Sage200 vs Xero

03/10/2024|Migrate My Accounts|Our Blogs

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

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.

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.

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.

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.

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, significantly enhancing its usability and flexibility.

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 work closely with many great system advisors, we joined our forces to help businesses bring efficiencies and reduce software costs.