Accounting software has become an essential tool for small businesses to manage their finances efficiently. Two of the most popular accounting platforms for small businesses are QuickBooks vs Sage. But which one should you choose for your company?
This comprehensive guide compares key features, strengths and weaknesses of QuickBooks vs Sage to help you determine the best accounting solution for your small business needs and budget.
Introduction
QuickBooks and Sage are two industry-leading accounting and finance management platforms built to cater to small and mid-sized businesses. They automate everyday accounting tasks like invoicing, reporting, tracking expenses and managing payrolls.
While they share some common capabilities, these platforms have key differences in their tools, integrations, scalability and pricing. Read on as we compare them across these factors to help you make an informed decision.
Ease of Use
QuickBooks positions itself as an intuitive software allowing small business owners to set up and start using the software quickly without needing extensive accounting knowledge. Its simple and clean interface makes day-to-day accounting easy for most users even without prior bookkeeping experience. Everything is accessible from a single dashboard allowing users to generate invoices, reconcile bank accounts and view timely reports easily.
Sage also focuses on usability but has a slightly steeper learning curve compared to QuickBooks, especially for their desktop offerings. The toolkit can be overwhelming for brand new accounting users. However, Sage is actively improving user experience across its cloud-based products. For instance, Sage Accounting, its online accounting software package, offers an intuitive design to simplify accounting tasks.
In summary, QuickBooks edges out when it comes to user-friendly and simple navigation, while Sage offers powerful customization suitable for experienced bookkeepers.
Key Features and Capabilities
QuickBooks’ core features include managing income and expenses, invoicing, inventory management, multi-user access, payroll services, reporting and bank reconciliations. It connects with many third-party business applications. Users can also extend functionality by installing add-ons.
Sage Accounting also handles essential accounting activities and integrates with 350+ apps. Sage’s offerings target specific industry needs with customized capabilities using add-ons and integrations. Unique tools that set Sage apart include project accounting, advanced budgeting and integrated payment processing through Sage Payments.
For basic bookkeeping features, QuickBooks and Sage are on par. QuickBooks offers better ease-of-use whereas Sage provides customizable industry-specific capabilities.
Reporting and Analytics
Both Sage and QuickBooks allow users to generate common financial reports quickly like profit and loss statements, balance sheets, accounts receivable, accounts payable, general ledgers and tax summaries.
However, Sage offers more advanced custom reports and dashboards for data-driven insights – especially helpful for making strategic decisions. Sage Intelligence and Sage Impact are two popular reporting tools that come with some Sage products to build financial reports, track KPIs and analyze trends.
Scalability and Accessibility
Quickbooks is available as both desktop and cloud-based software (QuickBooks Online). QuickBooks Online uses a SaaS model allowing anytime, anywhere access via web browser and mobile devices. It can support up to 25 users on its most expensive plan.
Sage also offers both on-premise and cloud products. Sage’s solutions can scale from small startups to larger enterprises supporting hundreds of simultaneous users – making it suitable for relatively bigger organizations.
Sage Accounting is Sage’s true cloud accounting system accessible from any device. Sage’s top-tier desktop system, Sage 300 CRE, can support high transaction volumes from multiple locations and users by hosting data on an on-site/private server.
Overall, Sage comes out ahead in terms of advanced scalability needs for larger businesses, while QuickBooks offers the convenience of cloud access for micro and small businesses.
Third Party Integrations
QuickBooks Online integrates with over 500 third-party business applications like PayPal, Shopify, Gusto and Mailchimp using cloud connectors. This allows small businesses to extend the capabilities and functionalities of QuickBooks based on their unique needs. However, the depth of these integrations may be limited compared to custom-built solutions.
Sage also has a growing marketplace of third-party integrations, especially surrounding ecommerce, payroll, POS systems and CRM tools. In addition, Sage offers API access allowing developers to build custom integrations tailored to an organization’s specialized workflows.
Both Quickbooks and Sage cover integrations with popular business applications. However, developers may find more robust API access and customization capabilities with Sage.
Customer Support
QuickBooks provides 24/7 chat, email and phone support. However, phone assistance is limited to higher-tiered subscriptions only. There is also an extensive library of FAQs and how-to articles on their help and training site. Users can also access QuickBooks’ large community forums to get insights from other users and thought leaders.
Similarly, Sage offers 24/7 award-winning support accessible by live chat, online tickets and phone assistance. Phone and chat supports are only available in higher-priced plans. Sage also provides an online knowledge center with tutorials, documentation and a community forum for peer insights much like QuickBooks.
When comparing the support offerings, QuickBooks and Sage offer comparable options for accessing expert help. Phone lines and faster response times are reserved for premium subscribers. Otherwise, both platforms provide sufficient self-help content and community platforms for everyday troubleshooting.
Pricing and Plans
Quickbooks Online has three pricing tiers ranging from $25 to $75/month base on number of users supported and features available. Upgrades can unlock features like custom fields, custom roles and advanced reporting. Add-ons for payroll, payments and 1099 contractors are extra. Yearly discounts are offered making the effective monthly cost cheaper.
Sage Accounting starts at $25/month while Sage’s SMB products range from $65 to $150 monthly. Similar to QuickBooks, discounts apply for annual commitments. There are also premium bundles that pack together various Sage apps at a package price point. Payroll, payments and 1099 services also cost extra per month with Sage Payroll starting at $45/month per location.
Overall, Sage and QuickBooks are competitively matched when it comes to monthly pricing models for core accounting capabilities. However, costs can quicky add up once you account for additional services like payroll in both options.
QuickBooks Pros and Cons
Pros:
- Very user-friendly and easy to use
- Comprehensive mobile apps
- Seamless cloud access and remote collaboration
- Large third-party integrations marketplace
- Scales from very small to mid-sized businesses
Cons:
- Limited customization compared to Sage
- Can get expensive with add-ons pricing model
- Advanced reporting requires upgrades
Sage Pros and Cons
Pros:
- Packed with advanced features and customization
- Robust scalability potential
- Specialized tools for niche industries
- Powerful reporting and analytics capabilities
Cons:
- Steeper learning curve, especially older desktop products
- Costly implementation for larger organizations
- Fragmented mix of products can be confusing
Which Should You Choose QuickBooks vs Sage?
With both Sage vs QuickBooks offering robust accounting features for SMBs, how do you determine which solution best fits your business requirements?
Businesses should choose QuickBooks Online if they value simplicity, ease-of-use and seamless cloud access on a configurable platform that can serve micro to small-sized business needs. The ideal QuickBooks users are growing startups and small teams that want straightforward accounting software covering their basics with some room to scale.
On the other hand, medium and larger businesses needing advanced accounting tools, complex reporting and niche industry specialization will benefit more from Sage software. Sage also offers greater customization potential at an enterprise-level allowing monetization opportunities for supporting partners and accountants.
Also Read About :- QuickBooks Considered the Top Choice Among Other Software
Conclusion
QuickBooks and Sage are both excellent accounting systems for streamlining small business finances. QuickBooks prioritizes intuitive design allowing any small business owner to quickly manage common bookkeeping activities. Sage offers a powerful portfolio customized for specific industries and greater long term scalability suitable for larger organizations.
Assess your current and future company requirements to determine whether simplicity or customization is more critical when choosing between these two capable solutions. Both platforms can help you gain control over company finances and provide valuable insights to fuel growth. Leverage free trials to experience the differences firsthand during your buying decision journey.
With smart evaluation of your needs and strategic software adoption, you can establish efficient accounting operations using either of these trusted platforms as the foundation.
