Accounting Software

Sage Accounting vs Xero

Both are accounting software. The short answer: choose Sage Accounting if you are uK small businesses and sole traders filing VAT under Making Tax Digital; choose Xero if you are small businesses and accountants in the UK, Australia and New Zealand.

Some links on this site are affiliate links. If you buy through them we may earn a commission at no extra cost to you. Our rankings are not for sale; sponsored placements are always labelled.

Sage Accounting logo Sage AccountingXero logo Xero
Best forUK small businesses and sole traders filing VAT under Making Tax DigitalSmall businesses and accountants in the UK, Australia and New Zealand
Free planNo (trial may exist)No (trial may exist)
PricingSee providerSee provider
Built for IndiaGlobalGlobal
CategoriesAccounting SoftwareBilling & Invoicing Software, Accounting Software
Strengths
  • HMRC-recognised for Making Tax Digital
  • Familiar to UK accountants
  • Payroll add-on
  • Clean, fast reconciliation
  • Unlimited users on plans
  • Big integration marketplace
Watch out for
  • Interface less modern than some rivals
  • Features vary by country edition
  • Payroll availability depends on country
  • Lower plans cap some transactions
Visit Sage AccountingVisit Xero

Which should you choose?

Sage Accounting: Cloud accounting from Sage with invoicing, bank feeds, VAT returns and Making Tax Digital submissions to HMRC.

Xero: Cloud accounting platform known for bank reconciliation, invoicing and a large app marketplace.

The best way to decide is to run the same week of real work through both — most offer a free plan or trial — and compare how long tasks take, what your team prefers, and the total cost for your number of users including renewal pricing.

Not sure either fits? See all accounting software compared.