November 24, 2020

Business accounting software comes in many forms.

Sage is a popular option and offers one of the best solutions on the market.

But in choosing the right one for your business, you may have come to a fork in the road.

The main options are Sage 50cloud and Sage 200cloud.

So, what’s the difference and which one should you go for?

We’ve got everything you need to know here.


We talk about Sage a fair bit but we can sometimes forget that people might not have a clue what we’re talking about.

Sage is a UK based FTSE 100 company which serves more than 800,000 businesses in the UK and Ireland alone, including more than a third of the other FTSE 100 companies.

Their industry leading software helps businesses streamline their accounting and other key business processes.

Their main offering is covered by Sage 50cloud and Sage 200cloud which we’ll be covering in this blog.


Now, this isn’t a comparison in the traditional sense. It’s not Sage 50 vs Sage 200.

The first thing you need to know, is that whilst one has more features than the other, it’s not necessarily better for you. They are just different solutions for different types of businesses.

It’s like the difference between a Ferrari and a VW Golf. One’s more powerful than the other but not everyone needs a Ferrari.

For some, the Golf is more than adequate. The comparisons between Sage and Ferraris end there, however.

The main difference is indicated by the names – they’re not just arbitrary numbers.

The 50 and 200 give a good indication of the size of business (in no. of employees) that each one is aimed at.

The ‘cloud’ on the end, unsurprisingly indicates that they are both integrated with the cloud. That’s a given with both of them and means you can access it from any device, wherever you are.

Another thing that’s a given with both is that they both run seamlessly alongside the Microsoft 365 suite of software.

Let’s look at them in more detail.

Sage 50cloud

Sage 50cloud is a complete accounting package for smaller and start-up businesses.

If you’ve got 10 – 50 employees this is ideal. You can do the accounting and invoicing you need to do and keep track of cash flow and forecasts. You can get some industry specific features but functionality is fairly limited.

That said, if you’re a small business that’s probably all you need. You only have one supply and sales channel and there won’t be that many people in your accounting team that need access to the software.

If you want a fast, reliable cloud-based software that provides you with the essentials you need as a smaller business, this is ideal.


What’s ‘under-the-hood’?

In Sage 50cloud you get:

  • Up to 20 concurrent users.
  • 1 Tier Nominal Structure – This allows you to group and reconcile sales from one department.
  • Basic accounting functionality.
  • Cash Flow Monitoring.
  • Stock Codes allocated to a single location.
  • No stock traceability.
  • Some industry-niche functions.

Now, if you’re a smaller business and Sage 50cloud is working for you just fine, but you want some extra features that don’t come with it, you can make it work.

There are a number of really useful third-party add-ons that we recommend considering. In fact, we’ve talked about them before.

Check out our posts on making documentation electronic, managing cash flow well and better business expenses management.

Sage 200cloud

Sage 200cloud is for those medium sized businesses of up to 200 employees. If you’ve got a longer list of customers, multiple sales channels and in some cases multiple sites, this gives you a greater level of control over your finances.

Many businesses will find the 50cloud version limiting when they hit that ceiling of 50 employees. Some will be able to carry on but at that point most businesses are thinking about ways they can streamline a lot of their processes.

Sage 200cloud gives them that control. It also has multiple features that are not just about balancing the books but actually growing and scaling the business.


In Sage 200cloud you get:

  • 3 Tier Nominal Structure – If there’s a lot of variation across your company such as different cost centres and different departments, this is covered.
  • Management for complex business processes.
  • Reporting capabilities.
  • Integrated CRM.
  • Serial and batch traceability.
  • Lots of analytical features.
  • Financial period control.

And so much more.

The reality is if you’re a growing business this is the one for you. And you don’t necessarily have to wait until your current accountancy software isn’t fit for purpose.

If you want access to the full range of features available, why not try it now.


So, it should be fairly clear, but your choice of Sage’s flagship software, ultimately comes down to the size and ambition of your business.

Not every business wants to scale and needs a software that can deal with a high volume of processes. In that case Sage 50cloud probably does the job. It’s also great for businesses just starting out.

But if you do grow, eventually you will probably find its features limiting. It’s at this point that you’ll probably want to make the jump to 200cloud.

We’re a Sage specialist and reseller so will be able to answer any questions you have about the software.

If you want more info about Sage 200cloud for your business, click here.

For Sage 50cloud, click here

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