Xero vs QuickBooks vs Sage

Compare Xero, QuickBooks and Sage to find the best accounting software for your UK business in 2025

Choosing the right accounting software can make a huge difference to how efficiently you run your business. Whether you are a sole trader, limited company, or growing SME, cloud-based platforms like Xero, QuickBooks, and Sage can help you stay on top of your finances, manage VAT, and remain compliant with HMRC.

But each platform offers something different. In this guide, we compare Xero, QuickBooks and Sage across features, pricing, ease of use and suitability, so you can choose the right software for your needs.

What are Xero, QuickBooks and Sage?

These are three of the most widely used cloud accounting platforms in the UK. Each allows businesses to track income and expenses, send invoices, reconcile bank accounts, submit VAT returns and generate reports.

  • Xero is known for its modern interface and deep integration with third-party apps.

  • QuickBooks is user-friendly, mobile-focused and ideal for smaller or service-based businesses.

  • Sage has been a trusted UK accounting brand for decades and offers strong payroll and compliance tools.

Who is each platform best for?

  • Xero is great for startups, growing businesses and anyone needing custom features or app integrations.

  • QuickBooks suits sole traders, contractors and business owners who want a simple, guided experience.

  • Sage works well for businesses with staff, those needing strong payroll tools, or firms in sectors like construction or retail.

Key features compared

While all three platforms cover the basics of bookkeeping and reporting, they differ in how they deliver those features.

Invoicing

  • Xero lets you create unlimited customisable invoices, including recurring invoices and reminders.

  • QuickBooks offers a straightforward invoicing tool that works brilliantly via mobile.

  • Sage has basic invoicing but fewer options for design and automation.

Bank reconciliation

  • Xero uses live bank feeds and rules to match transactions quickly.

  • QuickBooks offers smart suggestions to speed up reconciliation.

  • Sage supports reconciliation but can feel less intuitive to new users.

VAT and MTD compliance

  • All three platforms are fully compliant with Making Tax Digital.

  • Each allows you to calculate VAT, prepare returns and submit them to HMRC directly.

  • Sage has a long history with UK compliance, which gives some users extra peace of mind.

Reporting

  • Xero offers powerful, flexible reports including cash flow forecasts.

  • QuickBooks focuses on real-time dashboards and visual summaries.

  • Sage provides detailed traditional-style reports suitable for more established businesses.

Mobile access

  • Xero’s mobile app is clean and capable, ideal for business on the go.

  • QuickBooks has one of the best-rated apps for invoicing and receipt capture.

  • Sage’s app covers the essentials but feels more basic.

Integrations

  • Xero connects with over 1,000 apps including e-commerce, CRM and inventory systems.

  • QuickBooks has around 750 integrations covering similar tools.

  • Sage has fewer app integrations, though this may not be a concern for simpler businesses.

How much does each cost in 2025?

Prices vary depending on features, but entry-level pricing as of 2025 is roughly:

  • Xero Starter: £15 per month

  • QuickBooks Simple Start: £14 per month

  • Sage Accounting Start: £14 per month

Each platform offers tiered pricing. Xero tends to become more expensive at higher levels, while Sage sometimes includes payroll within bundled packages.

Payroll and staff features

  • Xero Payroll is an optional add-on with useful tools for small teams.

  • QuickBooks Payroll integrates well for basic needs.

  • Sage Payroll is one of the strongest options for larger teams or complex payroll setups.

If your business pays employees or subcontractors, Sage may be the better long-term fit.

What are the pros and cons?

Xero Pros

  • Clean interface and good user experience

  • Huge number of integrations and add-ons

  • Supports complex features like project tracking and multicurrency

Xero Cons

  • The starter plan limits invoices and bills

  • Costs rise quickly as you add features

  • Some new users find it slightly harder to learn

QuickBooks Pros

  • Very easy to set up and use

  • Excellent mobile app and live dashboard tools

  • Competitive pricing, especially during promotional offers

QuickBooks Cons

  • Limited features in the basic plan

  • Less flexibility for growing or complex businesses

  • UK customer support may be limited to set hours

Sage Pros

  • Trusted by accountants and UK businesses for decades

  • Strong payroll, VAT and CIS functionality

  • Good for compliance-heavy industries

Sage Cons

  • Interface feels more traditional and dated

  • Fewer integrations with third-party apps

  • Some features are harder to access without training

Which one do accountants prefer?

Most UK accountants support all three platforms. However, many firms lean towards Xero and Sage due to their strong reporting tools and permissions for accountants. QuickBooks is often popular with small businesses who want to handle bookkeeping in-house.

What kind of business suits each platform?

  • If you are a freelancer or sole trader, QuickBooks offers simplicity and great value.

  • If you are scaling a company or need advanced tools, Xero gives you the flexibility to grow.

  • If your business has employees or needs strong compliance, Sage may suit you better.

Tips before you choose

  • Take advantage of free trials to test each system.

  • Speak to your accountant about their preferred platform.

  • Think about future needs like payroll or VAT.

  • Review the mobile apps if you work on the go.

  • Make sure the software integrates with any other tools you use.

Final thoughts

Xero, QuickBooks and Sage all offer reliable accounting solutions for UK businesses. Each one has unique strengths, whether that is user-friendliness, integration potential or payroll power. Your decision should come down to your business size, how you manage your finances, and which features matter most.

There is no one-size-fits-all solution, but by taking time to explore your options, you can choose a platform that supports your growth, saves time and keeps you HMRC-compliant.