The Sage alternative that makes accounting feel easy
Comparing Sage with other accounting software? Cut back on admin and send VAT returns to HMRC with confidence. Invite your whole team at no extra cost, all in the cloud.
Give your week back to your business
Here’s how Xero lightens your bookkeeping, connects your tools, and smooths out your first pay run.
Feel at home from day one
Xero is clean and easy to find your way around, even if you don't have an accounting background.
Connect the apps you rely on
The Xero App Store offers hundreds of third-party integrations, so your favourite tools can share data with your books.
Take your payroll along
Switch to Xero Payroll from Sage in 6 simple steps and keep your pay runs on track.
| Xero | Sage Accounting | |
|---|---|---|
| Subscription plan | Ignite Grow Comprehensive Ultimate | Accounting Start Accounting Standard Accounting Plus |
| Users | Unlimited users. | △ Accounting Start & Accounting Standard have limits on users. |
| Bank connections/bank feeds | ||
| Bank reconciliation | ||
| Auto bank reconcile | Supported in Grow, Comprehensive & Ultimate subscriptions via JAX. | Supported in Standard and Plus subscriptions via Sage Copilot |
| MTD for Income Tax ready | ||
| Invoicing & quotes | Ignite limits to 20 invoices. All other subscriptions offer unlimited invoicing. | Accounting Start does not support quotes. All other subscriptions offer unlimited invoicing and quotes. |
| Enter bills | Ignite limits to 10 bills. All other subscriptions offer unlimited bills. | Accounting Start does not support bills. All other subscriptions offer unlimited bills. |
| Pay bills (in GBP) | Accounting Start does not support bill payments. All other subscriptions offer bill payments. | |
| Online payments | ||
| Cloud based | ||
| Works on mobile | ||
| Submit VAT returns to HMRC | ||
| Smart Document Capture | Accounting Start does not support data capture. All other subscriptions offer data capture | |
| Basic inventory & tracking | Supported on Accounting Plus subscription only. | |
| Manage fixed assets | ||
| Foreign currency | Supported on Comprehensive & Ultimate subscriptions only. | Supported on Accounting Plus subscription only. |
| Payroll offered | ||
| Expense and mileage tracking | Supported on all plans except for Ignite. | △ Limited (does not support mileage). |
| Project tracking & profitability | Supported on Ultimate subscription only. | |
| Automate CIS calculations and reports | Supported on Accounting Standard & Accounting Plus subscriptions only. | |
| Submit CIS returns offered | Supported on Accounting Standard & Accounting Plus subscriptions only. | |
| Advanced business intelligence & financial insights | All analytics features powered by Syft are exclusive to the Comprehensive & Ultimate Subscriptions. Some are available in the Ignite & Grow subscriptions. | All features are exclusive to the Plus subscription; some are available on the Standard subscription. |
| AI Agent (automate tasks and surface real-time insights) | JAX | Sage Copilot |
Note: (✓) indicates a strong capability, (✕) indicates a significant limitation, and (△) indicates a partial or conditional capability
Work from anywhere, on any device
Your books live in the cloud, so you can open them on your laptop or in the Xero Accounting app. Bank transactions flow in automatically, and you and your accountant can work in the same books at the same time. Check in on your figures whenever it suits you!
Discover Xero's online accounting software
Grow at your own pace
Taking on staff or trading overseas? You can invite unlimited general users at no extra cost, and higher plans include payroll and multi-currency, plus project tracking on the Ultimate plan.
Compare Xero plans and what each one includes
Confidently handle your tax with HMRC
Send quarterly updates for Making Tax Digital for Income Tax to HMRC straight from Xero. You can submit VAT returns from Xero too, and it handles Construction Industry Scheme (CIS) calculations and reports.
Get ready for Making Tax Digital with Xero
Stay on top of your numbers automatically
When month end comes round, JAX, Xero’s AI financial superagent, reconciles bank transactions automatically where it’s highly confident. You keep the final say. Cash flow forecasts help you plan, while customisable reports show the figures you care about.
Meet JAX, Xero's AI financial superagent
Bring your Sage data with you
Moving your data and getting to know a new system takes a little planning. Movemybooks offers assisted conversion from Sage and can convert up to two years' worth of files in minutes. Xero experts then help you get comfortable with your new setup.
Switch from Sage
Team up with accountants and bookkeepers
Invite your accountant or bookkeeper into Xero at no extra cost, so you work from the same live numbers. Don't have one? Find a certified advisor near you.
- Work alongside clients in real time in the same Xero organisation, so everyone sees the same live figures
- Invite your accountant or bookkeeper to help you set up and convert, or find one in the Xero advisor directory
Trustpilot
Monya
Trustpilot
Tom W
Trustpilot
Tina T
FAQs on Xero's Sage alternative
For many UK small businesses, yes. Xero is fully cloud-based, includes unlimited general users at no extra cost, and connects with hundreds of third-party integrations through the Xero App Store. The right choice depends on how you work, so the comparison table above is a good place to weigh up both.
For many UK small businesses, yes. Xero is fully cloud-based, includes unlimited general users at no extra cost, and connects with hundreds of third-party integrations through the Xero App Store. The right choice depends on how you work, so the comparison table above is a good place to weigh up both.
It depends on how you like to work. Xero runs fully online, so you can log in from any device with an internet connection. Updates happen automatically, with nothing to install. If you’d like to share your books with your accountant as you go, Xero is a strong fit. Find out what to look for in cloud accounting software.
It depends on how you like to work. Xero runs fully online, so you can log in from any device with an internet connection. Updates happen automatically, with nothing to install. If you’d like to share your books with your accountant as you go, Xero is a strong fit. Find out what to look for in cloud accounting software.
