If you want to see the video of Xero Vs Sage scroll to the very end. If you’d want to read the blog, please continue reading

As an entrepreneur, it’s essential to find the best accounting software for your needs. Unfortunately, there are many programs on the market today, and choosing one can be challenging. If you have questions about which option would work well with what type of company or business model, then don’t hesitate – ask us here so we’ll point out some things worth considering when making this decision.

With the help of Sage and Xero, you can keep track of your business’s finances in an easy-to-use manner. These accounting software providers are great for any size company – whether it is large or small, including payroll management as well as invoicing or expenses tracking so you can get back to running your business without worrying about a thing.

So, you’re looking to switch accounting software and want something more than just simple books? We’ve got a guide that will help you choose between Xero or Sage. You might be surprised at what we have in store.


Regarding accounting software, Xero and Sage are two of the most popular options for small business owners. They both offer cloud-based features with an app subscription pricing model that stacks up quite similarly compared to head-on price-wise and can be used by anyone from start-ups all way down to large corporations.

Looking at the features of both plans, it’s clear that there is a lot in common between them. But have you considered what each plan offers and how they will work for your business? We’ll take this one step further by comparing prices now.


Xero is the global leader in accounting software, with more than 2.7 million subscribers on its network worldwide, including UK & New Zealand customers and Australians.

Younger entrepreneurs and small business owners will love Xero. It’s an easy-to-use, all-in-one platform for your accounting needs that caters specifically to new businesses.

Xero is the all-inclusive accounting software that will help you take control of your funds and businesses. It’s geared toward new business owners or anyone in their 20s+.


  • Invoicing, expenses, and payroll are all on the same platform.
  • Automate invoicing and reporting.
  • Bank synchronisation.
  • Collaboration in real-time with your team members and/or your accountant.
  • Customisation options, which include integration with more than 800 third-party apps.
  • Additional add-ons can be purchased, such as Xero Payroll, Xero Expenses as well as Xero Projects.


Along with its online version, Xero also has an app for Android and iOS devices. This means you can use it when on the go to stay up to date in the accounting world!

  • Finding contacts
  • Sending invoices
  • Conciliating bank transactions.
  • Monitoring expenditure
  • Converting quotes into invoices
  • Create reminders for paying bills
  • Reports and insights can be accessible.


Xero’s software is designed with a unique add-on feature that could make international transactions easier.

With your Xero software, you can pay bills from suppliers worldwide in just a few clicks and take advantage of fees to save money while also saving time. In addition, you’ll be able to see what’s happening with payments by viewing their status or reconciling any discrepancies between invoices and payment records – plus, it works seamlessly across different currencies.


If you’re looking for a company that can provide integrated accounting, payroll, and payment software, then Sage is the right choice. They have been in operation since 1981 with offices across Europe and UK as well as in America. They serve over 6 million subscribers worldwide, making their services invaluable to any small business or enterprise trying to make it through these tough economic times intact.

The Sage Business Cloud Accounting software is an excellent option for small businesses looking to trade internationally. With options available in both desktop and online versions, it has something that meets everyone’s needs, from start-ups and sole traders up to well-established companies operating on an international scale.

The software provides the following options (dependent on the subscription plan you select):

  • Track, manage and send the purchase and sales invoices
  • Calculate and submit VAT compliant returns. Sage is HMRC acknowledged and making Tax Digital ready
  • Record and save receipts to the cloud
  • Make sure you share access with your sage accountant
  • Connect your bank accounts for business to see in real-time the flow of cash
  • Payroll add-ons are optional.


Along with its main product, Sage also offers cloud-based accounting. The company’s solution called Sage 50 cloud Accounts is a must for anyone who needs access to financial data anywhere at any time on multiple devices or operating systems. Of course, all the same, features seen in desktop versions are present here too. Still, prices vary depending upon your subscription plan selection – including compatibility across Windows-, Apple iOS & Android platforms. Hence, there isn’t anything holding you back from taking control over all aspects of business management again right where it needs be: In the Cloud.


