Sage vs QuickBooks – Comparing Accounting Management Platforms

QuickBooks, from Intuit, and Sage solutions are stable options for any business when it comes to business and accounting management. They both offer key accounting features for small to medium-sized businesses. However, there are key differences that set them apart. Depending on your business needs and your plans for the future, either choice could lead to easy accounting or trouble. Which platform—QuickBooks or Sage—is the right fit for your business? Which will provide the support and functionality that you need?

Although we can’t tell you whether QuickBooks or Sage will be better for your business, we can explain the similarities and differences between them in an easily digestible format. That will make it easier for you to select the right business software solution. (If you’re asking yourself the question, “are QuickBooks and Sage the same?”, you’re in the right place. That answer is no, and we’ll cover the reasons why down below.)

In this QuickBooks vs. Sage guide, we’ll cover:

• What they are

• The similarities and differences between QuickBooks and Sage

• The pros and cons of each business software solution

• What types of businesses and industries use QuickBooks or Sage

For easy navigation, click the links below to jump to

• Pros and Cons

• Comparison Chart

• Q&A

Now, let’s dive in and explore two of the most popular types of accounting software for small businesses.

What is QuickBooks?

Intuit QuickBooks is a popular form of small business accounting software. For more than 20 years, it’s been the go-to classic choice for businesses looking for financial management software to help them balance their books and organize their records.

But how does QuickBooks actually work? It’s a single comprehensive system for financial records, reports, invoices, payroll, and more. It makes it easy for you and your staff to manage payroll, expense tracking, and other financial aspects of your business. QuickBooks is an ideal accounting software program for small- to -mid-sized businesses. It helps businesses run more efficiently and better manage their cash flow.

QuickBooks Online Simple Start offers numerous advantages to companies, so it’s easy to tell why it’s so popular. The precise features and benefits of using QuickBooks will depend on which version you use. However, all versions offer some universal functionality, including financial reporting, money management, billing and invoices features, and more.

What is a Sage System?

Sage software is an accounting and business management solution. Technically, Sage isn’t accounting software. It’s enterprise resource planning (ERP) software. What is an ERP system, you ask? ERPs are basically a backend system that help you manage your whole business. ERPs improve communication across your business, streamline operations, and improve project profitability. They also include accounting software and functionality. Generally, all of Sage’s products are ideal for creating financial reports, record keeping, and overall business management.

Sage offers many different types of popular accounting software and business management software, ranging from Sage 50 for small business looking for accounting software to Sage X3, an enterprise management solution used by large companies. Different Sage products vary widely in functionality. Depending on which Sage product your business chooses, you can use Sage to do almost anything—from tracking your manufacturing supply chain to managing your most complicated financials systems and data. It extends far beyond accounting and provides additional functionality including tracking inventory and storing customer data.

Similarities and Differences Between QuickBooks and Sage

Similarities

Both QuickBooks and Sage Accounting provide affordable entry-level accounting solutions for small businesses. Sage 50cloud, formerly known as Peachtree, is the Sage product most comparable to QuickBooks. It’s most comparable in both functionality and price, with Sage 50cloud starting at just under $500 per year. Don’t be fooled by the name—Sage 50 is not inherently cloud-based. Most Sage ERP products aren’t inherently cloud-based, like with QuickBooks. However, both Sage and QuickBooks products can be run from the cloud in a hosted environment.

Users of both Sage and QuickBooks can also enjoy a large ecosystem of third-party software providers who offer enhancements including AP Automation, Expense Management, Bank Reconciliation, and Payments. Both platforms can accept payments, track bank statements, and offer mileage tracking tools. You can also send invoices from both QuickBooks and Sage.

Differences

Of course, there are also significant differences between QuickBooks and Sage Accounting. As mentioned earlier, QuickBooks is accounting software while Sage is ERP software. That difference may sound small, but it can make a huge difference for your business. Apart from Sage 50cloud, many other Sage products aren’t really comparable to QuickBooks because they offer broad functionality beyond the accounting function. It’s important to note that they also support accounting and finance functionality as well.

