What is The Right Accounting Software for Your Business?
If you're running a small business in South Africa, choosing the right accounting software can make or break your efficiency, compliance, and peace of mind. Whether you're handling your books yourself or working with an accountant, the right platform helps you stay on top of cash flow, tax deadlines, invoices, and expenses—without spending hours buried in spreadsheets.
But the South African market has changed. It’s no longer just about Pastel on a desktop. Today’s small businesses demand cloud-first solutions that are mobile-friendly, automated, locally compliant, and able to scale with your growth. With so many tools on offer, it's easy to feel overwhelmed. Do you go with the familiar names like Sage or QuickBooks? Is Xero really better? And what about newer players like Zoho Books, which offers a free plan and deep automation?
This guide was created to give you a clear, up-to-date comparison of the four best accounting software platforms in South Africa for small businesses. We’ve done the research, pulled in real user feedback, and compared the most important features side-by-side—so you can make the smartest decision for your business, your budget, and your future.
Let’s dive in.
Why Accounting Software Matters for South African SMEs
Running a small business in South Africa comes with enough challenges—your accounting system shouldn’t be one of them. With new VAT rules, evolving SARS eFiling requirements, and increasing pressure to stay lean and responsive, manual bookkeeping just doesn’t cut it anymore.
Good accounting software does more than just track your income and expenses. It gives you real-time visibility into your business health, helps you avoid costly mistakes, and frees up your time so you can focus on growth. Even if you’re working with an accountant or tax practitioner, the right tool ensures you’re both looking at the same up-to-date numbers.
In the South African context, a great accounting platform must also support local compliance needs—like VAT submissions, PAYE integration, and financials that align with SARS and CIPC standards. It should be mobile-friendly for business owners on the go, flexible enough to grow with you, and offer local support when you need help fast.
Ultimately, accounting software isn’t just a tool—it’s a business system. It affects how quickly you get paid, how confident you feel making decisions, and how prepared you are for growth or audit. Choosing the right platform early on can save you hundreds of hours and thousands of rands over the life of your business.
Evaluation Criteria
Not all accounting software is created equal—and what works for a freelancer with no VAT obligations might be a disaster for a growing business with payroll and inventory needs. That’s why we’ve evaluated each platform using a clear set of criteria that matter most to South African small businesses.
Here’s what we looked at:
1. Pricing and Plans (in Rands)
We break down monthly and annual costs, free trials, and what’s included at each tier. Many platforms offer limited functionality on cheaper plans, so we looked closely at real value for money.
2. Core Features
This includes invoicing, expense tracking, bank feeds, VAT support, financial reporting, customer management, inventory tracking, and quote-to-invoice flows.
3. Automation and Time-Saving Tools
We assessed which tools offer automation features like recurring billing, bank rules, invoice reminders, and integration with tools like Dext or PayFast.
4. Local Compliance and SARS Readiness
Does the software support South African VAT rules? Can you export SARS-friendly reports? Does it integrate with payroll that supports PAYE and UIF?
5. Ease of Use
We considered how intuitive the platform is for business owners without an accounting background. This includes onboarding, dashboard design, mobile access, and speed.
6. Support and Community
Good software is only as useful as the help you can get. We checked for local support hours, responsiveness, helpdesk quality, and community resources or training.
7. App Ecosystem and Integrations
We explored what each platform connects with—such as ecommerce tools, POS systems, payment gateways, CRM platforms, and accountant portals.
8. Scalability and Growth Potential
Does the software grow with you? We evaluated how easy it is to add new users, integrate more services, or handle complex needs like multi-currency, multi-user, and audit-ready reporting.
Each of the four tools we review—Sage Business Cloud Accounting, Xero, QuickBooks Online, and Zoho Books—has its strengths and weaknesses. This framework helps you see how they stack up, not just in general, but for your business stage and goals.
Top 4 Accounting Software Compared
We’ve narrowed the field to four standout platforms that serve the needs of South African small businesses across industries and income brackets. Each one is cloud-based, locally available, and widely used by entrepreneurs, bookkeepers, and accountants alike.
Here’s a quick overview before we dive into side-by-side comparisons and deeper reviews.
