Sage 50cloud Review: Blending Traditional Accounting with Cloud Efficiency

Most SMB owners would agree that managing finances with traditional desktop software can be cumbersome.

However, solutions like Sage 50cloud aim to blend the familiarity of traditional accounting with the accessibility of the cloud.

In this Sage 50cloud review, we'll explore its core accounting capabilities, inventory features, reporting tools, security protocols, integration options, pricing, and more to help you determine if it's the right fit for your SMB's financial management needs.

Introduction to Sage 50cloud

Sage 50cloud is a popular cloud-based accounting and financial management software designed for small and medium-sized businesses (SMBs). It combines the functionality of traditional desktop accounting software with the accessibility and collaboration benefits of the cloud.

Overview of Sage 50cloud

Sage 50cloud offers core accounting capabilities such as managing income and expenses, tracking accounts receivable and payable, processing payroll, and creating financial statements. It is tailored for SMBs across industries like retail, distribution, manufacturing, healthcare, accounting firms, and more. With anytime, anywhere access via the cloud, real-time collaboration, and integration with other business applications, Sage 50cloud aims to streamline financial operations for SMBs.

Key Features and Tools

Some key features and tools Sage 50cloud provides for financial management include:

Cloud-based access from any device and location
Real-time, multi-user collaboration
Automated accounts payable and bank reconciliation
Robust reporting with custom report builder
Inventory management and job costing
Seamless integration with other business systems
Scalable solution that grows with your business

By centralizing financial data and processes in the cloud, Sage 50cloud gives SMBs enhanced oversight into the health of their business.

Benefits for SMBs

Using Sage 50cloud offers SMBs several advantages such as:

Reduced accounting costs through automation of tasks
Improved financial visibility in real-time through cloud access
Enhanced collaboration between accounting and other teams
More efficient regulatory compliance with audit trail tracking
Scalable platform that adapts based on business changes
Anytime, anywhere mobile access to data and tools

With features purpose-built for SMBs, Sage 50cloud enables better financial management, informed decision making, and growth.

Core Accounting Capabilities

Sage 50cloud offers robust core accounting capabilities to manage key financial processes.

General Ledger

The general ledger module provides tools to:

Set up and manage nominal ledger accounts and chart of accounts
Record transactions through manual journal entries or automated feeds
Generate trial balances, profit and loss statements, and balance sheets
Streamline period-end closing processes

With Sage 50cloud's general ledger, businesses can closely monitor financial performance with real-time reporting and analytics. The system automates routine accounting tasks, freeing up time for strategic planning.

Accounts Receivable

Managing accounts receivable is streamlined in Sage 50cloud through features like:

Customer account management
Automated invoice generation
Flexible payment receipt and allocation
Collections workflow and credit control
Customer statements and aging reports

By centralizing AR data, Sage 50cloud makes it simple to bill customers, collect payments faster, and minimize bad debts. Users also gain visibility into receivables aging and customer credit status.

Accounts Payable

Key capabilities for managing vendor bills and payments include:

Centralized AP workflow
Bill and expense entry
Payment processing and check printing
1099 tax form reporting
Vendor analysis reporting

Automating payables eliminates manual processes while enhancing visibility and control. Users can optimize cash flow, capture early payment discounts, and make data-driven spending decisions. Integrations with popular small business credit cards also simplify expense tracking.

With its robust accounting functionality and cloud accessibility, Sage 50cloud empowers growing businesses to manage finances more efficiently. The system blends the stability of traditional accounting software with the flexibility of the cloud.

Inventory and Order Management

Inventory Control

Sage 50cloud provides robust inventory management capabilities to help businesses track stock levels, maintain optimal inventory, and reduce carrying costs. Key features include:

Real-time visibility into inventory quantities across multiple warehouses and locations
Automated reordering based on customizable minimum/maximum levels
Serialized inventory tracking for high-value goods
Batch and lot tracking for manufactured items
Landed cost tracking to factor in freight, duties, and other fees

With Sage 50cloud, businesses can closely monitor their inventory to minimize waste, improve cash flow, and ensure adequate stock is on hand to fulfill orders and meet customer demand.

