Searching for new accounting software is like looking at a sandwich shop’s menu because there are so many types of bookkeeping solutions – including small business, billing and invoicing, SME and more – that you’re left scratching your head. Have you ever considered an open-source accounting software — a program for you and your IT team to examine and adjust its coding to fit your business requirements?

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Thankfully, SelectHub has your back with our top picks of the best open-source accounting software. Before examining this list, why not read further to learn more about open-source software, its standard features and benefits.

What is Open-Source Software?

Open-source software is a type of program for you and your IT team to examine and adjust its coding to fit your business requirements. This type of solution differs from free software.

Open-Source vs. Free Software

It’s easy to confuse free with open-source software, but in actuality, they’re as similar as burgers and hot dogs. As the name implies, free software often comes with no price tag, but still allows users the full benefits of the software. Often free software is everything it appears to be on the surface: a free solution for your business to implement. Similarly, open-source software provides users with access to software, often without any associated costs. The primary difference between free and open-source software is that an open-source solution provides access to the source code, hence the name. This access allows users to make modifications to the system at all levels.

While free and open-source solutions are incredibly similar, the nuances that set them apart can make a big difference for business. When considering these types of solutions make sure you’re aware of how much access you’ll have to the source code and ask about hidden fees to ensure there’s no confusion about what type of software you’re implementing.

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Primary Benefits

While other types of software can come with benefits like robust technical support from the vendor, they also come with disadvantages like steep price tags. Similarly, open-source solutions come with perks and pitfalls. Benefits include:

• Versatility: Tailor this program’s source code to align with your organization’s needs – i.e. capabilities, updates, priorities and more.
• Costs: Pay minimal to zero licensing and subscription fees for this type of program.
• Security: Pinpoint bugs, potential threats, security gaps and more immediately within the source code and fix or remove them.

Key Features

No two software are alike. Nevertheless, most accounting solutions come with a few standard functionalities. However, keep in mind that just because a feature is popular or common, it doesn’t mean it’s necessarily right for your company. A few standard features you’ll want to watch for include:

• Bank Reconciliation: Ensure all of your transactions are correct with this accessory.
• Tax Management: Manage tax documents and regulations with this tool.
• User Management: Determine whether you want single users or multi-users and even assign user roles with the right user management attribute.
• Reporting: Formulate and print various types of reports such as profit and loss, cash memos, bills, invoices and more.

Still not sure what features to prioritize? Take a peek at our detailed features article or our sophisticated requirements template to make a thorough wishlist.

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Best Open-Source Accounting Software

It’s time to review our picks for this software. Have your wishlist ready; here’s our complete roster.

Odoo

From agriculture and construction to real estate and telecommunication, Odoo accounting caters to businesses of all sizes, regardless of industry. It offers both on-premise and cloud deployment and is available as an app for Android and iOS devices.

A preview of Odoo Accounting’s general ledger.

Noteworthy Advantages

Odoo possesses various differentiators that set it apart from the competition.

• Free Forever: This platform is free for infinite users so long as you don’t need additional applications or hosting options. The community/open-source version only has invoicing and payment capabilities.
• Artificial Intelligence (AI): Scan and upload PDFs or images to vendor bills and automate their creation with AI.
• Customer Portal: Obtain order statuses, invoice and payment tracking through the client portal. Patrons may revise their plans, order upgrades, downgrade or unsubscribe in one centralized location.
• QR Codes: Scan QR codes with the user’s native banking program to complete transactions. The QR code is also available on PDF invoices and appears on payment screens for quotes and bills.
• Bank Statements Import: Leverage OFX, QIF, CSV or Coda formats to import bank statements when a bank isn’t supported through Odoo.
• Balance Sheet Calculation: Add current year earnings to balance sheets automatically. Profit and loss is promptly calculated according to selected dates. Administrators can lock entry dates for all users.
• Multiple Currencies: Work with various currencies and automatically change currency rates at different intervals.
• Revenue Dashboard: Access various metrics such as MRR, recurring revenues, churn, CAC, CAC ratio, growth, forecasts, ARR, CLT and CLTV.
• Tax Audit Report: Evaluate tax report calculation for audit purposes. Pick a line and click the audit button to audit journal items.
• Reconciliation Report: Gain reconciliation reports to account for differences between bank statement balances and accounts.
• Country-Specific Statements: Work with country-specific statements, including Intrastat reports, VAT statements, profit and loss/BS of the country, VAT subjected customer listings and more.

