A number of clients have approached us recently with regard to the slow performance of Sage Line 50 in a multi-user environment. They had been told by the Sage helpdesk to either upgrade their hardware, router connections or Ethernet cables, all with limited results. After further investigation with others in the field, we have determined that the problem lies in the actual software architecture within Sage itself!
All transactions in Sage are stored in disk files (ACCDATA) that are then shared on a server. This means that files are opened, read, written and locked at regular intervals. This is fine for a single installation, but as soon as you introduce a number of users, then these records need to be accessed concurrently.
Sage then has to stagger these processes and prioritise actions. As the file grows and other users are added, this then has a dramatic impact on performance. Users will face time out errors, sluggish response times and an increase in the likelihood of data corruption. It is the same principle as using excel across a network. If someone is working on a file that someone elese tries to access, then it will display a notice denying access and goes to read only mode. This prevents others accessing the record while being updated, thus preventing corruption.
The problem is that SAGE is not written on a database format and has no set procedures or formal warnings in place. A database (SQL, .NET) provides a larger structure with its own checks and balances that allow for data input from different sources and has built in routines to protect the integrity of the information.
“In a database, 1 bit of bad data may corrupt one record, but not the whole file, whereas SAGE uses a disk file which has no such protection and the whole file could be corrupted.”
Sage has indicated that they will release a “database” version, but this has yet to eventuate. In truth it is not in Sage’s interest to upgrade, as trying to entice customers to move up to Sage Line 200 or Sage On-line. The effort to rewrite the program in a new format is not worth the return made from other products in their range.
Upgrading Server Networks
Upgrading server networks will appear to make the system more responsive, until the file gets larger and then the same problems will persist. Some Sage partners have been reported as upselling hardware and server solutions to businesses in the full knowledge that it will not solve the underlying problems.
The choices are to expend money on unnecessary servers or to look at other software alternatives. Next we will review some equivalent software options:
Migrating away from Sage Line 50.
Once you have come to the decision to migrate the data to a new accounts package, there are several things to consider:
In terms of getting information out of Sage, that is relatively straight forward as customers and suppliers can be exported to excel or a csv format file. This provides a common language for data to be imported into almost any other system. Outstanding debtor and creditor information is a bit more complicated as it depends on how the new system handles journal templates. Sending reports directly to excel can also raise issues as the office links can merge cells which makes columns difficult to manipulate. It is suggested to engage a consultant who is familiar with both Sage and the new solution.
Alternatives to Sage Line 50.
In terms of alternatives in the market place the following is an overview of what is available.
QuickBooks
QuickBooks is an American program that has comparable functionality with Sage. For me it has some advantages with the ability to associate journals with contacts, increased cashflow planning and stock valuations.
Accounting Edge
For those who remember MYOB, “Account Edge” is the mac equivalent of the same program with some enhancements. The program is very intuitive and easy for non-accountants to pick up. It has the advantages (and disadvantages) of having the option of an unlocked system. This makes it easy to delete transactions and modify invoices with the corresponding drawback of transactions “floating” between VAT quarters unless you remember to manually lock the periods.
Cloud based accounting software
For small business it may be more cost effective and efficient to use a cloud based solution such as “Kashflow” or “Xero“. For those dealing with stock then Dear Systems is a modular software that can link into either QuickBooks or Xero for accounting purposes. This has the advantage of being able to access anywhere, via a web browser, as the software is hosted on a remote server. This minimises the expense of upgrading computer hardware with the flexibility of not being tied to an individual office. The basic accounting features are available to both programs, although Zero has attracted partners to provide more add-on solutions.
Enterprise Software System
For those who have outgrown Sage Line 50 and need to extend into advanced product assembly, contact management and stock logistics then now might be the time to upgrade to an Enterprise Software system. This is a much larger program which provides various business solutions based around the “Accounting Module”. Business Cloud Essentials provides a solution which has 10 times more functionality than Sage Line 50 and is only slightly more expensive. As it is a more advanced system and therefore there is more involved in the implementation. More time and preparation needs to be given to how the system can be modified to fit the business model.
SAP has also entered the market with “SAP One” designed for the SME market and Netsuite is the cloud based equivalent. If you want to stay in the Sage family then Sage 200 is also in the same league with greater analysis of bill of materials. To help compare solutions we have designed a template which compares functionality against price.
The IT and accounting system is the backbone of any business and careful thought should be given to what software suits your requirements, both now and in the future.
See our Accounting Packages page for Making Tax Digital Solutions for Mac and PC.
Other related articles include the difference between accounting packages and ERP software. See our downloads section for financial planning tools.
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