Sage Business Cloud Accounting Review: Features and Pricing in 2023
This article is part of a larger series on Accounting Software.
Sage Business Cloud Accounting (or simply Sage Accounting) is cloud-based accounting software that offers solutions for invoicing, expense tracking, and stock management. It lets you create and send invoices, accept and receive payments, and keep an eye on your bookkeeping tasks. Sage Accounting offers two plans that cost $10 and $25 per month. You can try it for free for 30 days with no credit card required.
What We Like
- Fairly inexpensive compared to other accounting software
- Extremely easy to set up
- Supports unlimited transactions
- Good full-featured mobile app
- No built-in payroll
- Can’t create recurring purchase invoices
- Lacks some important advanced features, such as income/expense tracker by class and a client portal
- Doesn’t automatically calculate the cost of goods sold (COGS) when inventory is sold
- Businesses seeking an alternative to QuickBooks: It’s a great choice for business owners looking for an inexpensive yet flexible and easy-to-use accounting alternative to QuickBooks. For other excellent alternatives, check out our review of the best QuickBooks alternatives.
- Businesses that want to do their bookkeeping via a mobile app: Download the Sage Accounting mobile app to create, send, and track invoices and manage your cash flow on the go. If you’re looking into other accounting solutions to manage your finances anytime and anywhere, read our guide to the best mobile accounting apps.
- You need simple accounting: It is very good at invoicing your clients, tracking bills, and classifying expenses. Starting at only $10 per month, it’s significantly better than free software.
- Businesses that have inventory: Sage Accounting doesn’t have strong inventory features to handle inventory costing and tracking. We recommend choosing QuickBooks Online Plus for inventory tracking.
- Construction companies: While it has a built-in project tracker, it doesn’t let you track billable hours and project profitability. If you need a full-featured accounting system for your construction business, see our evaluation of the best construction accounting software.
- Businesses with complex invoicing requirements: There’s no way to track and add hours and expenses to invoices. If you’re looking for a powerful time tracking and invoicing system, we recommend FreshBooks.
Are you looking for something different?
Read our guide to the best small business accounting software for additional recommendations.
Sage Business Cloud Accounting Deciding Factors
Supported Business Types
Small businesses with little or no inventory.
30 days with no credit card required
Requires third-party integration with Gusto
Self-help library, chatbot, live chat, and community page
Sage Business Cloud Accounting Alternatives
Best for: Small businesses with inventory
Best for: Small businesses looking for free accounting software
Best for: Invoicing customers and charging billable hours
Starts at: $30 for one user
Starts: Free for one user
Starts at: $17 for one user
FSB Case Study
We used the case study method to fully understand how Sage Accounting best fits in small business accounting. In our case study, we highlighted 11 key areas in accounting that are essential for small businesses. Here are the results of our evaluation of Sage Accounting as compared to its direct competitors, QuickBooks Online and Zoho Books.
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Sage Accounting Starts at $10 per month, $25 as tested
Zoho Books Starts free, $40 as tested
QuickBooks Online Starts at $30, $85 as tested
Sage Accounting is Sage’s native cloud accounting software, similar to QuickBooks Online and Zoho Books. However, Sage Accounting is behind its competitors in terms of capabilities and functionality, especially in inventory, reporting, and ease of use. Its strongest suit is pricing because it’s only $25 for unlimited users. Although it’s lagging feature-wise, Sage Accounting is more than enough for small businesses that simply need to track invoices, bills, and bank transactions.
If you find Sage Accounting lacking in features, we recommend Zoho Books as an alternative since it’s the next most affordable option. Moreover, we recommend QuickBooks Online for assisted bookkeeping since many bookkeepers and certified public accountants (CPAs) in the US are more acquainted with QuickBooks Online rather than Sage and Zoho Books.
Pricing & Features
Sage Accounting Start
Number of users
Accounts Payable (A/P) Tracking
Quotes & Estimates
Reduce Manual Data Entry With AutoEntry
Buy the Sage Accounting plan and get 70% off for six months. Otherwise, you can get the 30-day free trial with no credit card required.
Sage Business Cloud Accounting Features
Sage Accounting offers a different kind of feel and a better interface than its desktop counterpart, Sage 50cloud. As a purely cloud-based accounting software, we see a lot of potential in Sage Accounting. Let’s go over its features across 11 key areas.
Setting up accounting data and settings is easy, but it takes considerable time. We recommend setting aside a couple of hours for inputting business data like reporting dates, business data retention period, method of accounting, and document settings. However, we don’t see this as a disadvantage because modifying the settings right before entering transactions will make your experience smoother along the way.
Another interesting feature is Sage Accounting’s Analysis Types. This enables you to set up codes for cost centers, departments, and locations. On the flip side, one of the platform’s shortcomings is that you can’t import a chart of accounts and beginning balance—and it could take you considerable time to get set up since these will have to be entered manually.
Sage Accounting General Features Video
Accounts Payable (4.10/5)
The interface for Sage Accounting’s A/P module is clean, organized, and simple. It’s also convenient to view unpaid vendor bills in the A/P module. Moreover, you can immediately create new vendors from within the New Vendor Bill screen in case you forgot to set up one before. However, we’ve observed some counterproductive navigational flows in expense payment recording—you can’t record expense payments without creating a bill first.
We’d prefer the option to enter an expense payment directly in cases where no bill is received. For instance, an automatic monthly payment for insurance shouldn’t require a new bill to be entered every time a payment is made. The low overall score of Sage Business Cloud Accounting in this area—as compared to its competitors—is attributable to its ease of use score.
