero shines with its extensive app compatibility, making it ideal for dynamic businesses needing diverse tools. Conversely, Sage accounting focuses on essential integrations that cater to more conventional accounting tasks, suiting those with straightforward needs. Suppose you aim to migrate from Sage 50 to Xero. In that case, Xero offers substantial support, making the Sage to Xero migration process seamless and accessible for businesses ready to upgrade capabilities of their cloud based accounting software.

Sage vs Xero: Automation and Workflow Optimisation

Xero

Xero Software UK is designed to enhance automation and improve workflow efficiency for businesses, making it a powerful tool for streamlining operations. With features like automated bank reconciliation, invoicing, and expense management, Xero allows users to focus less on repetitive tasks and more on strategic activities.

These automation capabilities integrate seamlessly with Xero’s extensive app ecosystem, enabling users to customise their workflows and eliminate much of the manual data entry associated with financial management. For those considering a switch, Xero offers resources to support a smooth sage to Xero migration, helping businesses quickly adapt and optimise their processes.

Sage Accounting Software

Sage accounting provides a solid foundation for workflow optimisation through essential automation tools to improve productivity and financial oversight. While its automation features are more traditional when comparing Xero vs Sage. Sage Accounting excels at automating core tasks such as payroll, data entry, and e-filing, which can significantly reduce the time spent on day-to-day operations.

When weighing Xero vs Sage, businesses may find that Sage’s focus on traditional accounting automation makes it a strong choice for straightforward accounting needs. At the same time, Xero’s broader flexibility may be better suited for those needing more adaptable workflows. Ultimately, choosing between Xero or Sage will depend on whether your business requires a more extensive app network or values the foundational automation Sage accounting provides.

Sage vs Xero: Customer Support and Resources

Xero

When comparing customer support between Xero vs Sage, it’s clear both companies strive to provide comprehensive assistance to their users, but their approaches differ. Xero Software UK offers users 24/7 online support through Xero Central, a platform where users can access many support articles and raise support tickets directly. Users can also request a callback for any unresolved queries, ensuring that help is always available.

Sage

Sage Accounting offers a strong support structure with several layers. Through Sage Support Central, users can explore resources like articles, community forums, and webinars tailored for Sage products. Sage accounting customers in the UK benefit from personalised support, where they can contact specialists for assistance.

Sage provides on-demand and live training sessions, enabling users to learn independently. This training-centric approach allows businesses to maximise productivity, as employees can master the software in detail.

Xero vs Sage: Security and Compliance

Xero

Comparing Xero vs Sage regarding security and compliance, Xero and Sage prioritise strict measures to safeguard user data and meet industry standards. Xero, known for its commitment to security, is certified with ISO 27001, a leading international standard for information security management.

Also, Xero produces SOC 2 reports, ensuring that its cloud-based Xero software UK meets stringent requirements for data protection. With features like multi-factor authentication and PCI DSS compliance, Xero for accounting defends against unauthorised access and protects sensitive payment information. These security protocols help reinforce user trust and maintain data integrity, making Xero an attractive choice for businesses prioritising data protection.

Sage

Sage also highly emphasises security through its dedicated Trust and Security Hub. Sage accounting tools are supported by extensive security protocols designed to prevent cyber risks and ensure compliance with industry standards. With data encryption, strict access controls, and compliance with GDPR, Sage accounting software ensures user privacy and security.

Sage further provides educational resources on cyber security, helping users stay informed about best practices for protecting their information. Both platforms offer strict security for businesses deciding between Xero or Sage, but the choice depends on which features align better with their unique compliance needs.

Sage vs Xero: Scalability and Suitability for Different Business Sizes

Xero

Xero is flexible and works well for small to medium-sized businesses, especially those that are growing. It’s ideal for businesses starting with accounting software, as it’s user-friendly and scales up as the business expands. Xero’s features remain effective as companies add more users or increase transaction volumes, making it a reliable option for businesses anticipating growth.

Sage

Sage is geared a bit more toward established businesses and larger enterprises. It’s built with features to support the complex accounting needs of growing businesses. Sage’s structure and advanced tools make it ideal for companies needing extra control over accounting processes, especially those in specific industries that may need more specialised features.

Simplify Your Finances with Zoho Accounting

Get customized plan that supports your growth

Explore Pricing!