QuickBooks users often have a bookkeeper, while companies that use Sage 100cloud and above usually have a Controller or Chief Financial Officer (CFO). Sage has a steep learning curve, mostly due to its more advanced functionality and increased flexibility when compared to QuickBooks.

Another difference is that Sage offers business management software tailored to certain industries or types of businesses, like Manufacturing, Wholesale Distribution, and more. QuickBooks does not offer this type of industry-specific accounting software.

Sage vs. QuickBooks

Shared Benefits and Features

QuickBooks reports having at least 29 million businesses using their software, while Sage has 6 million customers worldwide. They share some common ground regarding features and functionality, but most companies find that only one option does everything that they need.

Both companies have a lot to offer straight away. Both are capable of most functions that businesses need for basic processes.

Both companies offer or have available:

• Mobile apps for iPhone and Android devices

• Access to manage accounts securely online

• Support through cloud servers and information storage in the cloud

• Access to add multiple banking or credit card accounts

• Job costing capabilities

There are a few aspects which severely impact businesses, including:

• Scalability

• Support

• Connectivity

Together these three facets of business management software can foster or hinder company growth. Look through each carefully as you decide whether your company needs Sage or QuickBooks.

Sage vs. QuickBooks on Scalability and Growth

Looking at QuickBooks first, there isn’t room for scalability or growth. You can opt to move up in plans, but so far as inventory storage, or handling operations there isn’t much room for improvement.

QuickBooks clearly caters to small businesses that intend to stay small. For many people, that works out well. However, if your company plans include a fair amount of growth, you’ll find that you will eventually outgrow QuickBooks.

The most advanced version does allow up to 25 users, which is sufficient for an accounting department of a medium-sized business. Other features, such as the smart reporting and custom fields, can play a role for growing businesses if the users understand how to utilize them.

Sage, on the other hand, works with a different structure. They offer many different products which cater to specific needs. Although the products differ based on business-size, they’re not necessarily “tiers.”  Each option can easily upgrade to a larger or smaller Sage product which makes scaling accessible with little support necessary. It allows for unlimited users at the same time with no effect on system performance.

The most comparable version of Sage compared to QuickBooks is Sage 50Cloud. This system is for small businesses. Sage 50Cloud purely provides basic accounting needs similar to the “QuickBooks Essentials” plan. However, Sage is a gamechanger when you look at the plugin and extension possibilities.

Growth and scalability are something that businesses owners often start planning early into their company’s life. If you want to scale up, consider starting with Sage to avoid a bit of struggle in switching from one software to another down the road.

Sage vs QuickBooks on Support

Support is something that people often forget they need until something goes wrong. When deciding between QuickBooks and Sage, consider the two very different approaches to support that they take.

QuickBooks has a very standard approach to support where you call or send an email then wait for a response.

Sage, because of its involved community, has a different take on support. Sage makes it easy to navigate through their site and, essentially, help yourself.

There are forums, communities, and certified Sage Partners who help Sage customers as well. It’s ultimately something that fits people who regularly need help and don’t want to wait on hold.

When it comes to support, it comes down to preference. If you’re a DIY type of person, then you will probably enjoy becoming part of the Sage community. Whereas if you want someone to tell you how to fix the problem, QuickBooks has a more traditional support system.

Comparison of Plug-ins and Extensions

Plugins, add-ons, extensions, and more are changing what companies expect of software solutions. Typically, customers want something that can perform all the basic needs out of the box and then go above-and-beyond with optional add-ons.

Sage takes the cake when it comes to add-ons and plugins. It has impressive levels of connectivity. Unfortunately, it takes a substantial amount of know-how to get these aspects up and running. If you do choose Sage, your best bet is to work with a Sage certified partner to set up your Sage connections. Connect Sage with Magento, a CRM, and more.

QuickBooks, however, took a different approach to connectivity and instead, focused on compatibility. Where Sage has made their software open for other developers to create tools or software solutions which can connect with Sage, QuickBooks has built a suite.

Similar to the Microsoft suite, QuickBooks created solutions that would work in tandem with and seamlessly with QuickBooks accounting software. You can use QuickBooks Payroll and even sync the QuickBooks system with ADP, which acquired Intuit years ago.

Additional Features          

There are some aspects of both software that raise some questions or should grab your attention. Additional features such as payment processing, fee structure, and usage are things that can be crucial for business owners.

