Odoo Accounting Review 2024: Pricing, Features, Pros & Cons

Odoo Accounting is an open-source, highly scalable accounting software for business owners who have some coding experience, but anyone can quickly get started for free and learn as their needs develop over time.

However, the title is only free for one app, so adding on any other Odoo option to the accounting software will cost you. And many industry standard features, like robust legal compliance, are notably absent from the base product.

Let’s jump into whether Odoo is right for your business.

Odoo Accounting’s pricing

If you’re only planning to use Odoo Accounting and no other apps, then it’s completely free. But this solo adherence is hard to accomplish for most businesses. For example, if you want software to manage inventory or personnel on top of accounting, that will require payment.

And although the title is open source, this code is only for the core application, and you do still have to pay per user. Cloud hosting is completely free, but if you choose the Custom plan and decide to host on Odoo.sh, Odoo’s integration platform, you may have to pay extra fees.

Still, Odoo is a champion for simplicity and transparency. There are only three subscription tiers, including the free level.

Compare Odoo plans and pricing

Odoo Accounting’s key features

Double-entry accounting

The platform employs double-entry accounting. This advanced, top-level approach means that every transaction is recorded twice, once as a debit in one account and once as a credit in another. This method ensures your books are balanced, transparent, traceable and well documented. Investors, accounting firms and most other regulated professionals rely exclusively on double-entry accounting.

Odoo Accounting simplifies this complex process, so you can sleep well knowing the software has your back in case of an audit, and it makes it easier to onboard outside financial professionals.

See Also: Best Practices for Choosing the Right Accounting Software

Automated processes

Another significant perk is Odoo’s automated invoice management and payment processing. The platform facilitates the creation and tracking of both incoming and outgoing invoices with ease. Some handy methods include automatic document capture via optical character recognition (OCR), artificial intelligence-powered decision-making and automated reminders for overdue payments. This computer-aided system streamlines cash flow management and minimizes the risk of payment delays.

Standardized invoice formats

While some competitors take a generic or proprietary approach to invoicing. Odoo Accounting gets technical. The title supports standardized invoice formats, such as Factur-X and India’s E-Invoice system. So, you can avoid having to manually revamp data to match these international guidelines.

Smaller, simpler businesses may not need to adopt these systems. But for growing businesses that must adhere to more bureaucracy, this in-house support is a major perk.

Here is the full list of supported invoice formats:

• Factur-X (CII)
• Peppol BIS Billing
• XRechnung
• Fattura PA
• CFDI (Mexico)
• Peru UBL
• SII IVA Llevanza de libros registro
• UBL (Colombia)
• Egyptian Tax Authority
• E-Invoice (India)
• NLCIUS (Netherlands)
• EHF (Norway)
• SG BIS Billing
• A-NZ BIS Billing

Odoo Accounting pros

Broad solutions

The title is praised for its extensive features covering almost every aspect of accounting needs for businesses. This array includes accounts payable and receivable, payments, analytics, automated expense and revenue recognition, and integrations with other business tools. Moreover, Odoo Accounting supports more than 15,000 banks worldwide. And if you need support beyond accounting, the company’s broader ecosystem can cover most other administrative needs too.

User-friendly interface

Despite its broad functionality, Odoo Accounting is known for its ease of use and simplicity. The visually attractive platform allows users to locate essential functions on the dashboard rapidly, with lots of colors and icons abound. This point-and-click approach facilitates quick navigation through various modules and functionalities. And its user-friendliness extends to its mobile application, which brings most desktop management and reporting capabilities to users on the move. As a result, you can stay productive on your phone from anywhere in the world.

Lots of time-saving value

Odoo Accounting strives to help labor-strapped business owners do more with less. It sports plenty of time-saving features that simplify tedious tasks. For example, the app can automatically synchronize bank transactions with invoices and receipts. It can also parse bills and other paperwork, so you don’t have to input data manually. These two perks save hours of punching in numbers by hand. And plenty of other nifty bells and whistles help you take shortcuts without sacrificing integrity.

