An honest, side-by-side comparison of the two most popular accounting platforms in the UK — with clear recommendations for different firm types.
Cloud-native accounting with the strongest integration ecosystem in the UK.
Best for: Most UK firms, especially those wanting best-in-class integrations
Pricing: Plans start from £15/month (Starter) to £47/month (Premium). Partner pricing available for accounting firms. All plans include unlimited users.
A well-known UK brand with solid compliance features and improving cloud capabilities.
Best for: Firms already invested in the Sage ecosystem
Pricing: Sage Accounting starts from £14/month. Various add-ons available.
How Xero and Sage stack up across the features that matter most to UK accounting firms.
| Feature | Xero | Sage Accounting |
|---|---|---|
| Bank Feeds | Automatic feeds with smart reconciliation | Automatic feeds with reconciliation |
| Invoicing | Built-in with online payment options | Built-in invoicing and quotes |
| MTD Compliance | VAT and Income Tax compliant | VAT and Income Tax compliant |
| Integration Ecosystem | 1,000+ apps via marketplace | Smaller ecosystem, mainly Sage products |
| Multi-Currency | Full support with live exchange rates | Supported but less comprehensive |
| Reporting | Good built-in, excellent with add-ons | Solid but fewer customisation options |
| UK Compliance | Strong HMRC integration | Deep UK compliance heritage |
| User Interface | Modern, cloud-native design | Modernised but can feel dated |
| Mobile App | Full-featured mobile app | Functional but more limited |
| Payroll | Requires third-party integration | Built-in payroll add-on available |
| Pricing | From £15/month, unlimited users | From £14/month |
| Customer Support | Can be slow for non-partners | Responsive UK-based support |
Both platforms offer monthly subscriptions with no long-term contracts required.
All plans include unlimited users. Partner pricing available for accounting firms.
Various add-ons available. Pricing can vary across the Sage product range.
The right choice depends on your firm's specific situation. Here is our recommendation for each scenario.
Xero
Xero is the stronger choice for most UK accounting firms. The larger integration ecosystem, unlimited users on all plans, and mature cloud-native platform give it a clear edge. If you are setting up a new firm or switching from desktop software, Xero should be your default starting point.
Read full Xero review →Sage Accounting
If your firm currently uses Sage 50 or other Sage desktop products, migrating to Sage Accounting is the path of least resistance. The familiar interface, data migration tools, and continuity within the Sage ecosystem make the transition smoother than switching to an entirely new platform.
Read full Sage Accounting review →Sage Accounting
Sage Accounting starts at £14/month compared to Xero's £15/month, and includes responsive UK-based support without needing a partner programme. For smaller firms watching every pound, Sage delivers solid core accounting features at a slightly lower price point.
Read full Sage Accounting review →Book a free discovery call and we will help you choose the right accounting software for your specific needs.
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