Keeping your books in order isn’t optional, it’s essential for running a business. And it’s crucial for fast-growing scale-ups.
But not all accounting SaaS (software as a service) tools are created alike. And the wrong option could make simple, but important tasks overly complicated and likely to have mistakes. So, if you’re ready to invest in better software, your accounting tool may be the best place to start.
In this article, we run an accounting SaaS comparison of the four most popular accounting SaaS tools among Cledara users:
- Xero
- Sage
- Quickbooks
- NetSuite
But first, let’s take a quick look at what we mean by “accounting SaaS” and how these tools make a difference.
Ready? Let’s get started.
What Are Accounting SaaS Tools Really For?
Accounting SaaS (software as a service) tools give finance teams a single platform to monitor financial indicators, produce insights, and generate reports.
With accounting software, finance teams can:
- Calculate taxes
- Automate bookkeeping processes
- Manage customers
- Track financial metrics
- Handle basic invoicing and billing
- Reconcile bank accounts
- Gather financial data from CRMs, payroll automation software, and other platforms
Accounting SaaS tools optimize time and resources by:
- Freeing finance teams from repetitive manual tasks
- Automating financial reporting
- Centralizing financial information
The Impact of Accounting SaaS for CFOs
CFOs sit on the frontline of company growth plans, using financial and operational data for corporate planning, expansion strategy, and fundraising.
According to research conducted by PWC:
- 44% of CFOs say increasing the use of tech to reduce costs is very important to fund in the next 12 months
- 28% of finance departments are already using AI in forecasting
So, accounting software is an essential solution for CFOs and finance teams because it allows them to:
- Drive improved collaboration with accountants, bookkeepers, and colleagues
- Avoid combing through manually compiled reports and spreadsheets
- Get accurate insights to executives, investors, auditors, or tax authorities
- Use real-time information to refine operations, purchasing, and hiring
Plus, it’s fair to say that as your company begins to scale, it also attracts larger customers, investors, and regulators. So it’s important to have a reliable accounting system capable of scaling with you. This is exactly what accounting SaaS tools help CFOs achieve.
Accounting SaaS Tools Comparison: Xero vs Sage vs Quickbooks vs NetSuite
Now that we've discussed what accounting SaaS tools do and why they matter, let’s compare four popular accounting solutions. Our goal, in this section, is to help you pick which one’s best for you.
We’ll cover:
- Xero
- Sage
- Quickbooks
- NetSuite
Before we get started, here’s a broad overview.
Xero Accounting Software
First up is Xero, a cloud-based accounting tool that helps small businesses, accountants, and bookkeepers manage their finances in a simple and efficient way. Xero was launched in 2006 and has since grown to become one of the most popular accounting software solutions globally, with over two million subscribers in more than 180 countries.
With Xero, users can:
- Operate internationally by transacting in 160 currencies, get instant currency conversions, view rate changes, report in preferred currencies, and analyze how currency markets impact cash flow
- Get a centralized view of their finances, track cash flow, and monitor financial health
- Match bank transactions, reconcile data with bank feeds, and store documents online
- Create on-brand invoices and send them to customers via email or print payslips
- Track invoices’ payment status and send payment reminders
- Pay bills and file tax returns
- Generate financial reports, including profit and loss, balance sheet, and cash flow statements
- See the big picture of a contact’s transaction history
Xero Pros
- 800+ software integrations, including market-leading tools such as Stripe, PayPal, Vend, Shopify, and GSuite
- Convenient cloud-based format
- Clean, easy-to-use interface
- Offers iOS and Android mobile apps
- Includes a detail-rich dashboard, which displays all relevant financial information at a glance
- Can support unlimited users at no additional cost
- High security standards: data is securely stored on the cloud, and it’s protected by data encryption, 2FA (two-factor authentication), 24-hour monitoring, daily backups, and security audits
Xero Cons
- Some reviews suggest that Xero may not suit larger businesses and that it has limited FP&A (financial planning and analysis) capabilities
- Users must pay extra to claim expenses, track projects, and access analytics
- The basic plan is limited: companies seeking to scale with Xero may find it insufficient
Xero Plans and Pricing
Xero offers a range of plans designed for businesses of different sizes, at different growth stages.