1. Sage Business Cloud Accounting
Once known as Pastel, Sage is a household name in South African accounting. The cloud version, Sage Business Cloud Accounting, brings Pastel’s legacy into the modern age—offering a clean interface, local compliance features, and seamless integration with SARS reporting formats. It's developed with South African businesses in mind, from micro-enterprises to growing SMEs.
Ideal for: Businesses that want local support and familiar terminology
Not ideal for: Advanced automation or complex integration needs
2. Xero
Xero is a global favourite among startups and tech-savvy business owners. Known for its beautiful interface, strong automation features, and powerful integrations, it’s perfect for business owners who want to move fast and manage finances with minimal manual effort. Xero also plays well with tools like Dext, Shopify, and PayFast.
Ideal for: Modern, service-based businesses with remote teams or advisors
Not ideal for: Cash-strapped startups or those needing detailed inventory tracking on lower plans
3. QuickBooks Online
Intuit’s QuickBooks is a giant in the accounting world. The cloud version used in South Africa is feature-rich, widely adopted, and especially popular with accountants and bookkeepers who want tried-and-tested reliability. The mobile app is strong, and the system handles everything from quotes to payroll add-ons.
Ideal for: Traditional businesses who want a complete, structured system
Not ideal for: Those who value design simplicity or non-accountants doing their own books
4. Zoho Books
Zoho is a fast-growing player with a suite of business apps—and Zoho Books is one of the most powerful free or low-cost options available. Despite its lower price point, it offers automation, invoice workflows, inventory management, and mobile access that rivals far more expensive platforms. It’s gaining popularity in South Africa, especially with startups and cost-conscious founders.
Ideal for: Cost-sensitive businesses and startups with simple or moderate needs
Not ideal for: Businesses needing localised payroll or deep South African tax integrations
Side-by-Side Comparison Table
Below is a side-by-side look at the key features and characteristics of the four platforms: Sage Business Cloud Accounting, Xero, QuickBooks Online, and Zoho Books. This table is designed to help you quickly see where each tool shines—and where it may fall short depending on your business needs.
| Feature / Platform | Sage Accounting | Xero | QuickBooks Online | Zoho Books |
|---|---|---|---|---|
| Starting Price (per month) | R185 | R400 | R270 | Free (limited) / R190 |
| Free Trial | 30 days | 30 days | 30 days | 14 days |
| Invoicing + Quotes | Yes | Yes | Yes | Yes |
| Bank Feeds | Yes (major SA banks) | Yes | Yes | Yes |
| Mobile App | Good (SA-focused) | Excellent | Excellent | Good |
| VAT Support (SA) | Yes (SARS formats) | Yes (manual export) | Yes (basic) | Limited (custom setup) |
| Inventory Tracking | Yes (on higher plans) | Yes (on higher plans) | Yes (even on mid plans) | Yes (even on free/low plans) |
| Multi-Currency | Yes (higher plan) | Yes (mid plan) | Yes (mid/high plan) | Yes (included) |
| Recurring Invoices | Yes | Yes | Yes | Yes |
| Payroll Add-On | Yes (via Sage Payroll) | No (3rd party only) | Yes (via QuickPayroll) | No native payroll |
| Automation (Rules/OCR) | Basic | Advanced (via Dext) | Medium | Advanced (built-in) |
| Third-Party Integrations | Limited | Excellent | Good | Good (esp. within Zoho suite) |
| Ease of Use | Familiar, structured | Clean, modern UI | Functional, traditional | Simple, slightly technical |
| Best For | Local SMEs with SA roots | Cloud-first service firms | Bookkeeper-led businesses | Startups, solopreneurs |
All prices and features accurate as of July 2025. Pricing may vary based on plan type and annual discounts.
Sage Business Cloud Accounting — In-Depth Review
Sage Business Cloud Accounting is the evolution of what South African businesses used to know as “Pastel.” While the name has changed, the goal is the same: give small businesses a practical, locally-aligned accounting system that’s easy to set up and trusted by accountants.
For businesses that want something familiar, Sage is often the first stop. It’s built for the South African market, offers strong VAT reporting, and integrates easily with Sage Payroll. If you’ve worked with Pastel in the past, this cloud-based version will feel like a natural (and necessary) upgrade.
What We Like
1. Designed for SA compliance
Sage handles South African VAT requirements out of the box and exports in formats that align with SARS expectations. You don’t need to fight with foreign templates or hack workarounds.
