Odoo vs Xero: Which is the Best for Your Business?

In the dynamic world of business software, selecting the right accounting solution is key to efficiently managing your finances. As companies aim to simplify their accounting and improve financial transparency, choosing from the array of platforms like Odoo, Xero, QuickBooks, and MYOB becomes critical. These leading options offer distinct features suited to various business needs.

Our series of comparisons will highlight the pros and cons of these platforms, starting with Odoo versus Xero. We'll cover their functionalities, user experience, and value to help you make an informed choice that meets your business requirements. Following this, we'll compare Odoo with other key players like QuickBooks and MYOB, giving you a comprehensive view of what each software can offer your accounting processes.

Introduction to Odoo Accounting and Xero

Odoo Accounting is part of the Odoo suite, a comprehensive open-source enterprise resource planning (ERP) system that covers a wide range of business applications, including CRM, eCommerce, inventory, and more. Odoo Accounting is designed to seamlessly integrate with other Odoo applications, providing a unified solution for businesses looking for an all-in-one ERP system.

Xero, on the other hand, is a cloud-based accounting software specifically designed for small to medium-sized businesses. It is renowned for its user-friendly interface, real-time financial reporting, and extensive third-party app marketplace. Xero focuses solely on accounting and financial management, making it a preferred choice for businesses looking for a dedicated accounting solution.

Feature Comparison

User Interface and Usability

• Odoo Accounting offers a modular interface that can be customised to fit the unique needs of your business. Its integration with other Odoo apps allows for a seamless workflow across different business functions. However, the learning curve can be steep for users unfamiliar with ERP systems.
• Xero boasts a clean, intuitive interface that is easy for beginners to navigate. Its dashboard provides a quick overview of your financial situation, including bank balances, invoices, bills, and more. Xero's simplicity is ideal for businesses that need a straightforward accounting solution.

Integration and Scalability

• Odoo Accounting excels in integration and scalability. Being part of an ERP system, it integrates flawlessly with other Odoo apps, enabling businesses to add more functionalities as they grow. This makes Odoo a versatile choice for businesses planning to scale up their operations.
• Xero offers robust integration capabilities with over 800 third-party apps, covering a wide range of functionalities from inventory management to time tracking. While not an ERP system, Xero's extensive app ecosystem allows businesses to extend its capabilities beyond basic accounting.

Pricing

• Odoo Accounting now follows a simplified subscription model, offering access to its features at a fixed rate per user per month, encompassing all available apps. This change aims to streamline expenses for businesses, providing a comprehensive solution without the complexity of modular pricing. While this approach facilitates budgeting by eliminating the need to calculate costs based on individual apps and user numbers, it's important for businesses to consider their scaling needs, as costs will proportionally increase with additional users
• Xero offers straightforward monthly subscription plans with no hidden costs. Plans vary based on the number of invoices, bills, and bank transactions, making it easy for businesses to choose a plan that matches their activity level.

Features and Functionality

• Odoo Accounting provides a comprehensive set of features that cover everything from invoicing and payments to budgeting and forecasting. Its strength lies in its ability to offer a complete ERP solution, making it suitable for businesses that require more than just accounting.
• Xero focuses on delivering a strong core accounting experience with features like automatic bank feeds, invoicing, expense management, and financial reporting. Its simplicity and focus on accounting make it an excellent choice for businesses that do not require the additional functionalities of an ERP system.

Based on the detailed comparisons provided by Odoo, here's a comparison table highlighting the key features, usability, and conditions between Odoo and Xero

GENERAL ACCOUNTING

General Scope	Odoo	Xero
Multi-currency	Yes	Yes
Consolidation	Yes	No
Multi-User	Yes	Yes
Multiple Journals	Yes	Yes
Number of Languages	85	1
Supported Countries	80+	5

Access Rights	Odoo	Xero
Access Rights per Screen	Yes	No
Access Rights per Field	Yes	No
Customizable Validation Steps	Yes	No

Third Party Integration	Odoo	Xero
Availability of an API	Yes	Yes
Spreadsheet Integration	Yes	No
Import: Excel or CSV	Yes	Yes
Expert: Excel or CSV	Yes	Yes
Customer Portal	Yes	Yes

 

ACCOUNTS RECEIVABLE 

Customer Invoice	Odoo	Xero
Proforma Invoices	Yes	No
Multiple Taxes per Line	Yes	No
Advanced Taxes (fixed, tax of taxes, etc.)	Yes	No
Discounts	Yes	Yes
Pricelists	Yes	No
Multi-Step Payments Terms	Yes	No
Cash Discounts	Yes	No
Outstanding Payments Reconciliation	Yes	Yes
Emails Discussion as Attachment	Yes	No
Configurable Email Templates	Yes	Yes

Send Invoices	Odoo	Xero
Generate a PDF Invoice	Yes	Yes
Batch Send Invoices by Email	Yes	Yes
Post Invoices by Standard Mail	Yes	No

Online Payments	Odoo	Xero
Credit Cards	Yes	Yes
PayPal	Yes	Yes
SEPA Direct Debit	Yes	No

Customer Statements	Odoo	Xero
Aged Receivable Balance	Yes	Yes
Customer Statements	Yes	Yes
Automated Follow-up Letters	Yes	Yes
Automated Follow-up Actions	Yes	Yes
Unpaid Fees and Penalties	Yes	No
Third-Party Debits Recovery	No	Yes

