Xero vs Sage Comparison: Is Sage Accounting or Xero Better?

Choosing between Xero and Sage for your accounting needs? 

In our Xero vs Sage comparison, we explore these popular solutions in detail. Both made our top accounting software list because of their strong invoicing and bank reconciliation features. 

But, they have unique traits that might suit one business over another. 

Dive in with us to see which is the best accounting software for your business.

What is the difference between Xero and Sage?

The main difference between Sage and Xero is their target audience and feature set. Sage is ideal for freelance accountants and micro businesses focused on invoice management and cash flow tracking. Xero is suited for small and medium-sized businesses, offering more advanced features like project accounting, payroll, and inventory management. 

Sage Accounting used to be known as Sage One, and now it’s also sometimes called Sage Business Cloud Accounting. Sage Accounting also has other options: Sage 50 and Sage Intacct. 

If you're starting a small business, Sage Accounting is a good pick. As your business grows, you can switch to Sage 50cloud. Sage Intacct is best for large organizations, big businesses, enterprise operations, and even governments.

Xero accounting software is an online tool with lots of features and connects with over 800 other apps. It's great for many types of businesses, like online shops and law firms. Plus, it handles multiple currencies, which is handy for international sellers.

For a deeper dive into each accounting platform's capabilities and features, you can check out our Sage review and Xero review.

Xero vs Sage comparison chart

This table presents a category-by-category comparison of Xero vs Sage Accounting, highlighting the winner for each. Additionally, you can access quick links to their costs and pricing pages if you wish to sign up.

Xero vs Sage pricing

Xero offers three pricing plans, for which you'll pay anywhere from $25 to $54 a month. The basic plan gives you 20 invoices, five bills, and bank transaction reconciliation. As you move up, you get unlimited invoices and bills and even multi-currency support in the top plan.

On the other hand, Sage's base plan is $10 a month, and they have a second option that's just $7.50 for the first six months, then bumps up to $25. Even in their starting plan, Sage gives you unlimited invoices and features like automatic bank reconciliation. 

If you upgrade, you get perks like cash flow predictions and a neat tool to snap and save receipts (free for three months at the moment).

Winner: 

If saving money is key for you, Sage is the way to go. It's a great fit for freelancers and tiny businesses. But if you're growing and need some advanced tools, you might find Xero's top tiers more up your alley.

Sage vs Xero free versions

Both Xero and Sage don't offer free plans, but they'll let you test the waters with a 30-day free trial.

Winner: 

This round is a tie, as neither tool has a free plan. 

Customer support

All Xero users get free 24/7 online support. The bad news is there's no phone support or live chat but only email support.

Sage lets you actually talk to a human. They have a phone line open from 9 a.m. to 8 p.m. ET on weekdays. Their live chat is also there for you between 9 a.m. and 5 p.m.

Winner:

Sage has a slight lead in this category as it also offers phone support. 

Knowledgebase & learning

Xero offers a rich knowledge base full of articles, videos, and online courses. These materials are designed to guide you so that you find it easier to use the software.

Sage also has instructional videos and webinars, but what sets them apart is Sage City—a community where users share advice and help each other. 

The standout feature is "Sage University," a platform offering both self-paced learning and classes with live instructors.

Winner: 

With its unique "Sage University," Sage leads in this category.

Sage vs Xero features & functionality

Now that we covered the basics, let's compare Sage vs Xero in terms of key features and functionality to see which one stands out in each category.

We’ll compare them in the following categories:

• Ease of use

• Online versions

• Desktop versions

• Invoicing

• Bank connections

• Online payments

• Projects

• Integrations

• Expense tracking

• Bill payment 

Xero or Sage for ease of use?

Xero boasts a modern and user-friendly interface. While the app is intuitive and well-structured, there's a bit of a learning curve, especially for beginners. Once you're familiar, though, navigating becomes much smoother.

Sage offers a more straightforward experience from the get-go, primarily because it has fewer features to master. However, in terms of design, it looks a bit more traditional. On the plus side, its dashboard is uncomplicated, and it shows you just the essentials.

Winner: 

The winner in this category would depend on your preferences. If you're a beginner who just needs simple software they can onboard fast, Sage is a great pick. If you're after a more modern interface, Xero might be better. 

Sage vs Xero online versions

Both Sage and Xero are cloud-based solutions available on the following browsers: Chrome, Firefox, Safari, and Edge. They also both have mobile apps for iOS and Android. 

Winner: 

This round is a tie as both apps are available on all modern browsers and have mobile apps. 