2. Local support and terminology
Support is based in South Africa, which means faster responses during SA business hours. You also get access to local accountants who know the system and can plug in seamlessly.
3. Familiar layout and flow
If you or your bookkeeper have used Sage or Pastel before, there’s almost no learning curve. The navigation is simple, and the financial reports are laid out the way most South African accountants prefer.
4. Payroll integration
Unlike some competitors, Sage has its own payroll product, which means integration is native and smooth—no third-party systems required.
What Could Be Better
1. Limited automation
Compared to Xero or Zoho, Sage falls short on automation. You won’t find smart OCR data capture or powerful rule-based categorization unless you bolt on extra tools.
2. Not ideal for non-accountants
The interface, while clean, still feels built for bookkeepers—not founders. It’s structured and traditional, but less intuitive than modern systems like Xero.
3. Integration options are thin
Sage’s third-party ecosystem is small. If you’re running an ecommerce business or need to connect lots of tools, this may be limiting.
4. Costs add up fast
The base plan is affordable, but inventory, payroll, and multi-user functions can quickly bump up your monthly bill.
Ideal Users
South African businesses that want local compliance without complexity
Companies already using Sage Payroll or migrating from desktop Pastel
Traditional SMEs with in-house bookkeeping or accountant support
Not Ideal For
Founders who want modern UI or automation-first features
Tech-enabled businesses needing custom integrations or ecommerce
Businesses outside of South Africa (limited global support)
Xero — In-Depth Review
Xero has become the go-to accounting software for modern, cloud-first businesses around the world—and South Africa is no exception. With a clean user interface, powerful automation, and an ecosystem of integrations, Xero is a favourite among founders who want speed, flexibility, and minimal manual effort.
Unlike Sage, which leans into South African compliance, Xero takes a global-first approach. That means some local features (like VAT submissions) require a bit of configuration or third-party tools. But for service-based businesses, consultants, freelancers, and agencies, Xero is often the smoothest ride from quote to reconciliation.
What We Like
1. Beautiful, intuitive interface
Everything in Xero feels modern and easy to navigate. Even non-accountants find it friendly. The dashboard gives you a live view of cash flow, invoices, and bank balances in seconds.
2. Automation that actually saves time
Bank rules, automatic invoice reminders, recurring bills, and deep integrations with tools like Dext or PayFast make life easier. For businesses that hate admin, Xero is a major relief.
3. Vast integration ecosystem
Xero connects with hundreds of apps—CRM systems, ecommerce platforms, payroll tools, and more. If you run a tech-forward business or want to automate multiple parts of your workflow, this matters.
4. Multi-user, multi-location friendly
Xero shines for remote teams or businesses with advisors logging in from different places. Everything is in the cloud, updated in real time, and easy to share.
What Could Be Better
1. Not natively built for South Africa
While Xero can handle South African VAT and bank feeds, it doesn’t have native SARS integration or local payroll. You’ll need to export reports manually or use third-party payroll services.
2. Pricier than it looks
The starting price seems low, but core features like multi-currency, inventory, and expense claims only unlock on higher-tier plans.
3. Limited local support
Xero support is global, which means response times can vary. There's growing support from SA-based accountants and bookkeepers, but you may miss the “local feel” Sage offers.
Ideal Users
Cloud-based businesses, freelancers, consultants, and agencies
Business owners who want automation, clean design, and minimal admin
Companies that use multiple tools and want a central financial hub
Not Ideal For
Retailers or manufacturers needing strong built-in inventory tools
Businesses that need direct SARS or CIPC integration
Those unfamiliar with cloud tools who prefer more traditional systems
QuickBooks Online — In-Depth Review
QuickBooks is one of the most recognized names in global accounting software. Its online version brings powerful features to South African small businesses—particularly those that want structure, reliability, and a system trusted by accountants and bookkeepers across the board.
QuickBooks Online strikes a balance between ease of use and robust functionality. While it’s not quite as slick as Xero or as locally aligned as Sage, it offers a solid all-in-one solution for most SME needs—especially if you want solid reporting, payroll add-ons, and traditional double-entry bookkeeping built in.