Unlimited Usage

Briefly mentioned in the scalability section, QuickBooks allows a different number of users for each tier. Essentially, the more you pay monthly, the more users can interact with the system. Sage doesn’t directly limit users, although you may restrict users within your company for security. Both allow for the unlimited creation of invoices, though, which means that regardless of the number of people using the software, your invoice volume won’t be a problem.

Free Trials and Pricing Plans

Pricing is a big deal for any business. Sage operates on an annual charge, and for many, that’s a big commitment. If you plan on being in business next year, it’s worth it. Some Sage software options implement recurring, monthly fees, although that’s more for administrative support. QuickBooks, on the other hand, requires a monthly subscription.

With both, the amount you pay varies, there isn’t a flat rate for either option, it depends on what you want. QuickBooks has its pricing tiers which change the price by features. They also run an ongoing sign-up promotion where you get a 50% discount for a certain length of time. Both offer free trials, although QuickBooks’ free trial automatically charges you the day after the trial ends. Sage’s free trial gives full access to Sage and gives you enough freedom to get a sense of whether the features are essential to you or not.

Sage vs. QuickBooks – Pros and Cons

QuickBooks Pros and Cons

All business management or accounting software has pros and cons, and QuickBooks is no exception. According to a survey of QuickBooks users, these are the top advantages and disadvantages of this type of accounting software.

QuickBooks Pros

1. It’s efficient.

2. It’s easy-to-use with an intuitive interface.

3. It’s flexible with more third-party applications, so if QuickBooks doesn’t natively have the functionality you need.

4. The QuickBooks dashboard provides quick insights into your data and the state of your business.

5. It offers good accounting options.

6. It’s affordable.

7. It offers many useful features, including money management and financial reporting features.

8. It easily links to banks and credit cards.

9. It offers a full suite of bookkeeping tools, including tools to manage purchases, sales, receipts, and payments.

10. It offers cloud support options.

QuickBooks Cons

 

1. The system sometimes crashes, resulting in lost data.

2. It cannot produce reports outside of the accounting function.

3. It offers limited customization and personalization options, particularly when it comes to the dashboard.

4. It doesn’t offer industry-specific features and may not be ideal for businesses that require functionality including barcode scanning, eCommerce, and lot tracking.

5. QuickBooks imposes file size limits on users. Larger files can also take longer to load.

6. There are only a limited number of users allowed.

7. As companies grow, their accounting and finance staff may spend more and more time consolidating multiple instances of QuickBooks.

8. QuickBooks offers limited scalability, meaning that after your business grows beyond a certain point, QuickBooks will struggle to handle additional growth.

QuickBooks – The Final Grade

 

If your business is considering leasing or buying QuickBooks, you can rest assured knowing that you have chosen a powerful accounting solution perfect for the needs of many small businesses just like yours. However, it comes with disadvantages, too. QuickBooks doesn’t offer robust inventory management and has limited customization options. It also lacks project management capabilities and places limits on file size that could hinder growth.

Sage Pros and Cons

 

As a reminder, Sage products offer functionality that goes far beyond what QuickBooks, or any other form of accounting software, offers. For the purposes of this comparison, though, we’ll focus mainly on accounting functionality.

Sage Pros

 

1. Sage offers functionality beyond accounting, including HR and inventory and stock management.

2. Sage makes the same real-time data visible and accessible to users across your company.

3. It allows businesses to take advantage of cloud-based project management.

4. It makes it easy for multiple users to collaborate on the same project.

5. Employees can easily create personalized invoices and quotes.

6. Sage offers products tailored to meet the needs of specific industries like manufacturers, distributors, and non-profits.

7. Sage excels at creating key financial reports, including reports that pull data from across your business.

8. Sage offers payment processing functionality from PayPal or companies’ built-in online payment processing system.

9. Sage products usually include many different user permission levels, making it easy to restrict what data users can see.

