What to Look For
For South African businesses, there are a few non-negotiables:
- VAT handling with correct rates (15%) and VAT201 reports
- Bank feeds with SA banks (FNB, Standard Bank, Nedbank, Absa, Capitec)
- Multi-currency if you invoice internationally
- Payroll with UIF, PAYE, and SDL calculations (or good integration with payroll software)
- Cloud-based for access anywhere and automatic backups
Detailed Comparison
Sage Business Cloud
SA FocusedBest for: Established SA businesses needing payroll
From R299/month
Pros
- +Built for South Africa - SARS eFiling integration
- +Comprehensive payroll with UIF, PAYE, SDL
- +Local support team
- +Bank feeds with major SA banks
Cons
- -Interface can feel dated
- -Higher learning curve
- -More expensive than alternatives
Xero
SA FocusedBest for: Growing businesses wanting modern UX
From R375/month
Pros
- +Beautiful, intuitive interface
- +Excellent SA bank feeds
- +Strong app ecosystem (200+ integrations)
- +Great for accountant collaboration
Cons
- -Payroll requires add-on (SimplePay)
- -Limited inventory for manufacturers
- -Support is primarily online
QuickBooks Online
SA FocusedBest for: Freelancers and micro-businesses
From R250/month
Pros
- +Most affordable entry point
- +SA-localized with VAT support
- +Simple invoicing and expenses
- +Good mobile app
Cons
- -Fewer SA-specific features than Sage
- -Basic reporting on lower tiers
- -Payroll add-on required
FreshBooks
Best for: Service-based freelancers and consultants
From $17/month (~R320)
Pros
- +Best-in-class invoicing
- +Excellent time tracking
- +Very easy to learn
- +Great for client communication
Cons
- -Not SA-localized (USD pricing)
- -No payroll
- -Basic inventory management
- -VAT handling less robust
Frequently Asked Questions
Do I need SARS-compliant software?
Yes, if you're VAT registered. Your software should handle VAT calculations, produce VAT201 reports, and ideally integrate with SARS eFiling. Sage and Xero are the best options for this.
Can I switch accounting software mid-year?
Yes, but it's easier at year-end. Most software can import your opening balances. Just ensure you export all data from your current system first.
Do I need payroll built-in?
Not necessarily. Many SA businesses use SimplePay or PaySpace alongside Xero or QuickBooks. However, Sage's built-in payroll is excellent if you want everything in one place.
Which is best for working with my accountant?
Xero leads here with its accountant portal and real-time collaboration. Most SA accountants are familiar with all major platforms though.
The Bottom Line
For most South African SMEs, Xero or Sage are the safest choices. Xero wins on user experience and modern features, while Sage wins on built-in payroll and SA-specific compliance features.
If you're a freelancer or consultant primarily sending invoices, FreshBooksoffers the smoothest experience, though you'll pay in USD.
QuickBooks is a solid middle-ground - affordable, capable, and SA-localized, though with fewer advanced features than the others.