Sage200 vs Xero

Sage 200 to Xero: Why Businesses Are Making the Switch

Many businesses we speak with are looking at migrating from Sage200 to Xero, frequently encountering a common challenge when upgrading their accounting software: the process of choosing the right solution can be overwhelming.

Sage 200 vs Xero: Evaluating Business Fit Based on Transactions and Turnover

When assisting our clients, we typically start by assessing their monthly transactions, which helps us recommend the most suitable accounting package. For most businesses that are a good fit for either Sage 200 or Xero, with an additional accounting add-on, annual turnover tends to range between £1 million and £25 million. Companies outside of this range often find that their requirements are either too complex or too simple for these packages to provide an optimal solution.

Comparing the Costs: Sage 200 vs Xero

In terms of pricing, a transition or upgrade to Sage 200 generally costs between £20,000 and £50,000, excluding server costs, upgrades, and annual support fees. By contrast, moving to Xero, even when paired with inventory apps, is typically much more affordable.

Inventory and Product-Based Businesses: Sage 200 vs Xero Functionality

For businesses dealing heavily with products, Xero alone may not suffice. Without key inventory add-ons, its core version lacks essential functionalities such as bills of materials, traceability, comprehensive stock management, discount rules, and stock alerts, to name a few. Sage 200 does come equipped with some of these features, but it also falls short in other areas such as accepting online quotes, offering payment links on invoices, automated reminders, flexible reporting, and e-commerce integration. However, with the addition of the right inventory add-ons, Xero becomes a highly customizable, feature-rich solution, potentially outperforming Sage in many areas.

Sage 200 vs Xero: Customisation and Integration Capabilities

In terms of customization, Sage 200 offers very limited options due to its lack of an API (Application Programming Interface). This restricts the ability to integrate external apps and add-ons, resulting in higher maintenance and update costs. Xero, on the other hand, benefits from a modular design and a growing ecosystem of over 1000 external apps and add-ons, providing businesses with greater flexibility and customization options to meet their needs.

Cloud Access and Usability: Sage 200 vs Xero for Remote Teams

One of the most appreciated aspects of cloud accounting, particularly by our clients, is the increased accessibility. Sage 200, being server-based, requires a Virtual Private Network for remote access, which can be inconvenient for most business owners and accountants. In contrast, Xero’s cloud-based, mobile-friendly design allows access from any location on any device. Additionally, its external add-ons, such as inventory apps like Cin7, offer advanced reporting features that can be tailored to the specific needs of a business. This is significantly enhancing its usability and flexibility.

Final Verdict: Should You Migrate from Sage200 to Xero?

Ultimately, Sage 200 carries a higher initial cost, while Xero, even with additional inventory add-ons, offers a more affordable and comprehensive solution. Xero’s extensive range of external apps and cloud-based accessibility provide greater flexibility and customization, making it a more attractive choice for businesses looking for scalability and ease of use. If you’re still unsure which option is right for your business, we’d be happy to assist.

We migrated over 500 Sage 200 clients to Xero, check our most recent group xero migration from Sage 200.

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03/10/2024/Migrate My Accounts