When searching for accounting software, you may also come across the name Sage One. However, this has now been renamed and repackaged as Sage Business Cloud Accounting. The same product we looked at earlier in this guide with all its features intact – just under a different moniker (Sage One becomes “Sage Business Cloud”).


Services Sage Logo XERO Logo
Bills, invoices, and invoicing are unlimited. Yes Yes (but not with Starter Plan)
Unlimited users Yes (but not with Start plan) Yes
Tracking of expenses Yes – (Auto Entry receipt capture tool free with Standard Plan for 3 months) Yes – for extra cost
Reconcile bank transactions Yes Yes
Submit VAT to HMRC Yes Yes
Payroll Yes – for extra cost Yes – for extra cost
Mobile app for free Yes Yes
Multi-currency handling Yes (with Plus plan) Yes (with Premium plan)



As a freelancer, sole trader, or start-up entrepreneur looking to invoice your clients, you’ll need more than one account. Of course, you could start with Xero’s cheapest plan, which offers up to 20 invoices per month and five bill payments–but if that sounds like too much work, stop there. There are three different plans available: Starter for those just starting; Standard offering full range of features at an extra cost (£5 monthly) Premium providing all-inclusive service that includes Payroll computing in multiple currencies along with other goodies such as accounting reports etc…


You can try out Sage’s tools with a 3-month free trial and then pay between £12 and £30, which is broadly comparable to Xero – however, it is slightly more expensive for freelancers/sole traders wanting the basic plan. They also give you the option of adding extra services like sage payroll service or consulting at an additional cost depending on what package suits your needs most (paying only about £5-£7).

Price Comparison Sage Logo XERO Logo
Business level Sage – monthly cost (after free initial 3-month period) Xero – monthly cost
Sole trader/small business £12 £12
Growing small businesses £24 £26
Medium-sized businesses £30 £33


One of the most important things to look for in a new accounting tool is reliable, secure, and automated integration with your business bank accounts. This means that you can rest easy knowing all transactions are being recorded properly, so there won’t be any hiccups or mistakes on an otherwise smooth ride! So, let’s see how Xero and Sage compare when it comes down to their banking feeds:

A good number will go out into research before making decisions. Still, these two companies have some clear advantages over others which makes them worthwhile considering first – they provide seamless access through easily accessible APIs (or application programming interfaces), giving users complete flexibility over data storage options without worrying about compatibility issues arising.


Xero is a reliable, secure, and easy-to-use accounting software. The bank feeds are encrypted, so they don’t need to be uploaded manually every time you connect the program; instead, it does this automatically on your behalf! You can set up Xero with any number of accounts from 12 months ago, too – making sure that your data always stays up to date no matter what happens in real life or the finance world around us (plus, there’s nothing like starting afresh).


With the Sage Connector, you can connect your accounting software with multiple banks to automatically import transactions. As a result, you’ll never have to wonder where that credit card bill went or worry about missing out on an important payment again.

Setting up bank feeds with Sage is easy but not as fast or seamless. You have two options: a direct feed from your institution if it’s on the list of supported banks–which can take 10 working days to confirm and add this information into their system-or going through one of FCA’s approved third parties for about 2 weeks instead (and shorter confirmation times).

free xero software for 3 months


Accounting software can be a daunting decision. When you’re deciding between Sage and Xero, there are many factors to consider, including but not limited to the price point for an accounting package and the features offered by each company to make running your business more seamless – do they have what I need? If so, will this choice solve all my problems or only some of them? In addition, it would help if we had comparison tables that compare both products side-by-side with their specifications compared against one another before making our final selection.

Don’t just compare the price of accounting software. Make sure you consider what features it has, how easy they will be for your business to use and if those features are necessary to run smoothly or not at all.

Book a free consultation now with an expert

Book a free consultation now with an expert

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