Sage 100 vs QuickBooks Online as a Cloud Accounting Software

August 31, 2022

Irrespective of the industry, size or revenue, businesses today need to be nimble and prepared to scale on-demand. To augment this speed of business, an accounting software goes a long way and is almost mandatory nowadays. It would be even better if you opt for cloud accounting software in the current times as they outperform the traditional ones in terms of speed, security and accessibility. Cloud accounting software saves a lot of costs and allows access to information from any corner of the world, and most cloud accounting solutions are way more user-friendly. 

In this article, we will discuss two popular accounting product examples – Sage 100, a desktop application and QuickBooks Online which is a cloud accounting solution. The goal is to compare the limitations of a desktop accounting application and how modern cloud accounting solutions can increase productivity, lower administrative costs and adapt to rapid business changes.

What is a Cloud-Based Accounting Software? 

Cloud accounting software is simply a synonym for online accounting software. Hosted on a remote server without any desktop application, the software works on the same principles as the SaaS (Software as a Service) business model. The model basically signifies a piece of any software that is operated through the internet aka the cloud and usually requires companies to pay a certain fee to access it. Arguably the most difficult to design, SaaS products require extensive coding to be worthwhile. Cloud accounting software rids you of the worries of installing and maintaining the software on individual desktop computers or additional overhead expenses including IT support resources. Cloud access means that employees can access relevant financial data via a browser and an internet connection, without going through the hassle of installing and setting it up on their personal computers. 

Traditional software could make accessing important information frustratingly limited, not in real-time, requiring regular software updates and backup, whereas, in cloud computing systems, the data is managed in real-time, updates, patches and backups are automatically managed, increasing the overall productivity of every team member. In most cases, these software also have public APIs that make integrations with other third-party software simpler and seamless.

Brief background on Sage 100

Sage 100 was created in the ’80s by another company named MAS 90 before it was acquired by the Sage Group. Sage 100 remained a popular desktop accounting application and is used by accounting firms, manufacturing, distribution, and construction companies among others.

It performed well for a desktop application and catered to the industry-specific needs of most construction and manufacturing firms. The product found popularity among accountants who preferred it for its ease of use. In 2018, Sage decided to push Sage 100 to the cloud, but its customers have been reluctant to switch due to various technical concerns.

In effect, customers on Sage 100 desktop applications are finding themselves increasingly at risk of loss of support or updates.

Limitations of Sage 100

Mostly used by small and medium businesses, Sage 100 has limitations that may cause frustration for some of the users. For instance, users that are mostly managing small businesses often report that the software is very slow even though they are dealing with a very small number of transactions. Where some of its modules allow users to create their own editable reports with the help of the Crystal Reports Tool, an important percentage of its modules such as Job Cost and Work Order Processing still lack the feature and generate reports that are non-editable for users. This means that the users cannot undo an entry once updated and is a feature that might repel a lot of businesses as they would always expect a margin of error to be given to them and rightfully so. 

One of the challenges with Sage is that it also does not offer transparency in its pricing. This can cause anxiety and the inability to compare with other popular applications till a custom quote is developed. In addition, the set-up time, process automation and getting operational takes time. Oftentimes, an accounting professional may require the help of a product expert or a technical resource to configure the application on their local machine. This could take several hours or sometimes longer depending on the availability of the support resource.

As the desktop application ages, it has the propensity to crash frequently. These crashes require the user to restart the application and often start their entire work from scratch. Frequent crashes could lead to data corruption or losses. Other limitations such as batch processing and similar other features could be lacking hurting the overall productivity. 

Customers have complained that bank reconciliations do not get automated in Sage 100 and the software lacks the ability to allow the reprinting of a payroll register after it is once produced even though it is required for audit purposes on a regular basis. 

As Sage 100 v2018 support ended earlier this year, customers need to find alternative solutions that can help them stay productive, maintain their books efficiently and have an effective accounting solution that scales with their growing business.

What Makes QuickBooks Online a Better Choice?

QuickBooks Online could be a better choice than Sage 100 due to a number of factors beginning with cost and ease of use. SMBs are price-sensitive and may not have extra resources who have an IT background. QuickBooks Online is a simple login and begins using a solution that requires little to no additional investments.

QuickBooks Online also allows the users to scan receipts and track their mileage from the QuickBooks mobile application, a feature not available with Sage 100.. . QuickBooks Online has an active community of ProAdvisors who offer product support, training and help with bookkeeping or CoA queries.

QuickBooks Online has a robust and fast-growing marketplace of apps that has over 600+ accounting, productivity and business apps… These apps help businesses automate processes, and add invaluable metrics or functionality to their businesses without requiring extensive or expensive customizations.

QuickBooks Online is also considered way more user-friendly with a comprehensive dashboard and installation procedures even a non-accounting person can easily understand. The software is leading the race with its automatic bank reconciliation and invoicing features, both where Sage 100 struggled. Similarly, QuickBooks Online is ahead of Sage 100 with its customization features and automatic synchronization with bank accounts. The software also allows you to undo your entries as well as perform intercompany analysis aided by its automatically generated monthly and quarterly comparisons. 

Although Sage 100 is used by a number of small and medium businesses, they struggle because the software is more supportive of larger enterprises. It is, in fact, QuickBooks Online with its basic, to-the-point and simple features that have a greater bias toward benefitting the SMBs. 

Choose the right software

Precisely, the current times are requiring and are supportive of cloud accounting software. Operating through the internet, they are super helpful for businesses struggling with accounting issues. However, since the market is diverse, it is important to choose the right software. For a user-friendly, convenient, and affordable experience, particularly if you are a small-scale business, it is recommended that you opt for the seamless QuickBooks Online. 

About SaaS Direct
SaaS Direct is a multi-award-winning official QuickBooks Service Provider (QSP) in the US and Canada. A leader in data conversions with 20+ years of experience with clients across North America, Asia-Pacific, Europe & the Middle East. We move data error-free with zero downtime across 50+ major accounting systems and ERP. Talk to us regarding your data conversion needs for a session of expert advice.