Sales Orders

Streamlining order fulfillment is critical for delivering exceptional customer experiences. Sage 50cloud equips businesses with sales order processing tools such as:

Flexible invoice templates to match company branding
Customer-specific pricing levels and discounts
Integrated payment processing via popular gateways
Partial order shipments and backorder tracking
Automated sales tax calculations

By automating and customizing the sales order workflow, companies can fulfill and invoice customer orders more efficiently. This accelerates cash flow while also strengthening customer relationships.

Purchase Orders

Sage 50cloud gives businesses command over their spending by automating and tracking all purchases made. Key purchasing capabilities include:

Multi-level approval workflows to control expenditures
Enforcement of purchase order policies
Comprehensive vendor database with payment terms
Landed cost tracking and analytics
Three-way invoice matching for accuracy
Budgetary controls and reporting

With robust PO tools, companies gain visibility into expenditures to make smarter purchasing decisions. Automation also minimizes manual tasks so staff can focus on value-added activities.

Reporting and Analytics

Sage 50cloud comes with several built-in reporting tools and customization options to help businesses gain valuable insights into their finances.

Standard Reports

Sage 50cloud includes over 80 standard financial reports out-of-the-box, covering areas like:

Profit and loss statements
Balance sheets
Accounts receivable and payable aging reports
Sales tax reports
Inventory reports

These pre-built reports require no set up and allow users to quickly analyze common metrics for cash flow management, identifying growth opportunities, monitoring accounts, tracking inventory, and more.

Report Customization

Users can customize the standard reports in several ways:

Add or remove columns to fit specific reporting needs
Change report filters to show more granular breakdowns (e.g. by customer, product, date range)
Alter report formatting like fonts, colors, and logos
Schedule reports to run and export automatically

In addition, Sage 50cloud offers a custom reporting wizard to build new reports from scratch for specialized reporting. Custom reports can combine data from multiple areas into one consolidated report.

Dashboards and KPIs

To help managers zero in on critical metrics for decision making, Sage 50cloud provides personalized dashboards. These dashboards allow you to:

Select from over 80 out-of-the-box KPIs
Set KPI targets and benchmarks
Monitor KPI performance over custom date ranges
Receive alerts when KPIs fall out of defined ranges

Common KPIs relate to financial metrics (revenue, expenses, profitability), customer metrics (new customers, sales by customer) inventory metrics (stock levels, inventory turnover rate) and employee metrics (sales per employee).

With the ability to track KPIs specific to your business and receive alerts, Sage 50cloud empowers managers to stay on top of critical numbers and make data-driven decisions.

Data and System Security

Sage 50cloud prioritizes data and system security through various access controls, encryption methods, and compliance certifications.

Access Management

Sage 50cloud implements role-based access control policies to restrict user permissions. Administrators can configure granular settings to limit employee access to sensitive financial data and core system functions. Common access roles include:

View-only: Allows users to view reports and transactions without editing capabilities. Useful for staff who only need to reference data.
Data entry: Permits creation and editing of transactions, bills, invoices, etc. Applicable to bookkeepers.
Accounting admin: Provides full access to accounting features like reconciling accounts, modifying charts of accounts, and running reports. Reserved for accountants and financial controllers.
System admin: Highest level of access to manage user roles, system settings, data imports, and API integrations. Designated for IT staff and select executives.

These predefined roles simplify access management as the business scales. Admins can also create customized roles to match specific team responsibilities.

Data Encryption

All Sage 50cloud data is encrypted in transit and at rest using 256-bit AES encryption. This business-grade standard prevents external parties from accessing confidential company and customer information.

Localized encryption keys further secure data by ensuring it can only be accessed on authorized devices. Sage also employs strict physical security and cybersecurity protocols to protect servers and data centers against unauthorized access.

