Xero to Odoo: A Proven Path For Growing Businesses

Xero is an intuitive, cloud based accounting application originating in Wellington, NZ. A homegrown success story, Xero is clearly a very successful software delivering to the accounting needs of many small businesses in NZ.

However, businesses mature and as needs change, a standalone accounting software is not capable of scaling with the growing complexities of your business.

| So how do you know your business has outgrown Xero?
| And what makes Odoo the logical and proven next step for growing businesses?


6 signs your business has outgrown Xero:

  1. You’ve outgrown accounting – As businesses grow, so too do their product lines, employee count, sales channels, customer base, customer types and the intricacies of their supply chains. At some point, a stand alone accounting software is not going to be able to handle the growing complexity of the business.
  2. Too many software applications – businesses start off running their numbers in xero, then bring in additional software for their POS. CRM, inventory, HR, customer support, ecommerce, marketing and the list goes on. This results in costly, manual tasks of exporting data into excel and manipulating that data to generate reports. This is a clunky process that results in errors, hours lost in manually generating reports. If you’re still managing multiple applications, or worse, managing multiple spreadsheets then this is a clear sign that your business has matured and outgrown Xero.
  3. You need to split duty and freight to individual items to create a landed cost - Xero Inventory does not have the ability to do this
  4. Expanding into new markets – whether selling through new sales channels, new subsidiaries or new countries, expanding into new countries comes with its own set of operational challenges. Handling multiple currencies, entities, languages and foreign tax regulations can push xero far beyond it’s limits. Multi-currency functionality is limited and it will come at an additional cost
  5. Inventory levels are mismatched, hard to track and forcing you to use work arounds. 
  6. You have more than 2 users entering invoices simultaneously - testing has shown that simultaneous entry of invoices causes problems in Xero. Xero assigns a next invoice number when a user starts entering an invoice. This number is not reserved, so if another user starts a new invoice, it will get the same number. Testing shows that with more than two users entering invoices at the same time, invoices are overwritten. 

As frustrating as it can be to outgrow Xero, this is great news for your business. It means your business has expanded beyond the capacities of a small business accounting platform. Its time to upgrade to an Enterprise Resource Planning system (ERP).

An ERP provides a single source of data, pulling all data from every business operation into one system where your staff can access it from anywhere on any device. This is the unified view that business leaders require to make informed business decisions.


Odoo is a complete suite of easy-to-use business management applications that merges all your business operations into one powerful system - accounting, HR, eCommerce, warehouse management, inventory management, CRM, marketing and more. Odoo's ecosystem of apps form a complete ERP system for businesses of any size and industry.

Is Xero an ERP system?

No. Xero is not an ERP system. Xero is a cloud based accounting application that can have functionality extended with to some extent through a project management software called Workflow Max or third party app integration. However, extending Xero’s functionality to perform as a complete Enterprise ERP with a mix of third party app integrations is not a good long-term approach for growing businesses. From our experience and in dealing with customers who have outgrown Xero, Workflow Max doesn't meet project management requirements for growing businesses, with the top complaints being that the user interface and scheduling tool is clunky, doesn’t handle multi-currency and it is difficult to determine the value of work in progress. Perhaps the most surprising too has been the reported inability to access in person support within NZ.


Like Xero, but for grown ups.

If you’re used to the beautiful software that Xero offers, you’ll find familiarity in Odoo.

With an app for every business need, Odoo is the logical next step for growing businesses. Flexibility and affordability ensure it is a software solution that will not be outgrown.

Xero Odoo integration

Integrating Xero with Odoo allows businesses to implement a great ERP system with more immediacy and with peace of mind, knowing that the accounting software can be switched to Odoo when the business requires it.

Odoo’s modularity allows for phased ERP implementation, literally building a better business one app at a time. Enabling’s custom built Xero Odoo integration is in use with several Enterprise clients and enables immediate business needs to be met through the appropriate apps like CRM, POS, Manufacturing and Inventory whilst utilising Xero.  

Looking for a POS system that integrates with Xero?

If a powerful POS system is an immediate need for your business, Odoo POS is based on a smart interface that any retail company can use without difficulty. Make use of Enabling’s Odoo Xero integration for a POS system that integrates with Xero and runs on any device (iPad, Tables and Desktop) effortlessly. Because Odoo is extremely flexible, you can configure Odoo POS to meet your precise needs and it will remain fully operational even if your internet connection cuts out.

How does Odoo Accounting stack up?

Odoo’s Accounting Module is a powerful, core module of Odoo ERP. Odoo Accounting will address all of your business accounting needs with the added flexibility to scale when your business requires it.

Odoo Xero Feature Comparison

Looking for a side-by-side comparison of Odoo Xero features? Check out our 2022 Odoo Xero feature comparison report.

If your business is beginning to outgrow Xero, your next step should be Odoo ERP. We recommend Odoo as the best choice in ERP software for NZ SME’s due to it’s modular design which enables a phased approach to ERP implementation that is tailored to the exact needs of your business. We have the largest team of dedicated Odoo experts in NZ. Talk to one of our Odoo experts today.