How Much Does Sage Accounting Cost?

Sage Accounting is a great accounting tool for small businesses that want to access Sage’s ecosystem of business software, including its payroll and HR tools.

Its pricing starts at £15 per month and goes up to £59 per month, which is quite average for an accounting software platform, with some competitors offering cheaper entry-level plans but more expensive top-tier plans. For this reason, Sage’s starter plan might not be worth it for sole traders looking for a cheap option, but its two more expensive plans are a good investment for businesses that sell products and want strong inventory management tools.

We’ll go over how much each Sage plan costs, what’s included in it, and what type of business it’s for. We’ll also break down how much its add-on payroll products cost and help you decide whether Sage is worth it for your business.

For an in-depth look at Sage Accounting’s features, head over to our Sage Accounting Review.

Sage Accounting Pricing Plans

Sage Accounting only has three pricing tiers, less than most competitors, with monthly prices ranging from £15 to £59 per month.

Here’s a quick overview of each plan:

Accounting Start: £15/month

• Who is it for? VAT-registered sole traders or micro businesses, such as startups
• What is it for? Sending and tracking invoices, calculating VAT, and submitting tax returns on a very small scale

Sage’s Accounting Start plan costs £15 per month. It’s designed for VAT-registered sole traders or micro businesses looking for a basic accounting tool to help them track incoming and submit tax returns.

Accounting Start: Features

The plan has a one-user limit but allows users to send an unlimited number of invoices. Other features include:

• Alerts when invoices are viewed and paid
• Bank feed integration and reconciliation
• VAT calculations and returns via the Making Tax Digital (MTD) portal

The fact that the Accounting Start plan comes with unlimited invoicing is a plus, since starter plans with competitors Xero and Zoho Books restrict the number of invoices users can send. However, the Accounting Start plan is very restrictive in other ways since it doesn’t allow for expense tracking, a feature all competitor starter plans have.

For this reason, Sage’s Accounting Start plan isn’t the best value accounting software for the self-employed. You can send invoices and track expenses for less with competitors such as Zoho Books and QuickBooks (free or from £10 per month), whereas you’ll have to upgrade to the £30 per month Accounting Standard plan to get expense tracking with Sage.

Accounting Standard: £30/month

• Who is it for? Small businesses working with domestic suppliers and clients
• What is it for? Managing invoices and expenses, calculating and submitting VAT and CIS returns, and financial planning on a small scale

Sage’s Accounting Standard plan costs £30 per month and is designed for small businesses that operate domestically.

Accounting Standard: Upgraded features vs Start

Key differences between the Accounting Standard plan and the Accounting Start plan are the fact that the user limit gets bumped up to three and that users can track expenses. Other additional features include:

• CIS calculation and submissions
• Quote sending
• Advanced reporting, including custom reports and cash flow projections
• 30 AI-powered expense receipt data captures and categorisations per month

The Standard plan’s added feature of expense tracking and advanced reporting make it better value for money than the Start plan. At £30 per month, and with no limits on clients, invoices and quotes, or expenses, this plan’s price is also in line with most competitors, including QuickBooks.

Accounting Plus: £59/month

• Who is it for? Growing businesses managing products and inventory that operate internationally
• What is it for? Managing invoices and expenses internationally, calculating and submitting VAT and CIS returns, and financial planning on a moderate scale

The Accounting Plus plan is Sage’s most expensive plan and costs £59 per month. It’s designed for small to medium businesses that sell products and operate internationally.

Accounting Plus: Upgraded features vs Accounting Standard

The main difference between the Accounting Plus plan and the Standard plan is that the Plus plan has an unlimited user limit and comes with multi-currency invoicing and inventory management. Other features include:

• Budget setting, management, and performance tracking
• Automatic exchange rates and exchange rate gains and loss report
• 100 AI-powered expense receipt data captures and categorisations per month
• Sage Copilot AI accounting assistant

Overall, Sage Accounting Plus’s inventory management and budgeting features make it a relatively good value option for growing businesses. You can get similar tools for less with Zoho Books’ £25 per month Premium plan, but this plan sets limits on users and invoice numbers and doesn’t offer AI tools.

Sage Add-on Pricing

Besides accounting software, Sage’s most popular tools are its payroll and HR software.

