Xero vs. Sage: Which Accounting Software Is Better for You?

When you’re searching for an accounting software for your small business finances, narrowing your search down to a single choice can be tricky.

That’s why many small business narrow their accounting software down to two of their very best options—Xero vs. Sage—and then have a hard time choosing between the two.

So, who is the winner in Xero vs. Sage?

We’ve compiled the ultimate field guide to help you figure it out—here’s your comprehensive resource to navigating your choice between Xero vs. Sage accounting software.

What are the basics to solving the Xero vs. Sage question for yourself?

First and foremost, you’ll need to understand why you—along with many other business owners—have ended up in this head-to-head.

Basically, Xero and Sage are two of the most small business friendly accounting softwares out there.

With multiple user-friendly version that will allow your accounting software to grow with your business, both Xero and Sage are hospitable to the future of your ever-growing business, no bookkeeping professional required.

Plus, these two options are both remarkably affordable, making them ideal for small businesses who are working with more restrictive budgets.

So, what differences will help you find your winner in Xero vs. Sage?

You’ll find those deciding factors in the details, so let’s take a microscope to all things Xero accounting software and Sage accounting software to get a comprehensive understanding of what makes them unique products.

With the generalities covered, it’s time to dive into the details that you’ll need to be familiar with in order to effectively answer the question of Xero vs. Sage for your business.

First, let’s zoom into all the details on Xero, starting with their Early plan.

For smaller businesses who need fewer capabilities and monthly activity allowances from their accounting software, the Xero Early plan is an affordable go-to.

Let’s take a look at what this plan offers.

The next step up for Xero accounting software is their Growing plan, which will be ideal for small to mid-sized businesses’s accounting software needs.

Last up, Xero accounting software’s most capable plan yet is the Established plan. This plan will allow your business to access the most features possible and has even fewer limits than Xero Growing.

Xero Established was formerly known as Xero Premium, and came with three tiers at three different price points for varying sizes of businesses. Now, however, Xero Established offers one cohesive plan at one price, so that your business can grow and scale using Xero’s accounting software.

On the other hand, you may want to explore your options with Sage before making a decision when it comes to Xero vs. Sage. In that case, we should discuss Sage’s two plan options for small businesses: Sage Business Cloud Accounting Start and Sage Business Cloud Accounting.

Sage’s Business Cloud Accounting Start software is an entry-level software meant for smaller businesses who need help managing their cash flow. It can be an affordable alternative to Xero’s cheaper plans.

Let’s take a closer look at what that entails.

If you want even more from your accounting software, then consider the upgrade to Sage Business Cloud Accounting.

With this accounting software, you’ll be able to access even more than Sage Business Cloud Accounting Start—for a price, of course.

With all of the crucial details covered, let’s step back and start to deliberate.

Who wins in this Xero vs. Sage showdown?

Well, because every small business’s accounting software needs will differ, there’s no categorical winner in Xero vs. Sage.

That said, there are certain aspects about these two accounting softwares that will outperform the corresponding aspects of the other.

So, let’s see where each option wins out in Xero vs. Sage.

First up, let’s take a look at the specific features where Xero outshines Sage.

If your business has a lot of cooks in the proverbial kitchen, then you might need an accounting software that allows for unlimited users to collaborate on one account.

And Xero will offer this capability on each plan for its accounting software. So, even if your business is on the smaller side and wants to opt for the most basic plan, Xero will still allow you to have unlimited collaborators on your business’s account.

Additionally, if you want your business accounting software to come with payroll capabilities, then Xero will be a clear winner in the Xero vs. Sage debate.

Having your business’s payroll and books all in one place can seriously streamline all things accounting, and Xero is one of the very few accounting softwares that offers this optimization.

On the other hand, Sage certainly holds its own in the Xero vs. Sage showdown.

Let’s see where Sage outperforms Xero.

Basically, Sage’s entry-level plan—Sage Business Cloud Accounting Start—offers much more bang for your buck than its Xero counterpart—the Xero Early plan.

Though Sage Business Cloud Accounting Start will cost you $10 per month—as compared to the $9 a month the Xero Early plan will cost you—you’ll get much more than your dollar’s worth with Sage Business Cloud Accounting Start as your accounting software.

With no limits to your accounting activity, along with premium features like 24/7 support and an intelligent digital assistant, Sage Business Cloud Accounting Start far outperforms the Xero Early plan.

With all of the details covered and all of the highlights highlighted, it’s high time to step back and come to a verdict in the Xero vs. Sage debate.

Again, because you’re the one who knows your business best, we won’t assume to know a categorical winner when it comes to Xero vs. Sage. That said, there are a few aspects in which one option clearly outperforms the other option.

The best way to choose your winner in Xero vs. Sage is to decide which features matter most to you, and to choose your accounting software based on which one does that feature best.