What We Like
1. Widely adopted and well-supported
QuickBooks has a large global user base and a growing footprint in South Africa. It’s easy to find an accountant who works with it, and there’s plenty of training material available online.
2. Complete accounting toolkit
It covers all the basics—plus extras like time tracking, project-based accounting, and decent inventory tools on higher plans. You can run quotes, invoices, bank feeds, VAT reports, and more from one dashboard.
3. Integrated payroll (South Africa)
QuickBooks Payroll is available as an add-on and supports local PAYE and UIF, making it a strong option for companies with staff.
4. Good mobile app
QuickBooks’ mobile experience is well-reviewed and allows on-the-go invoicing, receipt capture, and real-time access to financial data.
What Could Be Better
1. Clunky interface compared to Xero
While functional, the QuickBooks interface feels more “corporate” and less modern. Some new users report that the learning curve is steeper, especially without a bookkeeping background.
2. Add-ons can increase total cost
Like many platforms, QuickBooks prices its best features—multi-currency, inventory, project tracking—into higher plans or separate modules. You’ll need to price carefully if you're on a budget.
3. Occasional syncing issues
Some users report slow syncing with certain SA banks or temporary delays in automated feeds. While not common, it’s a risk if you rely heavily on automation.
Ideal Users
Businesses that want a stable, full-featured system with payroll
Companies that already work with a bookkeeper or accountant
Firms that want a more traditional structure for audit readiness
Not Ideal For
Freelancers or micro businesses looking for simplicity or free options
Automation-first or ecommerce businesses with complex tool stacks
Founders who want a fast, intuitive interface over structured workflows
QuickBooks is one of the most recognized names in global accounting software. Its online version brings powerful features to South African small businesses—particularly those that want structure, reliability, and a system trusted by accountants and bookkeepers across the board.
Zoho Books — In-Depth Review
Zoho Books is the quiet powerhouse in this lineup. While not as well-known in South Africa as Sage or QuickBooks, it consistently punches above its weight in terms of features, automation, and pricing. Part of the broader Zoho ecosystem—which includes CRM, email, HR, and project tools—Zoho Books is ideal for founders who want to run their business in one unified platform.
What makes Zoho particularly attractive is how much it offers even at the free or entry-level tier. If your business is still small but you want to build on a scalable system, Zoho can take you surprisingly far before you ever need to pay more.
What We Like
1. Exceptional value for money
Zoho offers a free plan for businesses under a certain revenue threshold (typically $50k USD annually), and its paid plans are often cheaper than the competition while offering more automation out of the box.
2. Built-in automation
Recurring invoices, automatic payment reminders, workflow rules, custom email alerts—it’s all there, and much of it doesn’t require extra apps or upgrades.
3. Strong inventory and project tools
Unlike other entry-level tools, Zoho includes inventory management, time tracking, and even client portals in its lower plans. Great for product-based or service-based businesses.
4. Unified ecosystem
If you’re using Zoho CRM, Zoho Payroll (India only for now), or other Zoho apps, the integration is seamless. It’s all built to work together, which saves setup time and reduces errors.
What Could Be Better
1. Not built for South Africa (yet)
Zoho Books doesn’t natively support South African VAT submissions or integrate directly with SARS. You can configure VAT manually, but it takes more work than local-first platforms like Sage.
2. No local payroll
There’s no native payroll module for South African users, so you’ll need to handle this externally or use a local payroll provider.
3. Interface is powerful, but not always intuitive
With great power comes a slightly steeper learning curve. The system offers a lot, but some users find the menu structure a bit complex at first.
4. Support can be hit-or-miss
While support is available, it’s global—response times vary, and South African-specific issues may not always be well understood by the helpdesk.
Ideal Users
- Startups, freelancers, and solopreneurs who want a full-featured free or low-cost option
- Product-based businesses with inventory and recurring billing needs
- Founders who want to grow into a full suite of Zoho business tools
Not Ideal For
- Businesses that require local tax automation or payroll support
- Firms that want SARS-ready reporting without manual configuration
- Non-technical users who prefer ultra-simple, guided setup
Best Software for Different Business Types
No single accounting platform fits everyone. Your choice should depend on the type of business you run, your budget, your team’s technical ability, and whether you work alone or with an accountant. Below, we break down which software suits which kind of business best—based on real-world use, feature sets, and local support.