Open-source setup

Odoo’s open-source nature is a significant advantage. It grants you flexibility and transparency to customize the software to meet your desires. Plus, this model encourages community contributions, leading to a rich ecosystem of support and updates. And using GitHub, you can see how frequently updates happen, so you can easily stay in the know.

Still, this means you do need some coding experience to take full advantage of its potential. If your business is small enough, you could start with the basics and learn as you go — or hire someone to help you as you grow.

Odoo Accounting cons

Lack of specialization

Because of the open-source setup, the company’s software is a jack of all trades but a master at none. Many crucial features are absent or orphaned with minimal depth, leaving it up to you to build out what you need. For example, there are neither full-service tax filing perks nor any meaningful assistance with manual reporting. Compare this to QuickBooks, which seamlessly flows data to Intuit’s popular TurboTax software.

And it isn’t just absent functions. The incredibly crucial topic of legal compliance is generic and inconsistent. For example, the title states it’s “pre-configured to address your country’s requirements.” Yet, the tool’s digital signatures are only compliant with the United States’ E-Sign Act and the European Union’s eIDAS. Canada’s Personal Information and Electronic Documents Act (PIPEDA) is not explicitly followed, nor are the regulations of other nations.

Not truly free

Sure, Odoo Accounting is free if it’s your only open-source app. But the company splits out functions into multiple apps, rather than housing them under one roof or pricing features as smaller add-ons.

So, perhaps you can process invoices for free to start. But if you also want to keep track of the inventory these invoices cover, you’ll need to upgrade to the Standard or Custom subscription plans, which can cost $25 per user or more monthly, depending on current deals and payment cadence. However, once you upgrade, you do have access to any and all of Odoo’s apps, so it’s up to you if the extra work building out the base apps is worth the cost — or if you’d rather pay extra for a more robust, fully developed solution like QuickBooks Online.

Unstable development

As mentioned above, Odoo Accounting is open source. So, while the company maintains the core platform, many add-ons are crowdsourced. As a result, there can be variability in these tools’ quality, reliability and update frequency.

One of the critical issues is that many add-ons may go without updates for extended periods. This abandonment can lead to compatibility issues, especially when the company releases new versions of its core software. Modules that were functional and useful in one version of Odoo may not work seamlessly with newer versions. So, if you’re attracted to the platform for certain add-on abilities, you may get left behind in time.

Alternatives to Odoo Accounting

QuickBooks Online

QuickBooks Online is a widely popular cloud-based accounting software known for its ease of use and powerful features designed for small to midsize businesses. Unlike Odoo, this alternate option focuses more exclusively on accounting and financial management.

The user-friendly title boasts extensive analytics, integration with other Intuit apps and a comprehensive ecosystem of add-on features. These thoughtful perks make QuickBooks Online an excellent option for businesses seeking a straightforward, efficient solution.

And for those who are always on the move, the platform includes a highly rated mobile app. As a result, you’ll always have access to the tools you need from anywhere.

Sage 100

Sage 100 is a powerful alternative. It’s prized for its broad range of features targeting entities requiring more than just accounting solutions. The title stands out for its scalability and the ability to support a wide range of business processes. Such functions include inventory management, manufacturing, distribution and more, alongside core accounting functions. This breadth makes it suitable for businesses looking to manage multiple aspects of their operations within a single platform.

Compared to Odoo, Sage 100 may offer more specialized features tailored to specific industries. Plus, it also delivers robust customization options and a strong support network. So, for businesses requiring detailed control over their operations and accounting, with a focus on scalability and industry-specific functionality, Sage 100 presents a compelling option.

Review methodology

We carefully analyzed Odoo’s ease of use, value, overall learning curve, user experience and functionality. We also studied the technical details regarding Odoo Accounting’s adherence to financial best practices and double-entry accounting. Further, we reviewed user feedback and considered how the title compares to competitors, among other factors.