Sage Accounting A/P Features Video
Accounts Receivable (4.30/5)
Invoice customization is something that Sage Accounting got on point. We like that users can choose an invoice template, add two logos—one business logo and one accreditation logo, if any—choose a theme color, modify the font style, and set invoice line items.
Just like the A/P module, the accounts receivable (A/R) module shares the same interface layout by utilizing a tabular presentation. You can also create new customers within the invoice creation screen, record credit memos, and view customer invoices without generating a report.
A counterproductive issue we found in the A/R module is that you can’t track unbilled expenses by client and automatically add them to invoices. You’ll need to track expenses by client elsewhere and then manually add them to an invoice. Without this feature, there’s a high chance of forgetting to bill customers for expenses incurred as part of the product or service provided.
Sage Accounting A/R Features Video
Banking & Cash Management (4.20/5)
Sage Accounting has a clean interface that’s easy to understand, and it’s our best bank reconciliation software for automation. Everything is smooth in terms of setting up your bank accounts. You can connect accounts, import bank transactions, and record bank debits and credits not yet recorded in the books, such as bank charges, interest earned, and interest paid. However, the bank reconciliation “report” doesn’t list outstanding transactions, which limits the report’s usefulness.
Sage Accounting Banking & Cash Management Features Video
Project Accounting (3.80/5)
Sage Accounting lets you create quotes and estimates easily, and you can assign costs and inventory to projects when creating bills and invoices. However, It doesn’t allow you to assign estimates to projects. A major disadvantage of not being able to do so is you can’t compare budget-to-actual results. For project-based businesses, a comparison report of budgeted vs actual costs is vital for evaluating performance. If this is important to your business, consider Zoho Books.
Sage Accounting Project Accounting Features Video
Sage Accounting’s inventory accounting lacks the important features we’d like to see. Even though you can create and add inventory items in invoices, the program doesn’t calculate and record COGS automatically after creating an invoice for the sale of inventory.
We find that very odd since it does calculate the average cost per unit for your inventory but then doesn’t use that information to make the necessary entry when the inventory is sold. Because of this, we can’t recommend Sage Accounting if you’re a merchandising business. You’d be better off choosing QuickBooks Online because of its exemplary inventory features.
The inventory features are evaluated along with A/R and A/P in the prior videos.
Reports in Sage Business Cloud Accounting don’t include some important reports for small business use.
Comparative Balance Sheet
✓ (But not comparative)
Comparative Profit and Loss (P&L) Statement
✓ (But not comparative)
Statement of Cash Flows
Income/Loss by Month
Income/Loss by Customer
Income/Loss by Class
Income/Loss by Location
Income/Loss by Project
Transaction List by Customer
Expenses by Vendor
Ease of Use (2.70/5)
Contacting support can only be done through chatbots, live chat person, email, and by checking self-help information. There’s no way to call a representative by phone or ask them to call you. Hence, the fastest way to get answers is through Sage Accounting’s resource center. However, on review websites, many users noted that Sage Accounting’s onboarding process is excellent and helpful.
Mobile App (3.00/5)
The mobile app functionality of Sage Accounting is on a par with QuickBooks Online. You can send invoices, receive payments, enter bills, capture receipts, and enter bill payments. If you find the app functionality limited, you should consider Zoho Books. Aside from the functions mentioned above, Zoho Books’ app can also assign expenses to projects or customers, categorize bank feed transactions, record time worked, assign billable time to customers or projects, and view reports.
Sage Business Cloud Accounting User Reviews (4.60/5)
Sage Accounting received an excellent rating from Trustpilot, with 85% of the reviews being five-star ratings. Most reviewers claim that Sage has been helpful in onboarding new clients and setting up their Sage profile. Some users also praise Sage for giving them excellent customer assistance for problems.
- Trustpilot: 4.6 out of 5 based on more than 16,000 reviews
- Software Advice: 4.07 out of 5 based on more than 230 reviews
- G2.com: 4.2 out of 5 based on more than 50 reviews
Assisted Bookkeeping Options
Sage certifies accountants as Sage Accounting Advisors. While there are Sage Advisors in the US, they generally support Sage 50cloud instead of Sage Accounting—but since there are similarities in the programs, you might find an advisor willing to work with you. However, if an expert network of advisors is important to you, QuickBooks Online has an enormous network of advisors.
Sage Accounting can integrate with 29 third-party applications through the Sage US Marketplace. You can connect to these apps once you get your login credentials and subscription. Here are some of the well-known apps that can integrate with Sage Accounting:
- Zapier for expanded integration opportunities
- Gusto for payroll processing and human resources (HR) tools
- Stripe Invoice Payments for accepting payments
- Epos Now for point-of-sale (POS) systems
- Combidesk for Shopify to connect your Sage account with Shopify
Frequently Asked Questions
Is Sage Business Cloud the same as Sage One?
Yes. All of Sage’s accounting and finance products for small and medium businesses are formerly known as Sage One. The company changed its name to Sage Business Cloud, which includes Sage Accounting, Sage 50cloud, and Sage Intacct.
Is Sage Accounting easy to use?
Sage Accounting, the cloud-based product of Sage Business Cloud, is easier than its counterparts. We tested the software, and first-time users can get acquainted easily.
Sage Business Cloud Accounting isn’t as powerful as other accounting systems, but it offers a selection of helpful features to tackle basic accounting. For small and growing businesses, its affordability, simplicity, and ease of use make it worth checking out. There are a few areas where it could improve, but it’s gradually evolving with the occasional addition of features. If you’re a small business owner needing a straightforward accounting program, Sage Accounting is for you.