Recurring Revenues	Odoo	Xero
Automated Recurring Invoices	Yes	Yes
Subscription Upsell / Renewal	Yes	No
KPIs: Churn, MRR, Upsells, etc	Yes	No
Alerts for Contract Renewal	Yes	No

Miscellaneous	Odoo	Xero
Automated COGS Entries	Yes	No
Automated Deferred Revenue	Yes	No

ACCOUNTS PAYABLE

Vendor Bills	Odoo	Xero
Billing Control (Purchase Orders / Receptions)	Yes	No
Multiple Taxes per Line	Yes	No
Purchase Agreements	Yes	No
Multi-Step Payment Terms	Yes	No
Fleet Bills & Disallow Expenses	Yes	No
Peppol / UBL Support	Yes	No

Artificial Intelligence	Odoo	Xero
Bills OCR Recognition	Yes	No
Learning Intelligence	Yes	No
Payment Data from OCR	Yes	No
Real Time OCR (<10 minutes)	Yes	No

Vendor Payments	Odoo	Xero
Aged Payable Report	Yes	Yes
Print Checks	Yes	Yes
Automate Wire Transfer (SEPA)	Yes	No
ACH Transfers	Yes	No

Expenses	Odoo	Xero
Employee Expenses Report	Yes	Yes
Expenses Validation Flow	Yes	Yes
Mobile App for Expenses	Yes	Yes

Miscellaneous	Odoo	Xero
Assets Management	Yes	Yes

Bank & Cash	Odoo	Xero
Bank Interfaces	Yes	Yes
Import Statements: QIF	Yes	Yes
Import Statements: OFX	Yes	Yes
Import Statements: CSV	Yes	Yes
Import Statements: Coda	Yes	No
Import Statements: Camt.053	Yes	No
Deposit Tickets	Yes	Yes

Efficiency	Odoo	Xero
Reconcile while Matching	Yes	Yes
Misc. Operations while Matching	Yes	Yes
Automated Rules	Yes	Yes
Bank Reconciliation Reports	Yes	Yes
Automated Currencies Rate Update	Yes	Yes

 

EXTRAS

Analytic Accounting / Grouping	Odoo	Xero
Analytic / Cost Accounting	Yes	Yes
Multi-Level Analytic Accounting	Yes	No
Multiple Plans	Yes	No

Budgets	Odoo	Xero
General Budgets	Yes	Yes
Analytic Budgets	Yes	Yes

Payroll	Odoo	Xero
Payroll	Yes	Yes

Valuation	Odoo	Xero
Standard Price	Yes	No
Average Price	Yes	Yes
FIFO	Yes	No
Perpetual Inventory Valuation	Yes	No

REPORTING

Legal Statements	Odoo	Xero
Profit & Loss	Yes	Yes
Balance Sheet	Yes	Yes
Cashflow Statement	Yes	Yes
General Ledger	Yes	Yes
Tax Reports	Yes	Yes
Tax Audit Report	Yes	Yes

Reports	Odoo	Xero
Pivot Table on Multiple Dimensions	Yes	No
Customizable Reports	Yes	Yes
Customizable Dashboards	Yes	Yes
Annotate Reports	Yes	Yes
Customizable KPI’s	Yes	Yes
Predefined Executive Summary	Yes	Yes
Perpetual Fiscal Year Closing	Yes	Yes

USABILITY, PRICING AND CONDITIONS

UI	Odoo	Xero
Full Web Interface	Yes	Yes
Mobile App	Yes	Yes
Android App	Yes	Yes
iPhone App	Yes	Yes

Marketplace	Odoo	Xero
App Store / Add-ons	Yes	Yes

Other (integrated) solutions	Odoo	Xero
eCommerce	Yes	No
Expenses	Yes	Yes
Inventory	Yes	Yes
Manufacturing	Yes	No
Operations (project, timesheet, etc.)	Yes	Yes
Human Resources	Yes	No
Document Management	Yes	Yes
Subscriptions	Yes	No
Point of Sale	Yes	No
Purchase	Yes	Yes
Sales	Yes	Yes

Subjective Ratings	Odoo	Xero
Navigation and Search	5/5	5/5
Data Entry	5/5	5/5
Reconciliation Tool	5/5	5/5
Mobile App	4/5	5/5
Reports Flexibility	4/5	4/5
Pricing and Conditions	Odoo	Xero
Monthly Pricing	Free	$30
Number of Users	Unlimited	5
Contract Duration	Monthly & Yearly	Monthly
Free Trial	Yes	Yes
User Satisfaction	Odoo	Xero
Rating on g2Crowd	4.3/5	4.3/5
Rating on GetApp	4.2/5	4.4/5
Rating on Capterra	4.1/5	4.4/5
Brand Exposure	3/5	4/5

Choosing between Odoo Accounting and Xero ultimately depends on your business needs. If you're looking for a comprehensive ERP system that can grow with your business, Odoo Accounting might be the right choice. However, if you prefer a dedicated accounting solution with a user-friendly interface and straightforward pricing, Xero could be a better fit.

Both platforms offer unique advantages, and the decision should be based on the specific requirements of your business, including the need for scalability, the importance of a user-friendly interface, and the desired level of integration with other business functions. By carefully considering these factors, you can select an accounting solution that not only meets your current needs but also supports your business's future growth.