For Solo Entrepreneurs or Side Hustles
Recommended: Sage Business Cloud Accounting or Zoho Books (Free Plan)
If you’re running a small operation—consulting, freelancing, or online retail—Sage offers a clean, simple interface that’s easy to manage without an accounting degree. It’s also the most cost-effective for basic invoicing, expenses, and VAT tracking.
Zoho Books is also a good option for those under the free-tier revenue cap, but it requires more setup and has no SARS alignment.
For Service-Based Businesses or Agencies
Recommended: Xero
Xero excels in automation, recurring billing, project tracking, and integrations with CRM, payment gateways, and time tracking tools. If your business is tech-savvy and needs flexibility, it’s a smart choice.
Sage also works here if your needs are simpler and you prefer local support.
For Retail, Inventory, or Light Manufacturing
Recommended: QuickBooks Online or Zoho Books
Both offer decent inventory and quoting systems. QuickBooks is more structured and robust, while Zoho is surprisingly capable at a lower price point.
Sage can handle inventory but only on higher-tier plans, so it may not be cost-effective here unless you're already in the ecosystem.
For Startups on a Tight Budget
Recommended: Sage Business Cloud Accounting
Sage gives you everything you need to stay compliant and track your finances—without bloating your cost base. Its low entry price and local focus make it the most accessible option for South African startups.
Zoho’s free plan may be tempting, but it lacks direct SARS support and can be overwhelming to set up if you’re not already technical.
For Founders Who Want to “Set and Forget”
Recommended: Xero
If you’re the kind of business owner who doesn’t want to touch spreadsheets or receipts ever again, Xero’s automation features and clean mobile experience make it ideal. Pair it with a good accountant, and it’ll mostly run in the background.
Sage, however, is still easier to hand over to a local bookkeeper and may be more appropriate for less tech-savvy founders.
For Accountant-Supported SMEs
Recommended: Sage Business Cloud Accounting
If you’re working closely with an accountant or want something your staff can learn quickly, Sage is often the smoothest option. It’s already widely used by South African professionals, integrates with Sage Payroll, and keeps your reporting compliant.
Common Complaints & User Feedback
To give this guide real-world credibility, we've analysed independent user reviews from platforms like Capterra, TrustRadius, GetApp, G2 and Hellopeter. Below is a summary of the most frequently reported positives and concerns—particularly from South African small business users.
Sage Business Cloud Accounting
What users like
- Described as "user friendly" and "very informative" by verified users on G2, praising its ease of use in daily activity and practical reporting functions.
- Endorsed on GetApp South Africa as “easy to set up and learn,” and a good fit for new businesses, especially between Sage Cloud and Sage 50 Cloud users.
- A Capterra reviewer echoed its reliability: “You can log in from anywhere… invoicing is simple… bank statement allocation makes processing easy”.
Common complaints
- Customers frequently report occasional downtime or inaccessible service, causing frustration during live transactions.
- Others mention bank feed inconsistencies, as some SA banks may not sync smoothly.
- Customer support gets mixed reviews—some users find responses unhelpful or slow to resolve complex issues.
Xero
What users like
- South African Capterra reviews rate Xero as “excellent small business accounting software,” calling it efficient for invoices, reconciliation, and easy to navigate—even for teams without accounting experience.
- GetApp reviewers highlight its intuitive interface, constant updates, and visual design—many users said they haven’t found any deal-breaking issues.
- Software Advice gives Xero strong ratings across ease of use, functionality, and value (around 4.3–4.4 out of 5).
Common complaints
- Multiple reviewers mention that customer service can be slow or inconsistent—especially for more complex issues.
- Pricing concerns are common; basic features like payroll or inventory require higher-tier plans, and some users feel year‑over‑year price increases erode value.
- Several users, including Reddit commenters, describe Xero as overly complex for solo small business owners, citing difficulty navigating the full feature set and dissatisfaction with support.
Summary Table
| Platform | Common Praise | Common Criticisms |
|---|---|---|
| Sage | Simple, familiar interface; reliable VAT & bank feed processing; solid for local SMEs | Occasional downtime; bank feed gaps; mixed support quality |
| Xero | Clean UI, strong automation, widespread integrations, frequent updates | Price increases; confusing tier structure; support can be slow; steep learning curve for some users |
Pricing Breakdown (South Africa)
When it comes to choosing accounting software, cost is more than just a monthly subscription—it’s what you get for what you pay. Below is a breakdown of current pricing for each platform, focused on the South African market.