Key Features

Bank Reconciliation

This apparatus offers automatic reconciliation propositions, additional journal item registrations, record searching and the inputting of manual reconciliations for open and paid invoices. You may also immediately work with partial and full reconciliation propositions from invoices or bank statements. The automated reconciliation function allows bank statements to sync from more than 15,000 banks in the U.S., Canada and New Zealand in real time.

Tax Management

The tax engine offers a wide range of tax calculations such as price included or excluded, percentage, grip, partial exemptions and more. This module delivers tax reports in accrual or cash-based formats according to a particular region. You may also implement tax rules that automatically cipher values on invoices.

User Management

Establish default configurations for accountants and adviser roles, allot infinite users with various access rights as the administrator and automate business flows with inter-company regulations. Govern company subsidiaries within the same system with the user management feature. You can even arrange documents into several journals by department or type of activity and split roles throughout multiple users.

Reporting

Handle numerous pre-made templates ranging from cash flow statements to profit and loss. Link multiple companies’ bookkeeping data into groups. You may also take notes on reports and include more modifiable rows.

Additional Accessories

Although Odoo Accounting has all of the common open-source accounting software features, it offers supplementary tools for your accounting practices. These additional accessories include:

• Account Receivable: Build invoices with payment conditions, numerous taxes, discounts, price lists and more as well as print out invoices or send them via email.
• Credit Management: Promptly propose emails, follow-up letters and responsibilities for users to administer credit collection procedures.
• Bills Payment: Trace deposit tickets and print checks in large quantities.
• Accounting Analytics: Allocate a single accounting entry into several analytic accounts with analytics tags and pliable distributions.

Limitations

Like most solutions, this program has some limitations. These drawbacks include:

• It doesn’t offer payroll modules.
• It lacks third-party debt recoveries.
• It doesn’t account for unpaid fees or penalties.

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ERPNext

ERPNext is an extendable ERP that consists of various programs such as HR and payroll, accounting, manufacturing, sales and purchase, CRM, asset management and others. It’s designed for businesses of all sizes and also employs cloud and on-premise deployment. It’s available as an app for iOS and Android devices.

An example of ERPNext’s dashboard.

Noteworthy Advantages

ERPNext contains various strengths that help it outdo the alternatives.

• Journal Entry Template: Permit users to establish and pick a preselected account and options list as they create new journal entries.
• Payment Terms Template: Gather various payment conditions and add transactions. This template relays to ERPNext to fill in the table in the payment terms schedule portion of the sales or purchase documents.
• Chart of Accounts Importer: Import chart of accounts, download a template that aligns with the chart and fill out the template efficiently.
• Payment Order: Manage this internal document to chronicle bulk payments against suppliers and capture various payment requests against vendors.
• Item Wise Taxation: Leverage this tool for item-wise taxations, create item tax templates and allocate them to an item or item group, and assign legitimacy to tax templates.
• Loyalty Program: Draft customer loyalty programs, review loyalty points earned on a client’s dashboard and adjust conversion factors, expense accounts and expiry durations via the redemption section.
• Period Closing Voucher: Detect profits and losses for an accounting period that’s been balanced in the books. Implement a period-closing voucher to set all income and expense accounts to zero after inputting special entries for the existing fiscal year.
• QuickBooks Migrator: Link ERPNExt with QuickBooks online API, migrate information across both solutions and create an ERPNext account for every QuickBooks tax rate received.
• Margin: Apply margins to quoted and sales order items automatically if the pricing rules are determined.
• Asset Value Adjustment: Govern fixed asset values by making alterations if necessary. Purchase or sell an asset and draft all the required documents for it.
• Localization: Support local standards for every global region, add custom fields and custom reports to support rules in a specific region and handle more than 70 languages.
• Auto Repeat: Develop particular documents at any given time automatically, establish auto repeat from documents, alert specific contacts through email when repetitive documents are created and review the auto-repeat frequencies.
• Third-Party Integrations: Access pre-made integrations with third-party solutions including Google Calendar, Plaid, Amazon, Shopify, LDAP, Google Maps, Dropbox and more.