Xero vs Sage desktop versions

Xero has a desktop app ready for both Mac and Windows users. It lets you handle tasks like making invoices, sorting out bank details, and tracking costs. It's created for those who like the classic desktop feel.

Unfortunately, Sage Accounting doesn't have any desktop apps. 

Winner: 

Xero takes the lead as it's the only one of the two with desktop-based accounting software.

Invoicing 

Xero lets you create up to 20 invoices monthly on its Early plan and gives you unlimited invoices if you subscribe to the higher plans. 

There's one fully customizable invoice template. Additional functionality includes recurring invoices, automated invoice reminders, bulk invoicing, and invoice replication.

Sage, meanwhile, lets you create and send an unlimited number of invoices on all of its plans. It simplifies tracking with automation and converts quotes into invoices. There are nine invoice templates for different business types, all fully customizable.

Winner: 

Sage has a slight edge as it has nine invoice templates, and there's no limit to the number of invoices you can send on either plan. 

Bank connections

Xero links with over 21,000 banks worldwide. If your bank isn't directly connected, you can download and import transactions with ease.

Sage, on the other hand, supports about 50 banks. If there's no direct feed, you can get a statement online and then import the details.

Winner: 

Xero dominates with its extensive bank connections.

Online payments 

Xero allows your customers to pay online invoices using debit or credit cards and even with digital wallets like Apple Pay and Google Pay. It also integrates seamlessly with top payment gateways like Stripe, PayPal, and GoCardless.

Sage, meanwhile, supports invoice payments via debit or credit cards and also integrates with Stripe.

Winner: 

Xero comes out on top with its broader range of payment gateways.

Projects 

Xero shines with its Projects feature. It's a space where you can quote, invoice, monitor job profitability, and expedite payments. You can create unlimited projects, either for sharing with team members or for private access. 

Each project can include contacts, descriptions, estimates, due dates, tasks, and more. And as a project takes shape, it can be populated with tasks and expenses.

Sage doesn't have a project accounting feature. 

Winner: 

Xero clearly excels in project management. While Sage Accounting doesn't offer this feature, you'll need to explore Sage 50cloud for a comparable function.

Integrations

Xero integrates with over 800 third-party apps. If that's not enough, it connects with thousands more using Zapier and even offers APIs for custom needs.

On the other hand, Sage Accounting links with 41 select apps via the Sage Marketplace. This selection includes known names like Zapier, Gusto, 9Spokes, CollBox, and Zynk Workflow.

Winner: 

With its extensive integration list, Xero takes the lead.

A note on Sage Xero integration

Unfortunately, there’s no native Xero Sage integration. However, the two apps can be connected via a connector app like Zapier. With Zapier, you can create Zaps (automated workflows) that connect your apps and automate tasks. 

Sage or Xero for expense tracking 

With Xero, you can efficiently track expenses, categorize them, bill your clients, and even assign an expense to a particular client. All Xero plans include this expense tracking feature. 

If you need enhanced capabilities, there's a "claim expenses" add-on at $4/month for each user that lets you capture and get reimbursement for expense claims.

On the other hand, Sage Accounting offers automation benefits. By linking your bank account and using the AutoEntry tool, free for the initial three months, you can automatically capture and post invoices and receipts.

Winner: 

Xero provides a more in-depth expense management experience right from the start.

Bill payment

Xero stands out in bill payment. On its basic plan, you can add up to five bills, but this limit is lifted on premium plans. Hubdoc makes it easy to capture receipts, helping you see upcoming bills and set up batch payments.

The bill payment feature is not available in Sage Accounting. You need to subscribe to one of the plans of Sage 50 Accounting to get access to this feature. 

Winner: 

Xero has the upper hand in bill management.

Is Xero better than Sage? Our conclusion

After comparing Sage and Xero, each accounting system has clear strengths. Xero, scoring 53 points, is ahead of Sage's 33 points. Keep in mind this doesn't mean Xero would be the best choice for all scenarios. 

For freelance accountants, small entrepreneurs, and microbusinesses, we recommend Sage. The tool is highly affordable and easy to onboard, and it's designed to make accounting straightforward.

On the other hand, Xero's accounting software offers a wider range of features, which makes it better for small business owners and medium-sized businesses. If you need more advanced tools, also look at Sage's other products, Sage 50cloud and Sage Intacct.

Still undecided? Check out our list of the best accounting software to see how these two solutions compare to other leading cloud-based accounting names in the market.

Good luck with your choice!