The introduction of cloud-based accounting software has taken the hassle out of bookkeeping and accounting, while also helping to increase productivity and providing entrepreneurs with real-time information via smartphone apps and access to the internet.
The benefits of cloud-based accounting software cannot be overstated. Business owners can work from wherever they want without being limited to a single PC. Other standard benefits include automated payroll payments, quick processing of expenses, and seamless tracking of your sales tax (VAT).
How do you find the right accounting software, and what should you look for? SME South Africa did the research. We compared three popular accounting software solutions: Sage, Xero, and Intuit Quickbooks.
Sage
1-Month Free Trial
Sage is a cloud-based integrated accounting, payroll and payment systems software that has been supporting entrepreneurs and small businesses across the globe since 1981.
Core Benefits
- Sage offers integrated payroll and payment systems. An Accounting and Payroll Bundle is available for approximately R3,000 per year.
- Collaborate seamlessly with your accountant and team using real-time data.
- Bank-level security ensures all your financial data is safe and protected.
- Manage and control your business’s finances on the go for free via the iOS and Android apps.
Pricing Plans
Accounting Start
Ideal for sole proprietors. Includes basic invoicing and debtor management.
Business Cloud Accounting
Ideal for small businesses. Adds expense management, project accounting, and compliance tools.
Xero
Scalable for All Sizes
Xero accounting software allows its customers to connect with over 1,000 smart business apps, including third-party apps like Stripe and Vend in the Xero app marketplace. Business owners can sync their bank and financial information, automate tasks like invoicing and reporting, and reconcile their bank transactions daily.
You can also use Xero to communicate and work with your accountant or employees, including leaving comments and discussing business data in real time.
Core Benefits
- Automated income and expense tracking with secure daily bank connections.
- Real-time inventory management and simplified employee expense claims.
- Run your business on the go with mobile apps for iOS and Android.
- All plans include bank connections, inventory, reporting, accepting payments, purchase orders, Smart Document Capture, and VAT returns.
Pricing Plans
*Note: Xero frequently runs promotional pricing. Prices reflect their standard 3-month introductory offers.
Starter
First 3 months, then R450 p/m. For sole traders. Send quotes, 20 invoices, and enter 5 bills.
Standard
First 3 months, then R795 p/m. For growing businesses. Unlimited invoices, quotes, and bills.
Premium
First 3 months, then R1095 p/m. For established businesses. Includes multiple currency handling.
Optional Add-ons: Claim expenses (from R72 per user/month) | Project tracking (from R126 per user/month).
What We Like
- Connects with over 1,000 smart business apps and add-ons.
- Supports unlimited users at no extra cost on all base plans.
- Highly intuitive dashboard with automated bank reconciliation.
- Strong collaboration tools for business owners and accountants.
Things to Consider
- More expensive than similar cloud accounting software.
- The Starter plan severely limits invoices (20) and bills (5).
- Lacks inbound phone support; relies on email and callbacks.
- Expense claims and project tracking require paid add-ons.
Frequently Asked Questions
- Yes. Xero protects your data with industry-standard encryption, mandatory multi-factor authentication (MFA), and highly secure, enterprise-grade cloud servers.
- Xero seamlessly connects via its App Store, offering over 1,000 plug-and-play integrations for payment gateways, CRMs, inventory managers, and payroll systems.
- Absolutely. Unlike many competitors, Xero allows unlimited users at no extra cost on all of its base plans, complete with customizable, role-based access.
- Xero’s Premium plan supports over 160 currencies. It automatically updates exchange rates hourly and instantly calculates foreign currency gains and losses.
- Because Xero is 100% cloud-based, your data is automatically backed up in real-time across multiple secure servers, eliminating the risk of local hardware failures.
Intuit QuickBooks
Great for Reporting
QuickBooks Online is a cloud-based financial management software with over 5.6 million customers globally. It helps with tasks such as creating estimates and invoices, tracking sales and cash flow, and managing your customers and suppliers.
Core Benefits
- Generate up to 60 different financial and operational reports.
- Manage projects in one place from start to finish.
- Backs up data automatically, with bank-level security and encryption.
- Extensive support available, including video tutorials to help business owners complete specific accounting tasks.
Pricing Plans
*Note: QuickBooks frequently offers 50% off for 6-month deals on their website. Prices below are standard subscription rates.
Simple Start
Ideal for sole proprietors. 1 User + Accountant. Tracks sales, expenses, profits, and tax.
Essentials
Up to 3 Users. Adds bill management, multi-currency, and sales quotes.
Plus
Up to 25 Users. Adds inventory tracking, purchase orders, and project profitability tracking.
