Choosing Between Xero and Sage: What CPA Firms Need to Know

Choosing the right accounting software is crucial for effectively managing your rental properties. Xero and Sage are two excellent options for small firms trying to simplify their accounts. Both have been acknowledged for their strong invoicing capabilities and efficient bank transaction reconciliation, making them top contenders on our list of the best accounting software.

In this comparison of Xero vs Sage, we will help you decide on the ideal accounting solution for your needs. Xero is renowned for its user-friendly interface and ability to handle basic accounting tasks like creating invoices, Sage offers more advanced tools, particularly suited for larger businesses and industries such as real estate and construction.

Xero And Sage: Which Accounting Software Is Best for Your Business?

• Invoicing & Quotes: When comparing Xero vs Sage, the focus lies on their respective invoicing features. Xero allows for extensive customization of invoices, including adding your logo and personalizing text, which enhances the professional look of your billing. Additionally, Xero offers automated payment reminders, reducing the hassle of tracking overdue payments. 
  
  

On the other hand, Sage stands out by simplifying the transition from quotes to invoices. Sage’s partnership with Stripe makes it easy to accept credit card payments, which further integrates into its strong invoicing and quoting capabilities.

• Bill Payment & Accounts Payable: Xero shines in bill payment. You can enter up to five bills on the base plan, but higher plans offer unlimited bills. Xero also integrates with Hubdoc for easy receipt capture, helping you manage and schedule payments efficiently. Sage’s accounts payable features provide clear insights into your cash flow but lack automated bill payment. You’ll have to manually pay bills from your bank account, which can be a drawback if you’re looking for a fully automated solution.
  
  

• User Access: Xero Offers unlimited users on all plans. This is a huge advantage for larger teams or businesses with multiple people needing access to the software. In Saga, You’ll only get unlimited users with Sage’s more expensive plans, which might not be cost-effective for smaller businesses.
  
  

•  Xero vs Sage Payroll: Xero partners with Gusto Payroll, starting at $40 per month plus $6 per employee. This integration is simple to set up and operates without a hitch. Saga offers its proprietary Sage People Payroll, pricing tailored to your business needs. Sage offers additional products like HR management (Sage HR) and time tracking (Sage Timeslips).
  
  

• Integrations: With over 1,000 apps in the Xero App Store, you have plenty of options to enhance your accounting system. Whether it’s Shopify, Stripe, PayPal, or industry-specific tools, Xero’s integration options are vast. Sage Accounting has 41 apps available through the Sage Marketplace, offering solid choices but fewer options than Xero.
  
  

• Customer Support: In Xero vs Saga, xero lacks a dedicated customer service phone number but offers 24/7 online support and a robust help center. Sage provides a dedicated phone number for customer support, with live chat and limited 24/7 online support through an online community.
  
  

Conclusion

When CPA firms are weighing Xero vs Sage, their decision should be guided by the firm’s size, industry, and specific needs. Sage often becomes the top pick when advanced features and customization options are crucial for operations. On the other hand, if simplicity and a more intuitive user experience with essential accounting tools are preferred, Xero could be the better option. The key is carefully assessing your firm’s requirements and operational goals before choosing between these two software platforms.

Additionally, using Meru Accounting can provide further expertise and tailored advice, offering a straightforward solution for firms seeking expert guidance in financial management. Evaluate each option based on your firm’s requirements to find the best fit.

FAQs 

1. Why would a CPA firm switch from Sage to Xero?
   Many firms move to Xero for its simple setup, unlimited users, and broad app links. It often suits teams that want less setup work and more online tools.
2. Is Sage still worth it for small accounting teams?
   Yes, if you need advanced reports, strong job tracking, or built-in payroll. For small teams with complex work, Sage can still be a good pick.
3. How do I know if my firm has outgrown Xero?
   If you need more niche tools, deep industry reports, or tight links to HR systems, you might be ready for Sage. Growth in team size or service range can also be a sign.
4. Can I use both Xero and Sage at the same time?
   It’s possible, but it can cause extra work. Most firms pick one to keep records clear and avoid data sync issues.
5. Which software is better for remote teams?
   Xero works well for remote teams due to its cloud setup and large app store. Sage also works online, but Xero’s simple user access can be a big plus for off-site staff.
6. Does the choice affect my clients?
   Yes. Your choice can change how fast you send invoices, share reports, or link with client systems. The smoother the tool, the better the client experience.
7. How hard is it to move my data from one to the other?
   It’s not too hard, but you need care. You must back up data, export in the right file type, and test the new system before going live.
8. What’s the biggest risk in choosing the wrong software?
   The main risk is wasted time and cost. If the tool doesn’t fit your needs, you may face limits that slow your work or force you to change later.