Compliance Standards

Sage maintains several regulatory certifications that validate its internal controls, security posture, and privacy policies:

SOC 1/SSAE 18: Attests to financial reporting controls and data processing integrity. Important for public financial compliance.
SOC 2: Confirms security, availability, processing, and confidentiality controls based on Trust Services Criteria.
ISO 27001: Demonstrates comprehensive information security management best practices. High global standard.
GDPR: Complies with EU data protection and privacy regulations around personal data collection and usage.

These certifications offer peace of mind and validate that Sage has undergone independent audits to verify their security and compliance controls meet rigorous standards. Customers can request compliance reports to satisfy their own regulatory requirements.

Sage continues investing in advanced security features like multifactor authentication, automated threat detection, and unified auditing/reporting to ensure customer data remains protected as new risks emerge. The layered controls and emphasis on financial compliance makes Sage 50cloud a trusted choice for secure cloud accounting and financial management.

Cloud Deployment and Integration

Cloud Infrastructure

Sage 50cloud is built on a robust cloud architecture that provides high availability, security, and scalability. It leverages Microsoft Azure's global data center infrastructure to deliver fast performance and built-in redundancy.

Some key aspects of the cloud infrastructure include:

99.9% uptime SLA: With data centers across the globe, Sage 50cloud offers maximum reliability and continuous operations.
Regular updates: Software updates are delivered automatically without any system downtime required. This keeps the software up-to-date with the latest features and security enhancements.
Secure data encryption: All customer data is encrypted in transit and at rest using AES-256 bit encryption. This prevents unauthorized access to sensitive financial information.
Role-based access control: User permissions and access can be precisely configured based on roles like Accountant, Bookkeeper, Sales Rep etc. This improves security and accountability.

By leveraging the cloud, Sage 50cloud combines the accessibility of the web with industrial-grade stability, performance, and protection.

API and Extensibility

Sage 50cloud offers a web API that enables seamless integration with hundreds of third-party applications. The API allows external programs to access Sage 50cloud data and functionality programmatically.

Some ways the web API facilitates customizations and connectivity include:

Automated data exchange: Sync Sage 50cloud data like customers, products, invoices etc. with other business systems automatically in real-time.
Custom reporting: Build custom reports or dashboards using Sage 50 data as required for tailored business insights.
Workflow automation: Streamline repetitive tasks like invoice generation, customer reminders etc. by connecting them to triggers in Sage 50cloud.
Integrated apps: Embed third-party apps directly within Sage 50cloud for a seamless user experience via single sign-on.

With comprehensive documentation and sample code provided, Sage 50cloud's API enables developers to tap into Sage 50cloud's capabilities for deep integrations tailored to specific business needs.

3rd Party Integrations

Sage Marketplace offers over 200 apps that integrate seamlessly with Sage 50cloud to add functionality ranging from payroll automation to warehouse management. Some popular apps include:

Bill.com: Automate bill payment workflow including bill capture, approval routing, and cheque or ACH payments.
Expensify: Streamline corporate expense reporting with automated mileage tracking, receipt scanning, and approvals.
ShipStation: Easily manage multi-channel ecommerce order fulfillment with over 90 shipping integrations.
Paya: Handle payroll, taxes, payments and filings for W2 employees and 1099 contractors.

The apps integrate tightly using Sage 50cloud's API for a unified user experience. This allows businesses to build a customized technology stack tailored to their unique industry, location, and compliance needs on top of a solid Sage 50cloud foundation.

Pricing Options

Sage 50cloud offers three main pricing plans to meet the needs of different business sizes and budgets:

Plan Options

Pro Plan: Best for 1-2 users, includes core accounting features like invoicing, expense management, reporting, and more. Priced at $25 per month.
Premium Plan: Adds more users, advanced customization, and integrations. Best for growing businesses with 3-10 employees. Priced at $40 per month.
Quantum Plan: Top-tier plan with unlimited users, advanced inventory, manufacturing, and API features. Best for larger enterprises. Priced at custom quote.

