XERO announce Payroll Integration at Xerocon 2015 – Sage on the defensive?

Sage versus XERO

We’re bringing some fresh ideas and innovation to payroll, which hasn’t really seen much interest in the last ten or 15 years,

Xero managing director Gary Turner  told Accountancy Age.

“The problem is legislation changes so frequently that most payroll software companies can just about keep up with that. The prospect of anyone innovating in payroll in the last ten years has been pretty remote and so a lot of it today is quite tired and it feels like 2005. We’re looking to do what we’ve done for bookkeeping for that sector.”

Sage, the UKs largest business software company has hit back at this statement from XERO, suggesting that a wealth of innovations and fresh ideas have been forthcoming over the past few years.

XERO Payroll Review

Rather powerfully, the XERO innovation allows the real-time communication to HMRC, with submissions automatically handled with each PAYROLL, along with PAYE, NI contributions and student loan. The latest XERO offering even allows small business owners and employees to schedule time off and view payment information from any device ‘in the cloud’ at any time 24-7.

The absolute power and flexibility awarded by such a system delivered in XERO’s easy to use and intuitive interface, is certainly causing a stir in an otherwise stagnant pool of progress until recently. Could the latest XERO Payroll facility gain further leverage for XERO to take an even bigger slice of the market away from Sage?

Sage has previously been under fire back in 2013, when a software issue saw 5000 clients have end-of-year payroll submissions filed incorrectly.

Accordingly, Lee Perkins (Managing Director of Sage UK) did issue a strong defensive response suggesting that the company is “immensely proud” of it’s record in “enabling hundreds of thousands of UK businesses get to grips with RTI and Auto Enrolment”.

We’re seeing more and more real world user feedback showing a big thumbs up for XERO and it’s increasing services such as Payroll.

Take a look at the Sage versus XERO review below (courtesy of TrustRadius)

Sage versus XERO
Sage versus XERO

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