We’ve included base-level pricing, feature availability by plan, and any relevant limitations to help you compare total value, not just sticker price.
Sage Business Cloud Accounting — Best value for simple SA compliance
Start Plan: R185/month (ex VAT)
Invoicing, quotes, bank feeds, VAT reporting, basic reports
Standard Plan: R345/month
Adds cash flow forecasting, supplier management, inventory tracking, and more
Payroll Add-On: Available via Sage Payroll SA (from ±R70/employee)
Free Trial: 30 days
Key Benefit: You get all the basics for a fully functional small business system under R200/month—great for startups and service providers.
Xero — Powerful but comes at a premium
Starter Plan: R400/month (approx.)
Limited to 20 invoices + 5 bills
Standard Plan: R650/month
Unlimited invoices and bills, no payroll
Premium Plan: R850–R1000/month
Adds multi-currency, expense claims, and advanced reporting
Payroll: Not available natively in SA (requires third-party tool)
Free Trial: 30 days
Key Drawback: Essential features like multi-currency and expense claims are locked behind higher plans, making it harder to justify for lean startups.
QuickBooks Online — Middle-ground option with strong features
Simple Start: R270/month
Invoicing, bank feeds, reporting
Essentials: R430/month
Adds multi-user access, bills, time tracking
Plus Plan: R550/month
Adds inventory, project tracking, recurring transactions
Payroll Add-On: Available through QuickPayroll SA
Free Trial: 30 days
Note: Often runs discounts for the first 3 months, but renews at full price after that.
Zoho Books — High value at low cost, but watch for local gaps
Free Plan: R0/month
Available for businesses under ~$50,000 USD annual revenue
Standard Plan: R190/month
Includes invoicing, expense tracking, projects, reporting
Professional Plan: R330/month
Adds inventory, workflow rules, custom fields
No SA Payroll: Must use external solution
Free Trial: 14 days
Caveat: Excellent features at this price, but lacks SARS-ready tax outputs and full local support.
Comparative Summary
| Platform | Entry Plan (R/month) | Inventory Included | SA Payroll | SARS Alignment | Ideal For |
|---|---|---|---|---|---|
| Sage | R185 | Standard plan only | Yes | Yes | Local SMEs, freelancers, startups |
| Xero | R400 | Premium only | No | Manual export | Automation-focused service businesses |
| QuickBooks | R270 | Plus plan only | Yes | Basic | Bookkeeper-supported businesses |
| Zoho | R0 / R190 | Early plans | No | Manual setup | Cost-sensitive founders |
In terms of raw value, Sage is the clear winner for South African small businesses who want simplicity, local tax compliance, and affordability—especially when paired with human support from an experienced accountant or advisor.
Mobile Apps, Support & Local Compliance
While feature lists look great on paper, what really matters is how well these tools fit into your real business day. Can you send invoices from your phone? Will the support team understand South African VAT? And when SARS asks for records, will your system be ready?
This section breaks down how each platform performs where it counts—on your phone, in your inbox, and with your accountant.
Mobile App Performance
Sage Business Cloud Accounting
Mobile app is functional and easy to use for invoicing, expense capture, and checking balances.
App is locally focused and ties into features South African users care about (VAT, customer details, etc.).
Reliable, though not flashy.
Xero
One of the best mobile apps on the market.
Clean interface, fast performance, full dashboard access, and great for on-the-go billing or reconciliation.
Lacks local tax prompts, but otherwise a smooth experience.
QuickBooks Online
Strong mobile support for capturing receipts, sending invoices, and managing basic transactions.
Slightly clunkier interface than Xero, but more structured for traditional workflows.
Zoho Books
Surprisingly powerful mobile experience given the price.
You can manage customers, send quotes, issue invoices, and track time and expenses—all from your phone.
Some users report a learning curve navigating features.
Local Support & Training
Sage
Offers local phone and email support during South African business hours.
Many accountants and bookkeepers already familiar with the system.
Training and help resources available through Sage University and local consultants.
Xero
Support is via email only, and often takes 24–48 hours.
