Bookkeeping software is an essential tool for small businesses in Canada, allowing them to manage their finances and accounting in a more efficient and streamlined manner. Two popular bookkeeping software options in Canada are Sage and Xero. In this article, we will compare and contrast the features, pricing, and user experience of both Sage and Xero to help you make an informed decision about which one to use.

Sage vs Xero


Sage is an accounting and bookkeeping software that has been around for over 35 years. It is a popular choice for small businesses in Canada and offers a range of features to help manage finances, including invoicing, payment tracking, and financial reporting.

Features: One of the main features of Sage is its ability to handle payroll and HR functions. This feature makes it easy for small businesses to manage their employees’ salaries, vacation days, and other HR-related tasks. Sage also offers inventory management, project tracking, and multi-currency support.

Pricing: Sage offers a range of pricing plans to suit different business needs, including a free trial, which allows users to test the software before committing to a paid plan. The paid plans start at $10 CAD per month and go up to $45 CAD per month, depending on the features required.

User Experience: Sage has a user-friendly interface and provides easy navigation between the different features. The software is also customizable, allowing users to tailor the interface to their specific needs.


Xero is a cloud-based accounting software that has gained popularity in Canada in recent years. It is designed specifically for small businesses and offers features such as invoicing, expense tracking, and financial reporting.

Features: One of the standout features of Xero is its integration with over 800 third-party apps. This allows users to customize the software to suit their specific business needs. Xero also offers payroll and HR functions, inventory management, and multi-currency support.

Pricing: Xero offers a 30-day free trial, after which users can choose from three pricing plans. The plans start at $20 CAD per month and go up to $40 CAD per month, depending on the features required.

User Experience: Xero has a sleek and modern interface, which is easy to navigate. The software is designed to be user-friendly and intuitive, making it easy for small business owners to manage their finances without needing extensive accounting knowledge.

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Both Sage and Xero offer a range of features that make them suitable for small businesses in Canada. However, there are some key differences between the two.

Firstly, Sage offers more robust payroll and HR functions, making it a better choice for businesses that require these features. Xero, on the other hand, offers more customization options through its integration with third-party apps.

Secondly, Sage offers a wider range of pricing plans, making it easier for businesses to choose a plan that suits their specific needs and budget. Xero, however, offers a more modern and intuitive user interface, which may be preferred by some users.

Overall, both Sage and Xero are excellent bookkeeping software options for small businesses in Canada. The choice between the two will ultimately depend on the specific needs and preferences of each individual business.