This article is part of a larger series on Accounting Software.
Sage Business Cloud Accounting, formerly known as Sage One, is cloud-based accounting software that offers solutions for invoicing, expense tracking, stock management, and more. It lets you create and send invoices, accept and receive payments, and keep an eye on your bookkeeping tasks, all within a single platform. Sage Business Cloud Accounting offers two plans that cost $10 and $25 per month.
What We Recommend Sage Business Cloud Accounting For
We recommend Sage Business Cloud Accounting for small businesses that need straightforward yet powerful solutions to their invoicing, expense management, and accrual accounting chores. It offers two accounting packages that help you create sales invoices, generate quotes and estimates, view cash flow statements, and more.
You can sign up for a free 30-day trial and explore its features before deciding to purchase the product.
Who Sage Business Cloud Accounting Is Best For
- Businesses seeking an alternative to QuickBooks: Sage Business Cloud is a great choice for business owners looking for an inexpensive yet flexible and easy-to-use accounting alternative to QuickBooks. For other good alternatives, check out our review of the best QuickBooks alternatives.
- Businesses that want to do their bookkeeping in a mobile app: Download the Sage Business Cloud 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 review of the best mobile accounting apps.
- Simple and straightforward accounting: Sage Business Cloud Accounting is very good at invoicing your clients, tracking bills, and classifying expenses. Starting at only $10 per month, it’s significantly better than the free software that’s available.
Sage Business Cloud Accounting Is Not Right For
- Users requiring integrated payroll: Sage Business Cloud Accounting doesn’t offer integrated payroll, so you’ll have to input your payroll summary information as a journal entry after each payday. QuickBooks Online is a great choice for integrated payroll.
- Construction companies: While Sage Business Cloud Accounting has a built-in project tracker, it doesn’t let you track billable hours and monitor project profitability. If you need a full-featured accounting system for your construction business, read our reviews 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.
- Companies with inventory: While Sage Business Cloud Accounting tracks the quantity and cost of your inventory, it doesn’t calculate and record the cost of goods sold (COGS) automatically when you record a sale. This is a major shortcoming, as recording the proper COGS is one of the primary functions of inventory accounting. Therefore, if you purchase and sell inventory, we recommend choosing Zoho Books for its exemplary inventory features.
Are you looking for something different? Read our guide to the best small business accounting software and check out our top picks.
Sage Business Cloud Accounting Overview
|Fairly inexpensive compared to other accounting software||No integrated payroll|
|Extremely easy to set up||Can’t create recurring purchase invoices|
|Supports unlimited transactions||Lacks other important advanced features, such as income/expense tracker by class and a client portal|
|Good full-featured mobile app||Doesn’t automatically calculate COGS when inventory is sold|
Sage Business Cloud Accounting Case Study
We used the case study method to fully understand how Sage Business Cloud 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 Business Cloud Accounting as compared to its direct competitors, QuickBooks Online and Zoho Books.
Sage Business Cloud Accounting scored fairly well in all areas except fixed assets and customer service. However, we found that Sage Business Cloud Accounting can’t keep up in areas where its direct competitors excel. But, given its low price, we still see potential in Sage Business Cloud Accounting for small business accounting. We’ll go over the details in the features section.
Sage Business Cloud Accounting Pricing
Pricing & Features
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 Business Cloud Accounting offers a different kind of feel and a better interface than its counterpart, Sage 50cloud. As a purely cloud-based accounting software, we see a lot of potential in Sage Business Cloud 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 in Sage Business Cloud Accounting is its Analysis Types features. This feature enables you to set up codes for cost centers, departments, and locations. A shortcoming of Sage Business Cloud Accounting is that you can’t import a chart of accounts or beginning balance. It could take you considerable time to get set up since these will have to be entered by hand.
Sage Business Cloud Accounting General Features Video
The interface for Sage Business Cloud Accounting’s A/P module is clean, organized, and simple, unlike Sage 50cloud’s. 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 forget to set up one before.
However, we’ve observed some counterproductive navigational flows in expense payment recording. We found that 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 Business Cloud Accounting Accounts Payable Video
Invoice customization is something that Sage Business Cloud 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. The software also allows the recording of credit memos and viewing of customer invoices without generating a report.
A counterproductive issue we found in the A/R module is that you have to create a new invoice for unbilled expenses. We’d prefer having a feature that converts unbilled expenses into invoices easily for customer billing. 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 Business Cloud Accounting Accounts Receivable Video
Sage Business Cloud Accounting has a clean interface that’s easy to understand, and it’s our pick for the best bank reconciliation software for automation. Everything is smooth in terms of setting up your bank accounts. The software allows you to connect accounts and import bank transactions. You can also record bank debits and credits not yet recorded in the books easily like bank charges, interest earned, or interest paid. However, the bank reconciliation “report” doesn’t list outstanding transactions, which limits the report’s usefulness.
Sage Business Cloud Accounting Banking and Cash Management Features
Sage Business Cloud Accounting lacks fixed asset accounting features, such as computing and recording depreciation. You can only classify assets as Fixed Assets for balance sheet presentation. Since there’s no in-depth feature to highlight, there will be no video for this area.
Creating quotes and estimates in Sage Business Cloud Accounting is easy, but it doesn’t let you assign estimates to projects. You can still assign costs and inventory to projects when creating bills and invoices. However, a major disadvantage of not assigning estimates to projects is the inability to compare budget-to-actual results. For project-based businesses, a comparison report of budgeted costs and actual costs is vital for evaluating performance. If this is important to your business, consider Zoho Books.
Sage Business Cloud Accounting Project Accounting Features
For sales and income tax, Sage Business Cloud Accounting is on par with its direct competitors. You can create sales tax items and track taxes in liability accounts. You can’t file and pay sales tax liability within Sage, but this isn’t a big deal since Sage Business Cloud Accounting’s direct competitors share a similar limitation. The discussion of tax items is already included in A/R and A/P, so there’s no separate video for this one.
Inventory accounting in Sage Business Cloud Accounting misses on the important features we’d like to see in inventory accounting. Even though you can create and add inventory items in invoices, the program doesn’t calculate automatically and enter COGS after creating an invoice for the sale of inventory. We find that very odd since the system 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 Business Cloud Accounting if you’re a merchandising business. You’d be better off choosing QuickBooks Online or Zoho Books because of their 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 important reports for small business use. Here are the reports available and not available in the software:
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
Contacting support can only be done through chatbots, live chat person, email, or by checking self-help information. In Sage Business Cloud Accounting, there’s no way to call them by phone or ask them to call you.
The mobile app functionality of Sage Business Cloud Accounting is on 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 app functions mentioned above, the 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.
Assisted Bookkeeping Options
Sage certifies accountants as Sage Accounting Advisors. While there are Sage Advisors in the United States, they generally support Sage 50cloud versus Sage Business Cloud Accounting. However, there are similarities in the programs, and you might find an advisor willing to work with you. But if an expert network of advisors is important to you, QuickBooks Online has an enormous network of advisors.
Sage Business Cloud 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 Business Cloud 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
age Business Cloud Accounting Alternatives
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 who needs a straightforward accounting program, Sage Business Cloud Accounting is for you.