Key Features

Tax Management

This module offers tax withholding categories for most cases by default and you may create more if necessary. You may set which particular tax templates you need for certain sales and purchase transactions with the tax rule extension. This appliance enables you to set a tax category to apply numerous tax rules to a transaction under different considerations. Lastly, if some items have different tax rates from the established tax rate, you may develop separate item tax templates and allocate them to a specific item or item group.

Bank Reconciliation

Synchronize bank statements and entries made within the solution by just pressing “Update Bank Transaction Dates” in the bank reconciliation apparatus. ERPNext has two reconciliation appliances. One is manual reconciliation that permits you to define clearance dates against payment entries, sales invoice payments or journal entries. The other is semi automatic and clears bank transactions against payment entries, sales and purchase invoices payments, journal entries or expense claims. Chronicle bank transactions in ERPNext to reconcile them with current costs and even suggest corresponding payments for an amount that seems to match a selected bank transaction.

Accounting Reports

The reporting module offers an array of different accounting reports. Examples of reports are:

• General ledger
• Accounts receivable
• Accounts payable
• Tax reports
• Sales invoice trends
• Customer credit balances
• Party wise trial balances
• Budget variances
• And more!

Additional Accessories

ERPNext has other accessories worth mentioning to streamline your account practices. These extra capabilities include:

• Journal Entry: Reverse credit and debit amounts against relevant accounts to reverse journal entries.
• Sales Invoice: Develop sales invoices from sales orders or deliver orders as well as add items with barcode scanning.
• Pricing Rules: Institute pricing rules for selling or purchasing items and set date intervals when those pricing rules will take effect.
• Point of Sales: Join a sales campaign with a point of sale profile to trace total sales against it.
• Multi-Currency Accounting: Initiate exchange rate revaluations to handle a company’s chart of accounts with various currencies.

Limitations

Like most programs, ERPNext has a few drawbacks. These cons include:

• Not offering multi-sessions.
• The accounting apparatus doesn’t have offset tools.
• Lacks electronic data Interchange (EDI).

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GnuCash

GnuCash is an open-source accounting software intended for small businesses with an on-premise deployment. It’s specialized for the finance and software industries. It’s also available as an app for Android devices.

A preview of GnuCash’s bank reconciliation module.

Noteworthy Advantages

This program offers various differentiators that set it apart from its competitors.

• Customization: Obtain options to customize the display style of the register.
• Financial Statements Import: Import Intuit Quicken QIF files via an assistant. Support open financial exchange (OFX) protocols.
• Data Storage: Stow data in XML format or a SQL repository with SQLite3, MySQL or PostgreSQL.
• Check Printing: Print checks in standard formats on common check stocks and create tailored check layouts via a customization graphical user interface (GUI).
• Mortgage and Loan Repayment Assistant: Have a guided dialogue to initiate loan payments as scheduled transactions.
• Localization: Obtain internationalized dates and currencies and work with more than 50 languages.

Key Features

Bank Reconciliation

The account reconciliation tool allows users to compare transactions recorded into an account with a bank statement.

Reporting

Showcase financial data with bar charts, pie charts and scatterplots with the reporting element. You may also work with pre-built reports including profit and loss statements, balance sheets and portfolio valuations amongst others. You may adjust report formats and contents accordingly.

Additional Accessories

Despite GnuCash only possessing half of the common features, it has supplementary appliances that can meet your business needs. These extra attributes include:

• Double-Entry Accounting: Ensure every transaction debits one account and credits the others with an equal amount so the difference between income and expenses accurately aligns with the sum of assets and liabilities.
• Transaction Scheduling: Formulate recurring transactions and adjust amounts and timelines.
• Cash Flow Management: Account types, when paired with double entry and equity accounts, allow you to develop reports such as profit and loss and more.
• Portfolio Management: Update portfolios instantly, track individual stocks and add supplemental pricing sources at regular intervals.
• Register: Autofill documented transactions, mark transactions as cleared or reconciled and exhibit several accounts on one register.

