Small- and medium-sized businesses benefit greatly from implementing Sage accounting software. However, for companies that need more from their software than basic financial reports, a product that delivers expanded functionality and scalability provides the greater value. When comparing smaller solutions like Sage 50 with Sage 100, it is important to determine your business needs, to what extent accounting software will help you and how quickly do you need to implement a new system.
A Sage 50 accounting system is useful for smaller companies that do not expect more than ten users at any given time. For businesses experiencing any sort of growth, the 10-user limit will be inadequate and may incur additional costs from having to utilize extra systems to make up for gaps in capturing data. Sage 100 and Sage 100cloud are appropriate for organizations growing into the mid-market and expanding their operations to accommodate an increased value chain.
Here are three key differences between Sage 50 and Sage 100 that will determine which Sage software solution is right for you:
1. Functionality for Sage 50 vs Sage 100
Sage 50 is designed for a limited number of users and functions; it is a solution made for one organization with one office location and relatively simple business processes. Though Sage50cloud, the latest Sage 50 version, introduces some additional connectivity, it does not offer the same extensive visibility that Sage 100cloud does. Historically, users have encountered issues when interacting with features such as Sage 50 multi-user capabilities, which may cause a loss of functionality that forces you to rely on single user interfaces as a workaround.
Additional pain points include a lack of extensive data capture and processing, which will lead you to rely on manual entry and organization to keep track of all of your transactions after they reach a certain point. Though there are a few integrations that will help expand Sage 50’s functionality as an in-office accounting tool, you will have to compensate with additional solutions for any additional operational roles your business will require.
Sage 100cloud is a true Enterprise Resource Planning (ERP) system that features modules for multiple industrial operations, including manufacturing, distribution, and retail and can be positioned for various vertical sectors. As a fully-equipped ERP solution, it can fulfill functions for both external and internal processes, including purchasing and payroll actions. All of this is in addition to the Sage 100 core accounting software and financial reporting functionality, which exceeds that of native Sage 50 and other off-the-shelf solutions such as Intuit QuickBooks.
2. Scalability of Sage 50 vs Sage 100
Sage 50 features greater scalability than similar off-the-shelf accounting software solutions, however, it only provides value up to a certain extent for both functionality and price. The features of Sage 50 are meant to be used for a limited amount of data and in conjunction with additional programs, such as Microsoft Outlook. Sage 50 modules are not built to host the same type of native performance and end-to-end value chain visibility that Sage 100cloud is designed for.
One of the biggest drawbacks of using Sage 50 for small business accounting processes is that pricing is calculated on a per user level with the expectation of a very finite number of users. This applies to both the maximum total of 10 users per license or subscription for Sage 50cloud, as well as for how many users can interact with the system at a given time. These restrictions prevent you from scaling your Sage 50 solution past a certain level of internal expansion and will diminish its value when your company experiences growth.
Sage 100cloud offers inherent flexibility in how it is scaled to your practices and operational processes, including pricing that is customized to your needs. Being a fully functional ERP system, Sage 100cloud maintains it functionality for up to dozens of users, and multiple personnel can interact with the software simultaneously. Sage 100cloud can accommodate numerous conditions found in your industry and is easily modified to fit within your existing operations.
3. Customization Available for Sage 50 vs Sage 100
Customization is a critical factor for any modern software solution as even if a system delivers extensive out-of-the-box functionality, development and integrations will further position it for your particular pain points. Sage 50’s native functionality is limited to small-scale accounting functions, though it can be integrated with additional Sage solutions that provide expanded financial reporting features. However, these add-ons still will not transform your Sage 50 accounting system into a true enterprise-level solution.
Even the latest Sage 50 upgrade, Sage 50cloud, is limited to relying on external solutions to expand its functionality beyond that of an in-office accounting system. Adding too many third-party integrations without proper customization and development will transform your software into an ad hoc solution that will require extra manual processes to compile all of your data. Sage 100cloud prevents this by including modules with native functionality for a variety of tasks, such as inventory management, payroll and business intelligence.
SWK Technologies can customize your Sage 100cloud solution further with access to the Sage product source code as a top-level Sage Partner for over 30 years. We have implemented Sage 100cloud for businesses within multiple industries and have consulted for and rectified past implementations done by other software providers to allow companies to capture the most value out of their Sage solution. Our expertise allows us to modify your Sage 100cloud accounting software into a true enterprise solution customized for your specific needs.
Upgrade Your Software to Get the Most for Your Business
Sage 50 and Sage 50cloud deliver considerable value to smaller companies that need an affordable off-the-shelf accounting system for only a few users, but it is not built for growing SMBs that require true functionality meant for their industry. Upgrade your software to a true enterprise solution that will empower you to accelerate your operations and enable continuous growth.
Check out this SWK customer success story of a manufacturer that chose Sage 100 over Sage 50 to see how migrating to a true ERP solution can benefit you.