Disclaimer: Please note this article is not financial advice. The purpose of our blog is purely educational, so please consult a professional accountant or financial advisor before making any financial decision.
Starting up or growing your own business can be tough, but all thanks to technology, accounting processes are made easier through accounting software. As business owners let their business set sail, a reliable accounting software solution would lend them a helping hand. Even if you are still starting a small business or already have a mid-sized business, you can still benefit from integrating accounting software into your systems.
We know you want the best for your business, and so you’re most likely contemplating Quickbooks Pro vs. Sage 50. Still, you don’t know which one is better for your business’s bookkeeping and accounting needs.
To help you out, take a look at our Quickbooks vs. Sage 50 guide below.
What Is Accounting Software?
First things first—what is accounting software? How important is accounting software to the business owners out there?
Accounting software is composed of a wide array of functionality necessary for different businesses. Accounting software helps businesses, small or large, with day-to-day transactions such as invoicing, inventory tracking, expense tracking, audit trails, and payroll. Thus, various accounting software packages are bought to maintain time-efficient tracking and bookkeeping.
Depending on the size of your business, you have a lot of factors to consider when buying accounting software. Research thoroughly to determine if the accounting software you’re considering has the most crucial accounting features: inventory management, project management, and financial management.
What Is the Best Accounting Software?
With ever-evolving technology, accounting applications are developed to deliver better accounting solutions to businesses all over the world. But the real question is which accounting software is most suitable for your company?
As two of the top accounting software worldwide, Quickbooks and Sage 50 have been a great help to businesses in achieving their financial growth goals. Thus, business owners find it hard to choose between the two. But here are a few helpful tips to guide you in selecting the right one for your business.
Know how much it costs.
Consider looking up the prices of different packages. Doing this will help you determine if the software package fits your business needs. You must also know how much you are willing to invest in the software.
What accounting features does it have?
Most accounting software have the basic accounting features your business needs, such as inventory management and an easy-to-use balance sheet and invoicing. Some software packages even have drag-and-drop functionality, allowing accountants to finish their accounting tasks more efficiently.
How many users can access the account?
Usability plays a critical role when it comes to accounting. That is because financial transactions require keen attention to data, analysis, and recording. Thus, if your accounting department has a large number of accountants and bookkeepers, you should determine the usability of the accounting software package you are going to use.
Some accounting software allows multiple users to simultaneously access the account, while some allow only one or two people access at the same time. Once you understand the nature of your business and its accounting needs, you can choose the most suitable accounting software.
How well-protected are you and your business?
Of course, purchasing accounting software packages means you must trust the provider with your data. In addition, the overall security of your business relies on the software you choose to purchase. Thus, it would be best to research not only on its accounting tools, but its financial reporting processes, and how it stores and retrieves financial information.
Why You Should Invest in Accounting Software
Many business owners think using free spreadsheet software suffices when it comes to storing their data. Some even stick with the paper method, relying on typed out or written data. But as your business grows, there are many factors you need to consider when it comes to privacy and security breaches. So regardless of the size of your business right now, investing in accounting software will help secure your business in the long run.
If you are a new business owner, spreadsheets are a handy tool. But when you experience progress and see the growth of your business, the new processes and pace may overwhelm you, and things could get out of hand.
Even the simplest financial reporting task, such as making a balance sheet or cash flow statement, is already time-consuming in the business world. So, you start hiring accountants, bookkeepers, and other accounting professionals to manage your accounts. But, of course, as your business grows, so will your workforce.
One of the reasons why business owners use accounting software is because they don’t have the right accounting system to manage their accounts and financial transactions. Additionally, there is a big percentage of errors that usually occur in manual accounting.
Most business owners spend more time on repetitive accounting tasks. Because of that, many business transactions are also put on hold, consuming more time than usual. Furthermore, the productivity, performance, and efficiency of your accountants and bookkeepers will decrease. Each accounting task takes a long time to do without the proper tools, stalling progress in your business transactions. Hence, the proper accounting software is a reliable source of tools you can use to keep track of your business finances and transactions and save time, money, and resources.
Which Accounting Software Is Better for My Business?
Now you know why there is a need for accounting software, let’s see which accounting software is the best for your business. Here are the two most used accounting software by pioneering and modern business owners.
As one of the leading accounting software worldwide, Quickbooks provides accounting tools and functionality such as financial statements, inventory management, cash flow statements, and payroll. For over 20 years, Quickbooks has been the leading accounting platform, dominating the business management software market. The Quickbooks user interface is easy to use and study, and can be navigated in just a few clicks.
Many rely on the functionality of Quickbooks for small, mid-sized, and large businesses. They offer distinct features and benefits along with different Quickbooks editions. Whichever you choose, Quickbooks has cost-effective, reliable, and time-saving perks for your business.
Introducing Sage 50
As one of the largest accounting software companies, the Sage accounting software simplifies business transactions through its innovative financial management system, allowing your accountants to accomplish various accounting tasks.
Whether generating reports, balancing the money coming in and out, approving payments, or simply invoicing, the Sage system is one way to monitor your business transactions. Thus, no matter the size of your business, Sage has shown to be an outstanding accounting tool over the years.
The Comparison: Quickbooks vs Sage 50
Aside from being two of the leading accounting software in the industry, one will always be more suitable than the other. So, how do you identify whether Quickbooks or Sage 50 meets your business needs? Here’s a comparison of their versions, along with their pros and cons.
Sage 50 vs Quickbooks
Quickbooks is generally the best accounting software option for start-up businesses and small to mid-sized businesses (SMBs) alike, focusing more on bookkeeping and accounting. Sage 50, on the other hand, is much more suitable for larger companies, like e-commerce, manufacturing, and real estate companies, especially when the company needs industry-specific features and functionality.
Either way, Quickbooks and Sage 50 are the most reliable accounting software for small to mid-sized businesses. Additionally, the software you should consider is the one that has the specific functionality you need for your business operations.
- Simple Start: $12.50/month
- Plus: $40.00/month
- Advanced: $90.00/month
- Pro Accounting: $340.00/year
- Premium Accounting: $510.00/year
- Quantum Accounting: $842.00/year
Pros and Cons of Each Accounting Software
If you are unsure about Quickbooks Desktop vs. Sage 50, here are the pros and cons you can consider before selecting the accounting software that fits your business.
- Easy to navigate
- Runs various financial reports
- A wide array of bookkeeping tools like receipt organizing, cash flow management features,
- High security against potential business hazards
- Flexibility with third-party tools and applications
- Prompt customer support
- Limited users
- Limited personalization options
- Occasional system crashes
- File size restrictions
- Does not have advanced features for industry-centered functionality, such as QR scanning, bundle tracking management, e-commerce, and manufacturing
- Industry-specific features like
- Efficient project management functionality
- Ideal for businesses with a vast amount of data such as e-commerce, manufacturing, and real estate management
- Simultaneous access allowing collaboration between multiple users
- Wide variety of accounting packages for advanced and complex management services
- Personalization options
- High security against potential business hazards
- Prompt customer support
- Difficult to set up due to its user interface and navigation
- Difficult to incorporate with third-party accounting applications and other programs
- Not user-friendly
Depending on your business needs, Quickbooks and Sage 50 provide the best accounting solution. Whichever you prefer, these two will make retrieving, storing, and recording data much faster and easier.
So, Which One Is Better for Your Business?
If you are still coming up with the right reasons to buy one of this accounting software, both Quickbooks and Sage 50 have unique functionality that can benefit your business, whether it is a small, mid-sized, or large company. When you know your business's foundation, operations, and processes, you will know which one of the two is the better solution to your accounting and bookkeeping needs.