Xero vs Sage Accounting
Verified ratings, real UK pricing and the compliance detail, weighed side by side — with a written verdict at the end.
Xero
Accounting Software
- United Kingdom
- Ireland
- New Zealand
- Australia
- United States
- Canada
- South Africa
- Live Chat
- Knowledge Base
- Forum
Sage Accounting
Accounting Software
- United Kingdom
- Ireland
- Phone
- Live Chat
- Knowledge Base
- Forum
Xero leads on verified reviews by 0.2 of a point — 4.1 against 3.9 for Sage Accounting.
The short version
What each one costs and how each one rates, side by side. Only the rows where leading means something are marked; vendor and availability are in the overview above.
| Detail | Xero | Sage Accounting |
|---|---|---|
| What it costs | ||
| Starting priceLowest paid tier, excluding VAT | £16/mo | £20/mo |
| Free version | NoNo | NoNo |
| Free trial | YesYes | YesYes |
| How it rates | ||
| Overall ratingMean of verified Assaylist reviews | 4.1 | 3.9 |
| Verified reviewsVolume is evidence, not a score — this row is not a contest | 297 reviews | 206 reviews |
Highlighted where one clearly leads. Rows without a highlight are not a contest.
How reviewers score them
Across the four dimensions we ask every reviewer about. The widest gap is ease of use, at 0.2 of a point.
- Xero
- Sage Accounting
| Dimension | Xero | Sage Accounting | Gap |
|---|---|---|---|
| Ease of use | 4.0 | 3.8 | 0.2 to Xero |
| Value for money | 4.0 | 3.9 | 0.1 to Xero |
| Customer support | 3.9 | 3.8 | 0.1 to Xero |
| Functionality | 4.0 | 3.9 | 0.1 to Xero |
What each average is made of
Two products can share an average and not share a reputation. These bars show the star split behind each score.
| Product | 5 star | 4 star | 3 star | 2 star | 1 star |
|---|---|---|---|---|---|
| Xero | 42% (125 reviews) | 34% (100 reviews) | 15% (45 reviews) | 6% (18 reviews) | 3% (9 reviews) |
| Sage Accounting | 39% (80 reviews) | 34% (70 reviews) | 14% (28 reviews) | 10% (21 reviews) | 3% (7 reviews) |
Feature by feature
Everything either vendor publishes, split into what separates them and what they share.
- Both products
- 28%
- Only Xero
- 1042%
- Only Sage Accounting
- 1250%
24 features listed across both products.
What only one of them does
Xero
10- Best in class bank reconciliation
- CIS calculations and subcontractor reports
- Industry benchmarking
- MTD for Income Tax ready
+ 6 more in the table below
Sage Accounting
12- Assisted VAT submissions
- Bank reconciliation
- Budgets and custom reports
- Carbon footprint tracking
+ 8 more in the table below
Showing 24 of 24 features
| Detail | Xero | Sage Accounting |
|---|---|---|
| Where they differ · 22 | ||
| Best in class bank reconciliation | YesYes | NoNo |
| CIS calculations and subcontractor reports | YesYes | NoNo |
| Industry benchmarking | YesYes | NoNo |
| MTD for Income Tax ready | YesYes | NoNo |
| Multiple currencies | YesYes | NoNo |
| Payroll with RTI and auto enrolment | YesYes | NoNo |
| Performance dashboards | YesYes | NoNo |
| Smart document capture | YesYes | NoNo |
| Unlimited users on every tier | YesYes | NoNo |
| Very large app marketplace | YesYes | NoNo |
| Assisted VAT submissions | NoNo | YesYes |
| Bank reconciliation | NoNo | YesYes |
| Budgets and custom reports | NoNo | YesYes |
| Carbon footprint tracking | NoNo | YesYes |
| CIS management and submission | NoNo | YesYes |
| Multi currency banking | NoNo | YesYes |
| Pension auto enrolment | NoNo | YesYes |
| Quotes and estimates | NoNo | YesYes |
| Receipt capture | NoNo | YesYes |
| Sage Copilot AI assistant | NoNo | YesYes |
| Stock and inventory management | NoNo | YesYes |
| Unlimited sales invoices | NoNo | YesYes |
| Where they match · 2 | ||
| Cash flow forecasting | YesYes | YesYes |
| Making Tax Digital for VAT | YesYes | YesYes |
A dash means the vendor has not published a feature list — which is not the same as the feature being unavailable.
How they handle UK obligations
Checked against the vendor's own documentation or HMRC's published list. A dash means we have not verified it — never that it is missing.
| Detail | Xero | Sage Accounting |
|---|---|---|
| Verified against vendor documentation | ||
| HMRC-recognised for MTD for VAT | YesYes | YesYes |
| HMRC-recognised for MTD for ITSA | YesYes | Not listedNot listed |
| Making Tax Digital ready | YesYes | YesYes |
| RTI-compliant payroll | YesYes | YesYes |
| Pension auto-enrolment | YesYes | YesYes |
| CIS support | YesYes | YesYes |
| Open Banking bank feeds | YesYes | YesYes |
| UK-based support | UK support team | Telephone support from Sage UK |
What each tier costs
Both line-ups on one ladder, so the middle tier on one side sits next to the middle tier on the other.
Xero
Sage Accounting
Ignite
£16/moLower
- Send quotes and 20 invoices
- Enter 10 bills
- Submit VAT returns to HMRC
Start
£20/mo
- 1 user
- Payroll for 1 employee
- Sage Copilot included
Grow
£37/moLower
- Unlimited invoices and quotes
- Automate bill entry
- Payroll for 1 person
Standard
£43/mo
- 3 users
- Payroll for 1 employee
- 30 receipt captures included
Comprehensive
£50/moLower
- Payroll for 5 people
- 90 day cash flow forecast
- Expenses for 5 users
Plus
£59/mo
- Unlimited users
- Payroll for 5 employees
- 100 receipt captures included
Rungs are matched by position in each vendor’s own line-up, not by what the tiers include — an entry plan on one side may cover more than the other. Prices exclude VAT unless stated, and per-seat plans are quoted per seat. Always confirm on the vendor’s own site.
Which should you choose?
Two answers, because there are two right ones depending on what you need.
Choose Xero if
- It costs less to get started — £16/mo against £20/mo.
- Reviewers score it higher on ease of use — 4.0 against 3.8.
- It lists 10 features Sage Accounting does not, including best in class bank reconciliation.
- It covers more of the UK obligations we check — 7 of them against 6.
Choose Sage Accounting if
- It lists 12 features Xero does not, including assisted vat submissions.
For a UK small business that pays staff, Sage Accounting often wins on total cost because payroll is bundled into every plan, whereas Xero charges for it from a certain tier. Xero counters with faster bank reconciliation, unlimited users and a larger app marketplace. Choose Sage if payroll matters most, Xero if daily ease of use and integrations do.
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