As an entrepreneur or business owner, choosing the right accounting software is crucial for your business. Having the right accounting software can help you make better business decisions, reduce errors, save time and increase productivity. However, choosing the right accounting software can be a daunting task, especially with so many options available in the market. In this article, we will compare two popular accounting software – Sage Accounting and Xero.
Sage Accounting
Sage Accounting, formerly known as Sage One, is an online accounting software specifically designed for small and medium-sized businesses. Sage Accounting offers a range of features that enable business owners to manage their finances easily. Some of the features of Sage Accounting include:
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Invoicing and payment: Sage Accounting enables business owners to create invoices, track payments, and manage their cash flow in real-time.
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Bank reconciliation: Sage Accounting offers automatic bank reconciliation, which means that transactions are automatically matched to your bank statements, saving you valuable time.
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Expenses and purchase management: Sage Accounting enables users to manage expenses, purchase orders, and vendor bills, all in one place.
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Smart reporting: Sage Accounting offers a range of reports that provide a clear and comprehensive picture of the financial health of your business.
Xero
Xero is another popular accounting software, designed to help small businesses manage their finances. Xero offers a range of features that enable businesses to manage their finances more efficiently. Some of the features of Xero include:
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Invoicing and payment: Xero enables businesses to create professional invoices, track payments, and get paid faster.
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Bank reconciliation: Xero automatically imports and categorizes bank transactions, making it easy to reconcile your bank accounts.
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Expenses and purchase management: Xero enables businesses to accurately track expenses, purchase orders, and manage vendor bills.
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Smart reporting: Xero offers a range of reports that provide insights into the financial health of your business.
Sage Accounting vs. Xero
| Feature | Sage Accounting | Xero |
|---|---|---|
| Price | Starts at $10/month | Starts at $11/month |
| Invoicing and payment | Yes | Yes |
| Bank reconciliation | Yes | Yes |
| Expenses and purchase management | Yes | Yes |
| Smart reporting | Yes | Yes |
| Payroll management | Yes | Yes |
| Mobile app | Yes | Yes |
As you can see, both Sage Accounting and Xero offer very similar features. However, there are some differences between the two software that are worth mentioning.
For instance, Sage Accounting offers payroll management, which Xero does not. This means that if your business requires payroll management, Sage Accounting might be a better option for you.
On the other hand, Xero's starting price is just $11/month, while Sage Accounting's starting price is $10/month. This might seem like a small difference, but it can add up over time, especially if you're a small business.
Both Sage Accounting and Xero offer mobile apps that enable business owners to manage their finances on the move. However, Xero's mobile app is more user-friendly and easier to navigate than Sage's.
Conclusion
At the end of the day, both Sage Accounting and Xero are excellent accounting software options that offer a range of features to help businesses manage their finances. The software you choose will ultimately depend on your business's unique needs and requirements.
However, if you're looking for an accounting software that offers payroll management, Sage Accounting might be a better option for you. On the other hand, if you're looking for a user-friendly mobile app and a slightly lower starting price, Xero might be the best option for you.
Regardless of which software you choose, it's important to research and compare all options available to you to make an informed decision.
References
- Sage Accounting. (2021). Sage Accounting - Online Accounting Software. [online] Available at: https://www.sage.com/en-ca/products/sage-accounting/ [Accessed 25 Oct. 2021].
- Xero. (2021). Accounting Software - Do Beautiful Business | Xero US. [online] Available at: https://www.xero.com/us/ [Accessed 25 Oct. 2021].