All plans include unlimited customer support and free access to Sage Drive cloud storage. Higher plans have more robust features, customization, and scalability.

User Licensing

Sage 50cloud uses two licensing models:

Named User: Specific employees are assigned access. Simple but less flexible.
Concurrent User: Shared licenses that multiple employees can utilize. More complex but very flexible.

Concurrent licensing costs more upfront but allows businesses to scale teams efficiently. For small teams, named user plans tend to be more affordable.

Additional Costs

Other fees to consider with Sage 50cloud:

Onboarding & Training: Optional professional setup and training available for $300-$500.
Add-Ons: Additional integrations and services available for purchase if needed. Typical add-ons range from $15-$100 per month.
Volume Discounts: Discounted rates for large deployments with 100+ users.

Sage 50cloud keeps its base plans affordable but offers paid customizations for larger complex needs. Understanding all the variables that influence total licensing costs allows an informed buying decision.

Implementation and Support

Onboarding and Setup

The onboarding and setup process for Sage 50cloud is designed to be quick and easy for new customers. After signing up for an account, you will be assigned a dedicated implementation manager who will walk you through the entire process.

The first step is data migration. Sage 50cloud can import data from over 100 accounting systems, minimizing manual data entry. Your implementation manager will assist in mapping your existing data to Sage 50cloud.

Next, you will receive training tailored to your organization's specific needs and use cases. This can be delivered virtually or onsite. Training covers core product functionality, customizations, integrations, and best practices.

The final step is deployment across your organization. Sage 50cloud offers flexible options including cloud, desktop, or a hybrid model. Your implementation manager will ensure a smooth rollout and be available to troubleshoot any issues.

Ongoing Support

Sage 50cloud provides several support resources:

Online knowledge base with setup guides, user manuals, troubleshooting articles, and how-to videos
Peer-to-peer community forums to connect with other users
Live chat and phone support during business hours
In-software chatbot for quick answers to common questions

You can also purchase a support plan for access to a dedicated customer success manager for account management, product updates, feature requests, and escalated issue resolution.

User Training

Sage 50cloud offers both online and live training courses for end users and administrators.

Online self-paced courses allow users to learn on their own schedule. Short video lessons cover accounting basics, software navigation, core modules, customization, and more.

For more personalized training, Sage 50cloud provides private virtual or onsite sessions with a qualified instructor. These sessions can be tailored to your organization's specific workflows and objectives. Ongoing refresh courses are also available.

Training costs are included for the first year. After that, you can purchase discounted bulk training packages based on the number of users.

Conclusion and Recommendations

Pros of Sage 50cloud

Sage 50cloud offers several key strengths, including:

Cloud-based access: Allows remote access from any device with an internet connection for flexibility.
Mobile app: Lets you manage finances on-the-go from your phone or tablet.
Integration with Office 365: Smooth workflow between Sage 50cloud, Outlook, and other Microsoft products.
Scalability: Supports small to mid-sized businesses with customizable modules and features.
Data security: Leverages cloud security protocols like SSL encryption to protect financial data.

Cons to Consider

Potential limitations to weigh with Sage 50cloud include:

Steep learning curve: The platform can be overwhelming for first-time accounting software users.
Limited customization: Options to tailor Sage 50cloud to unique needs are relatively constrained.
Dependence on internet connectivity: The cloud-based system requires consistent internet access to function.

Best Fit Businesses

Sage 50cloud works optimally for small to medium businesses in services, retail, distribution, manufacturing, and nonprofit industries that want an affordable and secure cloud accounting solution that integrates with Microsoft Office. It's a good match for leadership teams seeking collaboration capabilities and on-the-go mobile access to financial data. Companies that handle inventory management and project costing needs may find Sage 50cloud has sufficient features and integrations to support their workflows.