Head to head
Sage Accounting (formerly Sage Business Cloud Accounting) vs Xero
Both platforms are scored with the same methodology and the same category rubric. Nothing on this page is influenced by advertising.
49/100 | 64/100Higher score | |
|---|---|---|
| Category rank | #8 | #2 |
| Confidence | High confidence | High confidence |
| External Reputation | 76 | 80 |
| AI Authority | 16 | 56 |
| Web Authority | 48 | 56 |
| Expert Assessment | 50 | 57 |
| TOP10 User Score | — | — |
| Pricing | £20/month + VAT (Start) — promotional £2/month for first 6 months · free tier: No free plan; alternative to the promotional discount is 1 month free on any tier | USD $25/month (Early), rising to $27/month from 1 October 2026 · free tier: No permanent free tier; one month free starting once business setup is finalized, with a reminder 7 days before it ends |
| Pricing model | Subscription | Subscription |
| Best for | UK-based VAT-registered sole traders and small businesses with 1–5 employees that want accounting plus payroll from one vendor at a low monthly price, with Making Tax Digital and CIS handled out of the box; those with inventory or foreign-currency trading should start on Plus. | Small businesses that want invoicing inside a full double-entry ledger, teams needing many free user logins, and firms already working with an accountant in the Xero partner ecosystem. |
| Avoid if | You are a US business (the product is retired and unsupported — Sage directs you to Sage 50), you need multiple users but are tempted by the single-user £20 Start tier, you have a large headcount relative to the bundled employees, or you need certainty on subscription admin and refunds. | You want a pure invoicing tool, bill only a handful of clients a month, need multi-currency or international payments on a budget, or require phone support when money or access is stuck. |
| Markets | SMB, Sole traders, Micro-businesses | SMB, Accountants and bookkeepers, Agencies |
| Founded | 1981 | — |
| Headquarters | Newcastle upon Tyne, United Kingdom | — |
A higher TOP SCORE means more of the evidence favours that platform on this methodology — it is not a recommendation, and it does not account for your specific requirements. Advertisers are never declared the winner of a comparison.