Introduction
Accounting is an essential function for any business, big or small. But gone are the days when you needed a physical ledger book to record financial transactions. Now, businesses can use cloud accounting software to manage their finances efficiently. In this post, we will compare two popular cloud accounting applications Xero and Sage Business Cloud Accounting, highlighting their features, pricing, pros, and cons to help businesses make an informed decision.
Pricing
Pricing is a critical factor when choosing any business software. Let’s compare the pricing of Xero and Sage Business Cloud Accounting.
Xero
Xero offers three pricing plans:
- Early: $11/month for up to 20 invoices, 5 bills, and reconciliation each.
- Growing: $32/month for unlimited invoices, bills, and reconciliation each.
- Established: $62/month for unlimited invoices, bills, and reconciliation each.
Sage Business Cloud Accounting
Sage Business Cloud Accounting offers three pricing plans:
- Accounting Start: $10/month for unlimited transactions and one user.
- Accounting: $25/month for unlimited transactions and multiple users.
- Accounting Plus: $40/month for additional features like inventory management and sales invoices.
Features
Both Xero and Sage Business Cloud Accounting offer several features that make managing finances more accessible. Let’s compare some of the key features of both applications.
Xero
- Invoicing: Create and send invoices to customers, track payments, and enable online payments.
- Bills management: Manage bills and expenses, track due dates, and set reminders.
- Bank reconciliation: Reconcile bank transactions in Xero and reduce errors.
- Inventory tracking: Manage inventory levels and get alerts for low stock levels.
- Payroll management: Manage employee payroll, track work hours, and process payments.
Sage Business Cloud Accounting
- Invoicing: Create and send invoices easily and track payments.
- Bank reconciliation: Reconcile bank transactions easily and accurately.
- Cash flow management: Get insights into cash flow and manage inflows and outflows.
- Expense management: Track expenses and bills, and set reminders for payment dates.
- Reports: Get detailed financial reports like profit and loss, balance sheet, and cash flow statements.
- Mobile app: Manage your accounting needs on-the-go with the mobile app.
Pros and Cons
Every software has its pros and cons, so let’s compare the pros and cons of Xero and Sage Business Cloud Accounting.
Xero
Pros
- User-friendly interface
- Automated bank feeds
- Third-party integration
- Good customer support
Cons
- Limited inventory support
- No project management
- Expensive compared to some competitors
- Limited customization options
Sage Business Cloud Accounting
Pros
- Affordable pricing
- Easy to navigate interface
- Multi-user support
- Inventory and purchase management
Cons
- Limited automation
- No mobile app on the starter plan
- Limited invoicing options
- No payroll management on the starter plan
Conclusion
Choosing between Xero and Sage Business Cloud Accounting depends on your business needs and budget. Xero is ideal for businesses that require robust features and are willing to pay more for them. Sage Business Cloud Accounting, on the other hand, is ideal for small to medium-sized businesses that want an affordable accounting solution with essential features.