Xero’s plans are divided into:
- Starter, which starts at $29/month and is ideal for sole traders, the self-employed, and new businesses.
- Standard, starting at $46/month, which is great for growing small businesses and startups.
Premium, starting at $69/month, which is perfect for established businesses and scale-ups.
Sage Accounting Software
Sage Accounting is a cloud-based software accounting tool designed to streamline financial business processes. It also supports bank feed integrations, covering hundreds of banks. Sage can help eliminate the need for manual data entry, as transactions are automatically imported into your Sage dashboard.
Sage helps finance teams to:
- Create, process, and track invoices
- Monitor their cash flow
- Automate repetitive tasks
- Record revenue and expenses
Sage Pros
- Advanced features, such as solid inventory management and cash flow forecasting
- Unlimited transaction and account charts
- Telephone customer support for North America
- Over 165 types of reports, depending on your plan
Sage Cons
- It’s not as advanced or user-friendly as some alternatives
- Very basic expense tracking. For instance, you can’t categorize expenses automatically.
Sage Plans and Pricing
Sage offers three plans:
- Essentials (free), for companies wanting to automate pricing, client engagement, client management, and data entry
- Standard, $45/month, for businesses that require increased allowances and extra subscriptions to drive workflow efficiency
- Premium, $120/month, for scaling businesses to charge up profitability and growth
Quickbooks Accounting Software
Intuit Quickbooks compiles all your business's financial information into easy-to-understand, manageable reports. A US-based market leader, Quickbooks is often referred to as the ideal solution for small-to-medium sized businesses. This is mostly thanks to its entry-level support and user-friendly features.
With Quickbooks, you can:
- Monitor income, expenditure, and profitability
- Track your inventory in real time
- Sort income expenses into tax categories
- Create and send customized invoices
- Control costs and get instant insights
- Run and export comprehensive reports
- Capture and organize receipts
- Access accounting reports on-the-go through the Quickbooks mobile app
- Accept credit cards anywhere
- Calculate taxes automatically
- Integrate with over 750 third-party solutions, such as Paypal, Square, and Shopify
Quickbooks Pros
- Simple and intuitive interface with low learning curve
- A robust feature set, even on the entry plan
- Numerous tax forms, including W-2s, W-3s, and 1099s
- A wide variety of third-party app integrations
- Better customer support than competitors, including Monday–Sunday phone support and live chat assistance in every plan
Quickbooks Cons
- Each plan supports only a limited number of users
- A lack of industry-specific reports
- Users with multiple businesses must pay for separate subscriptions
- Lack of payroll automation features
Quickbooks Plans and Pricing
Quickbooks offers four plans:
- Simple Start, $17/month
- Essentials, $28/ month
- Plus, $39/month
- Advanced, $72/month
There’s a 30-day free trial on all Quickbooks plans, and as of this writing, they offer a 50% discount on your subscription’s first three months.
NetSuite Accounting Software
NetSuite is a comprehensive accounting software designed to help enterprises simplify financial management through a range of tools. Some of their main applications include a general ledger and accounts payable and receivable, and financial reporting. Besides automating accounting tasks, users can also take advantage of NetSuite’s real-time platform for strategic decision-making.
NetSuite lets you:
- Get a unified view of your entire business finances
- Centralize financial processes such as accounting, billing, and revenue management
- Sort your income and expenses into tax categories to ensure compliance
- Generate automatic, customized invoices for billing
- Generate comprehensive financial reports, profit and loss statements, and balance sheets
- Store and manage your receipts digitally for easy expense tracking
- Integrate with payment processors for transaction handling
NetSuite Pros
- Offers a wide range of features, including accounts reconciliation, cash management, close management, fixed assents management, and payment management
- Deep financial process customization makes it adaptable to your business’s workflows
- Scalable and grows with your company
- Extensive partner and development network can assist with setup and customization
NetSuite Cons
- The high-cost pricing structure can be too expensive for small businesses
- Implementation can be lengthy, and complex features may require a steep learning curve
- Costs fluctuate depending on add-ons and customizations, making the pricing somewhat unpredictable
NetSuite Plans and Pricing
NetSuite offers custom pricing depending on your business size, industry, number of users, and your specific requirements. General estimates suggest that NetSuite typically starts at $50,000 annually.