Here’s what Sage Payroll costs:

• Payroll Essentials: £10/month for five employees, plus £2/month/additional employee
• Payroll Standard: £20/month for five employees, plus £4/month/additional employee
• Payroll Premium: £30/month for five employees, plus £6/month/additional employee

All Sage Payroll plans come with basic HR features, although Sage also offers separate HR software. The increases in price reflect an increase in features, such as increased automation and reporting capabilities. For a full breakdown, see our guide to Sage Payroll pricing.

Sage’s separate HR software, Sage HR, only has one plan and costs £4.60 per month per employee. There are also a lot of add-on features:

• Performance: £2.30 per employee/month
• Timesheets: £2.30 per employee/month
• Shift scheduling: £2.30 per employee/month
• Expenses: £1.15 per employee/month
• Recruitment: £170 per month

Other Sage software

Sage offers other software solutions designed for medium-sized businesses. These include more advanced versions of its accounting, payroll, and HR software platforms.

Most of these products have quote-based pricing, so businesses need to contact Sage for exact pricing. Additional software tools include:

• Sage 50 Accounting (£99-£199/month): A more advanced accounting software for small businesses with complex needs
• Sage 50 Payroll (custom pricing): A more advanced payroll software for small to medium-sized businesses
• Sage People (custom pricing): A more advanced solution for international businesses with over 250 employees
• Sage Intacct (custom pricing): An accounting and financial management software for medium-sized businesses
• Sage 200 (custom pricing): A business management software for growing small to medium businesses
• Sage X3 (custom pricing): A production, supply chain, and financial management software for medium-sized businesses

Does Sage Accounting Have Any Hidden Fees?

Sage Accounting only has one fee that we’d classify as “hidden”.

Sage’s Standard and Plus plans come with a set limit of expense receipt data capture and classifications: 30 on the Standard plan, and 100 on the Plus plan. Any capture after that costs £0.20 per capture.

Other than that, Sage doesn’t have any hidden fees, since its payroll and HR products are add-on tools that aren’t essential for running day-to-day accounting.

Are There Discounts Available for Sage Accounting?

Sage doesn’t offer discounts for paying annually instead of monthly, something many of its competitors do. However, it does offer the first five months free on any plan for new users.

Sage also provides a 50% discount for charities and non-profits. This discount is valid not just for Sage’s accounting product but its payroll and HR product, too. Eligible organisations can find out more about Sage’s discounts for non-profits, as well as how to apply, on Sage’s website.

Sage Accounting Alternatives

Here’s a quick overview of what Sage Accounting’s top competitors have to offer:

Zoho Books has a higher price range than Sage, with its most expensive plan costing £165 per month compared to Sage’s £59. However, Zoho Books’ mid-range plans, costing £10 to £25 per month, offer better value for money than Sage’s plans. That’s because they come with similar features, such as advanced reporting and inventory management, for a lower price. That said, Zoho Books does place a number limit on invoice sends and expenses, which varies depending on the plan. For highly active businesses, Sage might be a better option.

It’s a similar story with QuickBooks. Its £115 per month plan makes it more expensive overall than Sage, but if you discount this plan, QuickBooks’ pricing range is £10 to £47 per month, which is less than Sage’s £15 to £59 per month range. QuickBooks’ £47 per month plan also offers very similar tools to Sage’s £59 per month plan, including allowing users to send and log unlimited invoices and expenses, making it better value.

That said, although QuickBooks also offers payroll software, unlike Sage, it doesn’t offer advanced versions for growing businesses and doesn’t offer HR tools. This makes Sage a better option for businesses looking to scale with an all-in-one platform.

Xero and Sage are quite evenly matched when it comes to pricing, although Xero’s pricing for its starter plan is £1 more per month than Sage’s. Xero’s starter plan also has a 20 invoice and quote limit, making it highly restrictive compared to Sage’s starter plan. That said, Xero has a much better system for tracking expenses than Sage, allowing for mileage tracking and calculations and for expenses to be assigned to clients and employees. This makes Xero a better choice for businesses that track a variety of expenses frequently, while Sage is more suitable for managing bills from suppliers. Read our Xero Review for information on its features.