When it comes to choosing accounting software for your business, Sage and Xero are two of the biggest contenders. Both offer powerful tools for managing finances, but they cater to slightly different needs.
Xero is predominately used by smaller businesses and the self-employed, whilst Sage cover’s a wider spectrum of business sizes from small businesses to SMBs and medium-sized businesses. Whether you’re a business owner, freelancer, or running a larger operation, the right choice depends on your specific requirements.
In this blog, we’ll compare Sage and Xero in key areas to help you decide which is best for your business.
Xero is known for its user-friendly interface. It’s cloud-based, meaning you can access it from anywhere, and its clean design makes it easy to navigate. Even if you have little to no accounting experience, Xero provides helpful prompts and a simple dashboard that displays key financial information at a glance. It has three accounting software plans (Starter, Standard & Premium) and is Ideal for beginners and non-accountants alike.
Sage has a steeper learning curve, especially for beginners. It offers more in-depth accounting tools, which can be beneficial for accountants but may be overwhelming for small business owners. However, once mastered, Sage provides powerful financial insights and customisation options.
Sage has four market leading Cloud finance solutions in the UK:
As your business grows and requires more automation for complex accounting processes, the differences between Sage and Xero become clearer. Established small businesses, SMBs, mid-sized companies, and large enterprises often need a more flexible, configurable, and scalable financial management system – one that can support additional accounting modules to meet evolving demands.
Xero is great for small businesses that need an all-in-one cloud solution with plenty of integrations. Sage, on the other hand, offers more advanced financial management tools, making it better for medium to large businesses.
Sage Intacct Received the Highest Score for Core Financials for the 5th year Running from Gartner. It also received the highest #1 score in Customer Satisfaction Ratings from G2.
*Note: Sage is currently (at the time of writing – March 2025) offering the first three months free for these plans.
Both platforms have similar pricing, but Xero includes more features in its lower-tier plans, making it a better value for smaller businesses.
Xero is excellent for growing businesses. It allows you to add more users and integrate with various business tools. However, it may lack some advanced financial management features for large enterprises.
Sage is highly scalable and is designed to handle more complex accounting needs. It’s often used by medium to large enterprises because of its advanced reporting and forecasting tools.
Sage is highly scalable and is designed to handle more complex accounting needs. It’s often used by medium to large enterprises because of its advanced reporting and forecasting tools.
Xero offers 24/7 online support but does not provide phone support. Most queries are handled via chat or email, which may be slow for urgent issues.
Sage provides phone, email, and chat support, making it easier to get quick help. Sage also has a long-standing reputation for strong customer service.
Xero integrates with over 1000 apps, including CRM, eCommerce, and payroll software. It’s highly flexible for businesses that use multiple tools.
Sage also integrates with many third-party apps but has fewer integrations compared to Xero.
In this regard, Sage beats Xero.
| Category | Sage Integrations | Xero Intergrations |
|---|---|---|
CRM & Sales |
Salesforce
HubSpot |
Pipedrive HubSpot |
eCommerce |
Shopify Amazon |
Shopify WooCommerce |
Payment Processing |
PayPal Stripe Square |
PayPal Stripe GoCardless |
Expense Management |
Expensify Dext |
Dext Hubdoc |
Inventory Management |
Unleased TradeGecko |
Unleased Cin7 DEAR |
Payroll & HR |
Workday ADP |
Xero Payroll Deputy |
Financial Reporting |
Futril Fathom |
Spotlight Reporting Fatril |
Banking & Reconiliation |
Most Major Bank Sage Pay |
Most Major Bank Direct Bank Feeds |
You need extensive third-party integrations
Ultimately, Xero is best for small to medium businesses, while Sage is better for larger businesses with more complex needs. The right choice depends on your business size, budget, and specific accounting requirements.
Still unsure? Most providers offer free trials, so you can test both before making a final decision!
Our team of IT specialists is here to help you navigate the ever-evolving world of technology, ensuring your business maximizes its potential. Connect with one of our experts today to discover how we can assist in implementing the right business technology to streamline your operations and drive efficiency.
Agnes Molnar
Agnes is Syn-Star’s expert content writer, she has Master’s degree in English Literature that provides a strong foundation in writing and critical thinking of everything she does.
Qualifications: Masters in English Literature
In-house training: HubSpot SEO, WordPress Training.
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Agnes Molnar
Agnes is Syn-Star’s expert content writer, she has Master’s degree in English Literature that provides a strong foundation in writing and critical thinking of everything she does.
Qualifications: Masters in English Literature
In-house training: HubSpot SEO, WordPress Training.
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