10. It is scalable and can grow with you.

Sage Cons

 

1. Implementation can be costly and time consuming.

2. Sage may not integrate with other types of software or vendors as well as some other forms of accounting software.

Sage – The Final Grade

 

Sage provides advanced functionality that QuickBooks and other forms of accounting software can’t match. It can also handle project management, allowing for easy collaboration between multiple users. While the learning and implementation curve can be higher, companies will be well rewarded with a software solution that scales better than most other accounting software solutions.

QuickBooks vs. Sage by Industry

As previously mentioned, QuickBooks and Sage are often used by different types of businesses. Often, QuickBooks and Sage users differ both by company size and by industry.

What Types of Companies Use QuickBooks?

QuickBooks is a good fit for new and small businesses with its basic inventory management and introductory accounting solutions. That means that QuickBooks may not be the best long-term fit for businesses with advanced inventory management needs or businesses that plan to grow. However, for businesses that don’t fit these categories, it can be an ideal accounting solution.

QuickBooks is often a good fit for businesses in the following industries:

• Legal Services

• Medical Services

• Accounting

• Retail

• Self-Employed Freelancers

• Small- to Mid-Sized Businesses

What Types of Companies Use Sage?

Sage is a better fit for large businesses, businesses that plan to grow, or companies that have robust inventory or project management needs. It’s a better fit for growing businesses since it will grow with your business.

Sage is often a good fit for businesses in the following industries:

• Wholesale Distribution

• Non-Profits

• Manufacturing

• B2B or B2C Online Retailers

• Mid- to Large-Sized Businesses with Large Inventory

Choosing the Best Option for Your Business

Freelance contractors or people with a small team might have a better time with QuickBooks. Additionally, if you are happy operating as a small business and don’t need to connect multiple systems, then QuickBooks may be your best choice.

However, for those looking to grow over the next few years, then it might be wise to start with Sage so that any future transition is painless. Sage also seems to be the top option for those who have multiple software components managing their operations. Finally, if you’re looking to manage your e-commerce carefully, you might consider pairing Sage with Magento.

There are a variety of options, and each has its benefits and downfalls. For more information about Sage, or software solutions for your company, reach out to CertiPro. At CertiPro Solutions, we help business owners and managers take full advantage of their technology.

QuickBooks vs. Sage 100 2020: Features

 

Still unsure about whether Sage or QuickBooks has the features you need? No problem! That’s why we’ve compiled this handy comparison chart so that you can tell at a glance what the differences are.

Sage 100 2020 has several benefits that stand it above Sage PFW ERP. It can be broken down into three modules, each with their own specialized features.

Q&A – Which platform is right for my business, QuickBooks or Sage?

 

We’ve compiled a quick list of questions that could be helpful in picking whether QuickBooks or Sage provides the best fit for your business.

Q&A: How to Decide If QuickBooks or Sage is Right for My Business

To recap, Sage provides ERP and accounting software. It offers typical finance and accounting software functionality, in addition to project management, inventory management, and more. QuickBooks is easier to use, but it doesn’t offer as much functionality. QuickBooks is basically a bookkeeping program that also syncs with your bank account. Both programs are useful for business, so how you decide between them should be based on what your business needs.

When deciding between QuickBooks and Sage, there are multiple things to consider. We recommend that you answer the following questions as you make a decision between the two:

Q: Will more than one employee regularly collaborate on projects?

A: If that answer is yes, Sage is probably a better fit for your business.

Q: Does your business carry a large inventory, and will it need to track multiple types of products?

A: If that answer is yes, Sage is probably a better fit for your business since it can handle a robust inventory.

Q: Will your business want to include your business logo on invoices and estimates?

 

A: If that answer yes, then Sage is probably a better fit for your business since it offers more customization options.

Q: Does your business need a program that is easy to learn?

A: If that answer is yes, then QuickBooks is probably a better fit for your business since it’s easier to learn.

Q: Is your business small, or does it have a limited growth trajectory?

A: If that answer is yes, then QuickBooks is probably a better fit for your business, although Sage 50 may work as well.

In conclusion, both QuickBooks and Sage have useful features and might be a wonderful fit for your business needs. There is no single one “right” solution when it comes to choosing business management software. The best software for you depends on the needs of your business. If your business only requires simply bookkeeping services, then QuickBooks is probably the right choice for you. But if your business has more advanced project management or inventory management needs, Sage usually comes out on top.