Growing community of Xero-certified South African advisors.
Extensive online help documentation and video tutorials.
QuickBooks
Offers live chat and ticket support.
Some South African accountants familiar with the platform, but not as common as Sage.
Training available through global resources.
Zoho
Support is global, not local—expect delays during SA hours.
Help docs are extensive, but some issues (like SARS VAT setup) are not covered.
Limited community presence in SA, though growing slowly.
SARS & CIPC Compliance
Sage
Built for South African businesses. VAT reporting, customer statements, and audit trails are local-friendly.
Supports multiple tax types, SARS formats, and integrates with Sage Payroll SA.
Ideal for CIPC-ready monthly management accounts.
Xero
Can be configured for SA VAT, but requires manual work or accountant guidance.
No native SARS integration.
Suitable for SARS submissions with exported reports, but not plug-and-play.
QuickBooks
Supports basic VAT, but less robust than Sage.
Not tightly aligned to SARS formats.
CIPC reports may require adjustments from your accountant.
Zoho
VAT needs to be set up manually—no preloaded SA tax structure.
Doesn’t generate SARS-specific outputs.
May require export to Excel and manual formatting during tax time.
Verdict
If local compliance, mobile usability, and hands-on support are important to you—as they are for most South African SMEs—Sage takes the lead. Xero wins on user experience, but it comes at a higher cost and lacks built-in local knowledge. Zoho delivers impressive mobile tools at a low price, but support and SARS alignment are limited.
Recommendations by Use Case
With so many options on the table, the right accounting software for your business comes down to what you actually need—and what you don’t. Below are clear, practical recommendations based on common business scenarios in South Africa.
You're a startup or freelancer on a budget
Go with:
Sage Business Cloud Accounting
Sage gives you everything you need (invoicing, VAT, cash flow tracking) at one of the lowest price points in the market—and it’s built for South African compliance. You can add payroll later as you grow, and most local bookkeepers already know it.
You want simplicity and local support
Go with:
Sage Business Cloud Accounting
Sage’s layout is straightforward, the reports make sense to South African accountants, and you can get help during local hours. No global ticket queues, no confusing tax setups.
You're building a service-based business and want automation
Go with:
Xero
If you value automation, integrations, and visual dashboards, Xero shines. It’s ideal for consultants, agencies, creatives, and remote teams who want their system to work in the background.
You want a full-featured platform with payroll and projects
Go with:
QuickBooks Online
QuickBooks balances structure and flexibility. It’s great if you need to manage inventory, track projects, and add payroll as you scale. A bit more rigid than Xero, but well-suited to more traditional business models.
You're tech-savvy and want maximum value
Go with:
Zoho Books
If you’re willing to do some initial setup and don’t need tight SARS alignment, Zoho Books offers incredible bang for your buck. Ideal for entrepreneurs building inside the Zoho ecosystem or who want a free/low-cost solution with powerful automation.
You’re working with a South African accountant or bookkeeper
Go with:
Sage Business Cloud Accounting
Sage is still the most widely supported cloud platform among South African practitioners. If you want frictionless collaboration, this is your best bet.
Final Thought
If you’re not sure which to pick, start with Sage. It covers the essentials, fits the local market, and keeps your setup simple. You can always migrate to a more advanced platform later—but starting with something too complex or foreign could cost you time, money, and unnecessary admin.
Conclusion: Which One Should You Choose?
Choosing accounting software isn’t just a tech decision—it’s a business decision. The tool you pick will shape how you manage money, stay compliant, collaborate with your accountant, and scale your operations. That’s why it pays to choose carefully.
After comparing the top platforms available in South Africa, here’s the bottom line:
Sage Business Cloud Accounting is our top recommendation for most small businesses. It’s affordable, reliable, built for South African compliance, and easy to use—even if you’re not an accountant. If you want something that “just works,” Sage is the one to beat.
Xero is best for cloud-savvy founders who value automation and aesthetics. It’s a great choice if you’re building a modern, digital-first business and don’t mind paying more for power and polish.
QuickBooks Online sits in the middle. It offers a broad feature set and solid payroll options, but it’s better suited to businesses with existing accounting support or more traditional operations.