Xero gives you two ways to bring your Sage records across:
- assisted conversion with Movemybooks, which handles the conversion for you
- manual import using Xero's templates for your chart of accounts, contacts, invoices and bills
Work through each step with the Xero Central guide to converting from another system.
Xero gives you two ways to bring your Sage records across:
- assisted conversion with Movemybooks, which handles the conversion for you
- manual import using Xero's templates for your chart of accounts, contacts, invoices and bills
Work through each step with the Xero Central guide to converting from another system.
The timing depends on how much data you're moving and the method you choose. Start by picking a conversion date, which is always the first of a month. Then enter your conversion balances from your trial balance. For extra help, Movemybooks on the Xero App Store offers an assisted conversion service from Sage.
The timing depends on how much data you're moving and the method you choose. Start by picking a conversion date, which is always the first of a month. Then enter your conversion balances from your trial balance. For extra help, Movemybooks on the Xero App Store offers an assisted conversion service from Sage.
It is. Xero supports Making Tax Digital (MTD) for Income Tax (currently in beta, subject to registration and eligibility), so you can:
- send quarterly updates to HMRC from Xero
- submit VAT returns to HMRC from the same software.
Read the GOV.UK guidance on using MTD for Income Tax to check what applies to you.
It is. Xero supports Making Tax Digital (MTD) for Income Tax (currently in beta, subject to registration and eligibility), so you can:
- send quarterly updates to HMRC from Xero
- submit VAT returns to HMRC from the same software.
Read the GOV.UK guidance on using MTD for Income Tax to check what applies to you.
Xero includes unlimited general users at no extra cost. You can invite your accountant or bookkeeper, plus your whole team, to work in the same organisation. Find out how Xero keeps accounting simple.
Xero includes unlimited general users at no extra cost. You can invite your accountant or bookkeeper, plus your whole team, to work in the same organisation. Find out how Xero keeps accounting simple.
You can. Xero Payroll is HMRC-compliant and handles Real Time Information (RTI) reporting for you. It’s included on the Grow, Comprehensive, and Ultimate plans, and you can switch to Xero Payroll from Sage in 6 simple steps. GOV.UK sets out what employers need to do each pay run.
You can. Xero Payroll is HMRC-compliant and handles Real Time Information (RTI) reporting for you. It’s included on the Grow, Comprehensive, and Ultimate plans, and you can switch to Xero Payroll from Sage in 6 simple steps. GOV.UK sets out what employers need to do each pay run.
It can. Unlimited general users come with Xero, so you can add people without adding user fees. As your needs change, higher plans add:
- multi-currency
- project tracking
- advanced analytics
- more payroll features
You can also see how Xero compares with other accounting software.
It can. Unlimited general users come with Xero, so you can add people without adding user fees. As your needs change, higher plans add:
- multi-currency
- project tracking
- advanced analytics
- more payroll features
You can also see how Xero compares with other accounting software.
Yes. The Xero App Store offers hundreds of third-party integrations, so you can connect the tools you already use and find new ones as your business grows. Browse apps that connect with Xero to find the ones that suit your business.
Yes. The Xero App Store offers hundreds of third-party integrations, so you can connect the tools you already use and find new ones as your business grows. Browse apps that connect with Xero to find the ones that suit your business.
Xero helps you through the move with:
- round-the-clock help from Xero experts
- personalised 1:1 set-up assistance to get you up and running
- shared access to your books for your accountant or bookkeeper
- a certified professional near you, found through the Xero advisor directory
Xero helps you through the move with:
- round-the-clock help from Xero experts
- personalised 1:1 set-up assistance to get you up and running
- shared access to your books for your accountant or bookkeeper
- a certified professional near you, found through the Xero advisor directory
Plans for growing businesses
Ignite
for the first 6 months
Then £18 per month
An easy financial foundation - track cash flow with the essentials.
- Send quotes and 20 invoices†
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Enter 10 bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for £0.20 per payment††
- Payroll for £1.50 per person
- 30 day cash flow forecast
- Visualise performance with basic graphs
- Company accounts and tax (optional £120 excl. Vat billed annually)
Grow
for the first 6 months
Then £39 per month
Go beyond the basics - automate tasks and access performance dashboards.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 5 payments
- Payroll for 1 person
- 60 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 1 user
- Company accounts and tax (optional £120 excl. Vat billed annually)
Comprehensive
for the first 6 months
Then £55 per month
Optimise profitability - tailor your insights for greater control.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 10 payments
- Payroll for 5 people
- 90 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 5 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Ultimate
for the first 6 months
Then £70 per month
Future proof your scaling business - with advanced tools and analytics.
- Send invoices and quotes
- Accept online invoice payments^
- MTD for Income Tax ready
- Reconcile transactions
- Smart document capture
- View real-time reports
- Automate bill entry and track bills
- Submit VAT returns to HMRC
- Automate subcontractor CIS calculations and reports
- Make online bill and payroll payments (domestic) for up to 15 payments
- Payroll for 10 people
- 180 day cash flow forecast
- Visualise performance with graphs
- Customise performance dashboards
- Claim expenses and mileage for 10 users
- Use multiple currencies
- Tailored financial health scorecards
- Make online bill payments (International) - Optional add-on
- Track time and costs for projects for 10 users
- Analyse KPIs and ratios
- Benchmark against the industry
- Company accounts and tax (optional £120 excl. Vat billed annually)
- Budget with smart suggestions
Not VAT registered? See plans for simpler business needs.View plans
Get one month free
Purchase any Xero plan, and we will give you the first month free.
Explore useful features to run your business
Xero’s online accounting software is designed to make life easier for small businesses – anywhere, any time.
