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Blog » An In-depth Comparison between Xero and Sage Accounting Software

An In-depth Comparison between Xero and Sage Accounting Software

Last updated: 22 Dec, 2023 By | 6 Minutes Read

accounting software

Whenever a new software is launched in the market endeavoring to transform the way things are carried out, it’s expected that comparisons are likely to be made between that software and the more proven ones in the same market.

The same can be said with regards to bookkeeping and accountancy software. A lot of comparisons and conversations are going to be held with respect to the best bookkeeping software for businesses these days.

Xerox and Sage are two well-recognized accounting software that give each other a tough competition. Let us take a look at certain areas where we can do a comparison between both these software:


The standard entry version of Sage referred to as ‘Instant’ can be bought for about £120 + VAT. At this price, you obtain a single company, single user variation to be used on one PC. This is where Sage proves to be a less expensive alternative when you just need access to the data from a single machine by one end user.

Xerox, however, operates on a subscription dependent price model, for equivalent capabilities to Sage Instant and the cost for the same is £20 + VAT (as of March 2015) per month. At this price, you receive consistent software upgrades and cost-free round-the-clock customer support.

Additional expenses to take into consideration when using Sage and Xero are extra users and companies. In case you operate multiple companies, Sage is going to bill an additional amount to include a company to their program. Xero users are added for free and there is absolutely no restrictions on the same.


A lot of skilled users who’ve migrated from Sage to Xero have stated about how straightforward Xero was to implement in comparison to Sage. Xero definitely appears a lot cleaner and simpler to navigate. Xero is able to share information since users can easily log in and refer to the data live, on the other hand, Sage is confined to desktop computers and necessitates backups of data to present the required information.

Sage comes with an accountant’s link feature to share data with accountants and advisors, nevertheless, from practical experience this is simply not the best of options to make use of.


Attribute wise each of them consists of the similar basic features, each containing bank reconciliations, revenue and purchase ledgers, VAT return features, capacity to modify and insert codes, and build fresh accounts. Sage accounting software offers extra reporting benefits in addition to the capability to generate personalized reports, with selected versions containing sales and purchase orders, a feature that Xero fails to support.

While Xero excels in its potential to link up with your banking accounts and retrieve bank transactions directly into the program, this on its own is generally a massive time saver based on the kind of business.

Xero also offers the option for users and customers to include in a wish list of functions they would wish to see, thus for the reason that the software is continually developing and enhancing over a stretch of time.


Being a desktop dependent program, Sage is prone to loss of information in case anything was to happen to the PC being utilized. Constant backups are essential to eliminate this possibility. Xero’s information is saved online similar to a website, the data is archived on auto-pilot, so no back-up regimens are needed.

Our verdict according to the above considerations and previous experiences is that both Sage and Xero are distinct beasts that feature clear strong points in their own right. Should you be looking at a program for your business, the ideal choice would be to go for a trial/demo of the both the software before taking the plunge.

The team of expert accountants at Cogneesol are well-versed with both these accounting software and can offer you cost-effective accounting outsourcing services. Get in touch with us today and start your free trial.