How to Choose Between Xero vs. Sage vs Quickbooks vs NetSuite
There are many factors to consider when choosing an accounting tool, including:
- Your SaaS budget
- Your company’s team size
- Your finance department’s goals
- Your current finance tech stack
- The type of product or service your scaleup provides
Xero, Sage, Quickbooks, and NetSuite are all great tools worth trying. But, which one is the best fit for your business?
Here’s a brief summary of which tool is best for different teams and stages of business:
Xero: for small and mid-sized businesses and freelancers
Xero is ideal for small and mid-size businesses and freelancers, and may be best for you if you’re operating in Australia and New Zealand since Xero adoption has been quite significant in these two markets.
Also, Xero is a good choice if you need clear and intuitive software (even on mobile), with basic features at an affordable price. But you’ll need to pay extra for add-ons such as claiming expenses, tracking projects, and analytics.
Overall, users praise Xero for how intuitive its many features are:
“What I really like about Xero is its user-friendly interface making it easy to navigate and use the platform effectively — I never had a hard time since my first day of using it. I also like its cloud-based accessibility with its two-factor authentication feature.
Definitely love how it can easily generate detailed reports and customize them as needed using the filters — provides us insights that are relevant in making business decisions.”
Sage: for large and enterprise businesses
Sage may have a steeper learning curve and a higher price tag, but it’s the solution that many larger enterprises stick with. In fact, the main difference between Sage and Quickbooks is that they’re designed for different business sizes. Enterprises go with Sage because of its:
- Ability to manage multiple business entities
- Broader capabilities around comprehensive reporting, HR, payroll, and payments
“We are an Accounting Firm, and we do Booking and accounting services for our clients. Sage has not disappointed; we have our clients' bank accounts linked to Sage and can trace movement, invoices are all through the Sage, at the end, I can pull out all necessary financial Reports. Our information is backed up on the cloud and easily accessible. It's pretty cheap too.”
That being said, some might not prefer Sage because of its lack of advanced expense tracking, which might be essential for some businesses.
Quickbooks: for small to mid-sized businesses
Quickbooks is great for small to mid-sized businesses that want software with robust financial features and integrations. It’s trusted and well-known by accountants and bookkeepers across the United States. And its strong suit is compliance. It makes it very easy to follow state regulations and federal sales tax rules.
According to users, Quickbooks automates taxation, making the payroll process easy:
“Payroll is super easy. We can set up auto-pay for salaried employees. Our federal and state taxes are calculated automatically, and paperwork filed when needed. We give our employees their log-in info so that they can access their paystubs at will. If I need to edit a pay rate, I can do so in the middle of running payroll without losing my place. Adding a garnishment is extremely simple and it gives you multiple options.”
NetSuite: for enterprises and growing businesses
Another enterprise alternative is NetSuite. Although the price is steep and implementation can take a long time, Netsuite combines deep customization with scalability, making it a preferred option for enterprises and growing businesses.
“NetSuite allows for customization, such as its SuiteScript, SuiteFlow, and SuiteBuilder tools. These tools enable users to tailor workflows, automate processes, and create custom forms and fields to meet unique business requirements. Additionally, NetSuite's modular architecture allows businesses to add or remove functionalities as needed, ensuring the system grows with the business.”
NetSuite is a great solution if you prioritize customization and having complete control over your financial processes.
Combine Your Accounting SaaS With a SaaS Management Solution
Xero, Sage, Quickbooks, and NetSuite are all powerful tools for staying on top of your business expenses. When comparing accounting software, your final choice will depend on your company's specific needs.
However, as your company grows, there’s another type of expense that usually grows with it. And it’s very likely to fall under your accounting tool’s radar.
Adopting a SaaS subscription management platform can be a great way to control your SaaS spend. Here’s where Cledara can help.
With Cledara, you will:
- Connect to your accounting systems, such as Xero or Quickbooks, and push your SaaS transactions and invoices automatically
- Capture and reconcile invoices on autopilot
- Get a centralized view of all your team’s software subscriptions
- Discover hidden software costs
- Manage SaaS platform access and seats effortlessly
- Easily identify and unsubscribe from unnecessary SaaS tools
- Make sure that everyone has access to the tools they need
- Prevent shadow IT
- And much more
Take control of your SaaS spending. Book a free demo and discover Cledara today.
