Odoo Accounting Module
Will Odoo Accounting be a good fit for your business?

There are many good accounting software offers on the market today, capable of providing the features and reporting functions SME’s need. Therefore, it can be challenging to know which will be the right fit for your business. In this comprehensive guide, we'll delve into what sets Odoo Accounting apart and help you determine if it's the best choice for your company.

Factors like cost, ease of use, features, integrations and scalability are all important considerations when researching and comparing the best accounting software. Download our Accounting Software comparison whitepaper which compares Odoo with a more familiar name in NZ, Xero:

Xero vs Odoo: NZ Accounting Software Comparison Report 2023

Download the side-by-side comparison report. 

Understanding Odoo and Its Position in the Accounting Software Market

Odoo Accounting is a core module of Odoo's suite of business management applications which include CRM, project management, inventory management, MRP and more. While Odoo Accounting can function fully as a standalone Accounting software, its ability to act as the first step, or building block, of a more holistic business management system is its key advantage. 

In comparison to single vertical apps like Xero or Quickbooks, Odoo is a new generation ERP software that combines a suite of single vertical apps into a powerful ERP system which can be built 'one app at a time', as your business scales.

In the business management software space, you see two types of applications.

  1. Traditional ERP (NetSuite, SAP etc)
  2. Single vertical apps (Xero, Quickbooks, Slack, Mailchimp etc)

Odoo is a new generation ERP that combines all that is good about traditional ERP (breadth of scope) and single vertical apps (low or free price point & easy to use). 

Infographic: Odoo new generation ERP

Exploring Odoo Accounting: An Overview

Odoo Accounting is a critical module within the Odoo ERP system. It offers a comprehensive set of features to handle payments and invoices, bank reconciliations, financial reporting, and more. To help you make an informed decision, we'll examine the key factors to consider when choosing accounting software for your business.


Key Consideration Factors for Choosing Odoo Accounting:

  1. Cost: Odoo's "one free app forever" offer allows you to use a single app for free, making it an excellent cost-effective choice for businesses primarily looking for accounting software. Even though the Odoo Accounting module consists of two apps (Accounting & Invoices), they are bundled together as a single module. As you expand your usage and require additional apps, you will begin to pay the per user per month single fee which allows you access to the FULL suite of Odoo apps.
  2. Ease of Use: To say ease of use is integral to Odoo's success would be an understatement! Odoo has a fast and modern user interface based on the popular Google Material Design trend. This gives the cloud based module a modern and elegant user interface (UI) with top-notch usability. Beware that if you are on a free plan, you will not have access to Odoo support. While there is a huge online community of Odoo users and developers that are likely to provide you the answers, if you're not technically minded this might not be right for you.
  3. Features:  Odoo Accounting offers a wide range of features, including multi-language and multi-currency support, draft invoice automation, bank synchronisation, AI-powered invoice automation, customer portals, performance reports, and seamless integration with payment gateways and banking institutions. These features empower businesses to streamline their financial processes and improve accuracy.
  4. Integrations:  Odoo Accounting is highly integrated with other Odoo apps, allowing for seamless data flow and enabling intelligent business decision-making. Additionally, thanks to Odoo's open-source nature, it can integrate with numerous third-party applications, providing flexibility and expanding functionality.

Notable Features of the Odoo Accounting Module

  • 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.
  • For a full list of features click here.

Embracing Odoo Accounting for Business Growth in NZ

Considering the extensive benefits Odoo Accounting offers, we highly recommend it to growing businesses in New Zealand. Many SMEs are currently using standalone accounting software or resorting to spreadsheets and workarounds. By adopting the Odoo Accounting Module, you can not only meet your accounting needs but also scale with ease and integrate various aspects of your business management. This integrated solution eliminates manual errors, double entry, and end-of-month chaos.

As a leading Odoo partner in New Zealand, we have witnessed the transformative power of Odoo Accounting for businesses. Our experts are available to guide you through the implementation process and demonstrate how Odoo can optimise your financial operations.

Odoo Accounting FAQ

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.

We’ve dedicated a whole article which outlines the entire list of Odoo modules and what they are.

Like Xero, Quickbooks is a single vertical app or a standalone accounting software. The software has been designed to address the accounting needs of small businesses and does achieve this.  However, if your small business needs a standalone Accounting app then Odoo's one free app forever surely makes it the best option for small businesses! All the accounting features you need, at no cost. 

And for growing or larger organisations? There comes a time where businesses may outgrow their standalone accounting software and this is where most will choose an accounting software that can be integrated with wider business management tools. 

Odoo is designed for enterprises of all sizes. As such, Odoo Accounting has a long list of features that Quickbooks does not. Odoo is better than Quickbooks for organisations small businesses, businesses experiencing growth and larger organisations too. 

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