Like many professionals who specialise in an industry, accountants have preferred software to use in their work.
The two most commonly used software, for smaller businesses, are Sage and Xero. But, what’s the difference?
Both platforms provide a range of features designed to streamline your finance operations, but they cater to slightly different needs and preferences.
We did some research and looked into the advantages and disadvantages of both. Here’s a breakdown of our findings.
Sage
Sage is a longstanding accounting software and has a number of different products associated with it such as Sage 50cloud and Sage Business Cloud.
Advantages:
• Extensive suite of tools: Sage has lots of handy tools to streamline your finance operations from invoicing, expense tracking, payroll, inventory management and advanced reporting. This makes it a great option for businesses that have lots of requirements.
• Sage grows with your business: Sage is a great option for smaller businesses looking to expand as its products are designed to grow with you with few limitations on sizes of tasks.
• Integration capabilities: Sage can integrate with a number of third-party apps, from CRM systems to project management tools. This will save you time and money when aiming for a seamless workflow across the different functions in your business.
• Efficient reporting: Sage has a very advanced reporting function that provides deep insights into financial performance. This allows your business to make informed decisions and adapt to any changes in the industry.
Disadvantages:
• Complexity: While the extensive features of Sage are certainly a benefit, they can make the interface feel more complex and challenging to navigate. This makes it harder for beginners.
• More expensive: Sage’s pricing, particularly for advanced plans, can be quite costly which may be an issue for smaller businesses.
• Training required: Sage isn’t a platform you can just jump onto, because of its features, users may require more training to become familiar with how to use it.
Xero
Xero is a cloud-based accounting software which has more recently become very popular in the industry – particularly among small businesses and start ups!
Advantages:
• User-friendly: Xero has become renowned for its intuitive and easy-to-navigate interface, making it a great choice for all levels of users.
• Accessibility ease: As a cloud-based software, Xero allows users to access their accounts from anywhere with the internet – perfect for teams who work remotely!
• Collaboration features: Xero believes in the power of teamwork, enabling multiple users to work on the same data simultaneously.
• Integration capabilities: Xero integrates with over 800 third-party apps which enhances its functionality and allows for seamless work flow over different departments in your business.
Disadvantages:
• Limited advanced features: Xero is favoured for small to medium-sized businesses rather than larger businesses. It has limited advanced features which could pose a problem for companies with more complex accounting needs.
• Limited customer support: Like with any industry, things can go wrong in accounting. We found that some users have reported that Xero’s customer support can sometimes be slow – an issue for issues that need sorting immediately.
• Less efficient reporting: Compared to Sage, Xero’s reporting is less advanced. If financial analysis is a driving factor for you, this might not be the software for you.
Choosing between Sage and Xero depends on your business’ specific needs and budget. Sage is a veteran in the accounting industry, renowned for its advanced features and being a solid choice for businesses with complex requirements.
Xero offers a more user-friendly approach, with great integration and collaboration features, that make modern-day, remote, or hybrid working, achievable.
When deciding which to use, consider your business size, the complexity of your accounting needs, your working patterns and preferred user experience.