Zoho Books is ideal for budget-conscious startups who don’t mind doing some of the heavy lifting themselves. It offers an impressive set of features for the price—but lacks native SA tax support, which could become a problem as you grow.
If you’re still unsure, start simple. You can always upgrade later. But starting with a system that’s too complex—or not aligned with local rules—can cost you more than just money. It can cost you clarity, time, and peace of mind.
Need Help Setting It Up?
If you want expert guidance, or you’d prefer to focus on your business while someone else gets your accounting systems sorted, we can help. Our team works with both Sage and Xero, and we’ll recommend what’s best for your business stage—not just what’s trendy.
Frequently Asked Questions (FAQs)
What is the best accounting software for small businesses in South Africa?
For most South African SMEs, Sage Business Cloud Accounting is the best choice. It’s affordable, easy to use, and fully aligned with local tax laws, including VAT. It’s also widely supported by South African accountants and bookkeepers.
Is Xero better than Sage in South Africa?
Xero offers more automation and integrations, but it lacks native South African tax compliance features and local support. Sage is better suited to local businesses who want simplicity and SARS-ready reporting without extra setup.
Which accounting software is cheapest for startups in South Africa?
Zoho Books offers a free plan, but it requires manual VAT setup. Sage’s entry-level plan (R185/month) is the most cost-effective fully compliant solution for new businesses that want to stay SARS-aligned from day one.
Can I use accounting software to submit VAT to SARS?
Yes—with Sage, you can easily generate VAT reports in the correct format for SARS submissions. Other tools like Xero and QuickBooks require exporting data and using third-party tools or manual submission.
Which accounting software integrates with South African banks?
Sage, Xero, and QuickBooks all offer bank feeds that support major South African banks like FNB, Standard Bank, ABSA, and Nedbank. However, users occasionally report syncing delays or errors—so it's important to test your bank connection early.
Does Xero support payroll in South Africa?
No, Xero does not offer a native South African payroll system. You’ll need to use a third-party integration like SimplePay or PaySpace if you want to run payroll alongside Xero.
Can I switch from Pastel to Sage Business Cloud?
Yes. Sage offers migration support for Pastel Partner or Xpress users looking to move to the cloud. It’s a natural upgrade path and can be handled with minimal disruption if managed by your accountant or a Sage consultant.
Do I need an accountant if I use accounting software?
Not always, but having one helps—especially for VAT returns, payroll, and year-end submissions. The best approach is to use accounting software with accountant access, so you stay in control while still being compliant.
Which software is best if I run an ecommerce store in South Africa?
Xero integrates well with Shopify, WooCommerce, and PayFast, making it a top choice for ecommerce. Zoho is also strong in this space, especially if you're using the full Zoho suite. Sage is less integration-focused, but can still work with the right setup.
What if I outgrow my current software?
All four platforms—Sage, Xero, QuickBooks, and Zoho—are scalable to a point. If you’re hitting limits (users, inventory, reporting), consider moving to mid-market tools like Sage Intacct or QuickBooks Advanced, or integrating your current platform with more advanced systems.
Sources + Review Methodology
This guide was created to serve as a definitive, up-to-date reference for South African small business owners choosing accounting software in 2025. Our goal is not just to review features, but to recommend what works in the real world—for local entrepreneurs, startups, and growing SMEs.
How We Researched
Our review process combined:
1. Hands-On Use
Our team actively uses and supports both Sage and Xero in real business environments. We’ve implemented these tools for clients across industries and know their strengths and limitations from daily use.
2. Verified User Reviews
We analysed verified customer feedback from platforms including:
3. Pricing and Feature Audits
We reviewed each platform’s South African pricing and plan structures (as of July 2025), including trials, add-ons, and support options. We also tested available bank feeds, mobile apps, and reporting tools.
4. SARS + CIPC Alignment
We evaluated how each tool handles VAT, PAYE, and basic reporting in line with SARS expectations, and whether they offer practical outputs for CIPC-ready financials.
5. Local Expertise
Our preference for Sage is based on its proven performance in South African conditions—especially when paired with human support from a qualified accountant. However, we reviewed all tools fairly based on how they perform in practical use, not just on paper.
Last Updated
This article was last reviewed and updated on 27 July 2025. Pricing, features, and local availability may change—please check with each provider or contact us directly for the latest setup advice.