There are many accounting software offers on the market, capable of providing the features and reporting functions SME’s need. So, what differentiates Odoo Accounting Module from the pack and how can you be sure it is the best choice for your business?
Factors like cost, ease of use, features, integrations and scalability are all important considerations when researching and comparing the best accounting software for your business. This article will outline each of these factors for the Odoo Accounting Module to help you decide whether Odoo Accounting is a good fit for your business.
You can also download the Accounting Software comparison whitepaper which compares well-known accounting software apps that are likely to be on your research list:
- Accounting Software Comparison: Odoo | Sage | Xero | Quickbooks
- Are you a Sage user? Read our Sage to Odoo overview
Before providing an overview of the Odoo Accounting Module, it’s important to understand what Odoo is and how Odoo fits into the accounting software market.
How Odoo Fits Within The Accounting Software Market
Odoo is a suite of business management applications that integrate accounting, CRM, project management, inventory management and more. This ecosystem of open source business apps forms Odoo ERP, the next generation enterprise resource planning (ERP) system for businesses of every size.
In the ERP and Accounting space you see two types of software applications.
- Traditional ERP
- Single vertical apps.
Odoo is a new generation ERP that combines all that is good about traditional ERP and single vertical apps. A free or low price point for individual apps make the technology available to SME's while also allowing the flexibility and freedom to scale as rapidly (or slowly) as your business requires. In addition to the business scope that will mean your business will not outgrow Odoo.
The suitability of Odoo to all business sizes, industries and vertical is what continues to propel Odoo as a leading software solution.
What is Odoo Accounting?
Odoo Accounting is one of the most vital and important modules of Odoo ERP. Businesses can use Odoo accounting to fulfill all your accounting needs like payments and invoices, bank reconciliations, reports and much more. Let’s go through the key consideration factors for choosing the right accounting software for your business.
Key Consideration Factors:
- Ease of use
Due to Odoo’s ‘one free app, forever’ offer, for as long as you use or require a single app, the app will be free for an unlimited number of users for an unlimited time. So, if you’re only looking for an accounting software right now, the cost to you is nothing!
Odoo’s Accounting module is in fact made up of two apps (Accounting & Invoices), however they come as a package deal and are considered a single module/app because one Accounting requires Invoices to work. Therefore, if you’re making use of the one free app, forever offer – you get both Accounting and Invoices for free.
For growing businesses, you’re likely looking to uncomplicate your tech stack and finally have your accounting system integrate with all other software applications you use to run your business. Once you require the use of more Odoo apps, you will begin to pay for all apps in use. So at this point, you’ll need to make use of Odoo’s pricing calculator to work out which apps you may like to use, what costs are involved and how these compare to your current tech stack.
Ease Of Use:
Odoo’s unique value proposition is anchored by the breadth of it’s business scope and high usability. To say ease of use is integral to Odoo, would be an understatement! Odoo has a fast and modern user interface based on Google Material Design trend. This gives the UI a modern and elegant technical design with top-notch usability.
The Odoo Accounting module is cloud based and free for those who use it on it’s own. This will mean however that Odoo support is not available to you. You will therefore want to be sure you’re confident using the software without the availability of support. Given that it is free, you’ve got nothing to lose from giving it a try.
There is also a huge online community of Odoo users and developers. If you need help mastering Odoo Accounting, you’re likely to find the answers you need in forums or within the many youtube videos posted by Odoo and others.
Ease of use should not however be misunderstood for ease of implementation/setup for businesses looking to use Odoo Accounting as part of a wider set of business management apps. There are many negative reviews out there of businesses or developers who implement.
- Multi-language, multi-currency, and multi-company capable. Multi adaptations support multi currencies with the exchange rate updating daily. This feature works with multiple users, based on access rights. If you require Accounting across multiple companies, this is possible with different journals, based on different companies, or by departments.
- Draft invoice propositions: Draft invoices are created automatically by Odoo based on sales order, timesheets or delivery orders.
- Bank synchronisation: Odoo supports more than 20,000 banks globally, with a full drop down list available for each country. Once set up, your bank statements will automatically synch every 4 hours. That makes reconciling your accounts as you go easy and reduces time spent reconciling at month end. Furthermore, Odoo’s AI algorithm will automatically reconcile lines as it learns about your transactions, suggesting matches if it is not sure.
- AI powered invoice automation backed by humans! Odoo Accounting Module gives you powerful AI algorithms that work hand in hand with humans. How this works is you receive a vendor bill (be it by email, scan or API) and a draft bill will be created using OCR, AI and tailored templates. You’re then given a one click validation which learns your preferences for future bills. This means unmatched accuracy. When you update data provided by Odoo during the validation step, their teams manually review the bill and develop a tailored template. This template allows the AI system to recognise the document layout and grab the appropriate data so that future invoices issued by this vendor are processed perfectly.
- Customer portal: Your customer can track their order status, invoices, and payments through their portal.
- Performance Reports: Analyse your performance through various reports. By default, Odoo integrate all the best practice KPI's to improve your performance. From version 14, Odoo Accounting will show you the meaning of each section of the report as well as 'unrealised gains and losses' reports that allow users to generate reevaluation journal entries.
- Payments: Odoo Accounting supports all main payment gateways (Ingenico, Paypal, Adyen etc). Odoo allows for the set up of automatic emails that remind customers to pay their delayed invoices and you can have a clear view of your overdue payments (and future payments) at any time. It is easy to apply 'automatic transfers' to specific partners, making intercompnay transactions super simple. Version 14 onwards has improved batch payment error reporting and batch payments are compatible with SEPA credit transfers.
- hese are a selection of the many features of Odoo Accounting. For a full list of features click here.
The Odoo Accounting Module is highly integrated which lends itself to an easy initial setup and configuration. In addition to the high integration within the app, all of Odoo’s apps are natively and deeply integrated with each other. This makes the ecosystem of apps very powerful in providing a single source of truth and power intelligent business decisions.
Due to the open-source nature of Odoo, third party integrations exist with thousands of well known applications. And if it doesn’t already exist, it is much easier to build.
The Odoo Accounting Module can be integrated with third-party payment platforms as well as 22,000 different banking institutions with not much more than a click.
FAQ: Odoo Accounting Module
Is Odoo good for Accounting?
Yes. Odoo is good for accounting, no matter your business size. The standard accounting functionality of the Odoo accounting module, built into an out-of-the-box application covers all areas of accounting. Additionally, the highly integrated nature of the software along with continual advancements in technology make it a real option for large, global enterprises with high transactional volumes and complex requirements.
For an in-depth review of Odoo as an accounting software, by a chartered accountant click here.
What are Odoo Modules?
We’ve dedicated a whole article which outlines the entire list of Odoo modules and what they are.
All things considered, we recommend Odoo and the Odoo Accounting Module to all growing businesses in New Zealand.
As a leading Odoo partner in NZ, we often speak to business owners and leaders of SME’s who already run a standalone Accounting software like Quickbooks or Xero. We know that often, businesses are running spreadsheets and work arounds, trying to force a standalone solution to grow with their evolving needs and complexities. Talk to our experts today and discover how the Odoo Accounting Module can not only meet all your accounting needs today but scale with growth and form an integrated business management solution that allows you to step away from spreadsheets, human error, double entry and end of month chaos!