Limitations

Most ERP solutions have limitations. GnuCash is no exception. These drawbacks include:

• Lacking multi-user functionalities.
• Does not include accounts receivable or billing features.
• Does not offer an app for iOS devices.

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TurboCASH

Another small business solution, TurboCASH, is deployed on-premise and is suitable for accountants, resellers, developers, consultants and more. Its primary industries include government, university and corporate amongst others.

An example of TurboCASH.

Noteworthy Advantages

TurboCASH contains various accessories that set it apart from its competition.

• Pre-Built Templates: Gain pre-built templates for standard use cases, including house flipping, last mile delivery, online education and agriculture processing, amongst others.
• Localization: Leverage more than 20 languages and more than 80 diverse tax regimes.
• PayPal Reports Import: Download PayPal activity reports and import them into spreadsheets. Extract and create new debtor accounts and upload new transactions.
• Bank Statement Import: Import bank statements directly into TurboCASH.
• Customization: Alter themes, languages, sidebars, topbars and more. Pick from more than 17 predefined themes.
• Data Access Control: Utilize the universal data access components (UniDAC) library of components to obtain several databases via Delphi and C++ builder. Work in PostgreSQL and MySQL formats.

Features

User Management

Work with single or various users with the user management attribute. The multi-user systems component enables you to merge with remote databases and obtain access control logins.

Bank Reconciliation

This appliance grants users the ability to match or reconcile their cashbook with statements received from the bank. Reconcile bank accounts before updating or posting payments and receipts journals to your ledger. You may also input all of your bank charges and post or revise batches after performing reconciliations.

Reporting

Utilize TurboCASH’s Reportman report designer to develop custom reports with the reporting module. You may also edit existing reports and layout files or create and edit new reports and layout files. Some statements included in this function are:

• T-ledger reports
• Tax reports
• Debtor reports
• Batch reports
• Ledger reports
• And more!

Additional Accessories

TurboCASH has the majority of common open-source accounting software features, but there are some additional tools to assist in your accounting needs that you might want to take note of.

• Accounts Management: Add up to 999 main accounts and have up to 999 sub-accounts.
• Bill of Materials (BOM): Include other stock items or merchandise containing other stock components or services to your BOM list.
• Budgeting: Record budgets for specific dates and edit budget figures for actual income and expense comparisons.
• Document Processing: Transform invoices into quotes, convert orders to purchases, copy files, adjust accounts, create documents and more.
• Income Statement: Compare actual figures in income statements with those from previous years.

Limitations

TurboCASH comes with a few things to live without. These drawbacks include:

• Lacking project accounting.
• Not handling accounts receivables.
• Lacking apps for iOS and Android devices.

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FrontAccounting

Last but certainly not least, FrontAccounting is an open-source program dedicated to small and medium-sized companies. It has on-premise deployment and is suitable for all industries.

An example of FrontAccounting’s configuration settings.

Noteworthy Advantages

FrontAccounting is equipped with various benefits that keep it ahead of its alternatives.

• Journal Entries: This tool permits the chart of accounts to align with the keyboard entries.
• Manufacturing: Draft bill of materials (BOMs), work center questions and work order entries. You may also include advanced production and assembling capabilities.
• Multi-Currency Support: Gain historical currency rates and leverage multi-currency bank accounts, clients and vendors. For each sales transaction accrued, the currency is linked to the relevant client data.
• Advanced GST/VAT Handling: Choose GST/VAT for customers, suppliers or items. Generate GST/VAT reports for data and outputs/inputs.
• Localization: Access various languages and obtain Jalali and Islamic calendars.
• Access Levels and Adaptations: Establish various companies, create privileges for multi-user access and implement elements for tailoring available menu tabs and applications.

Features

Reporting

Print, email and convert all reports into PDF files with the reporting tool. You may also export reports as Microsoft Excel or OpenOffice Calc files. You may create analyses with different graphs such as horizontal or vertical, dot lines, pies or donuts.

Cash and Bank Management

This module enables you to prepare bank account reconciliations, document bank inquiries and reports, affix several currencies and translate foreign currencies. You may also document payments, deposits and withdrawals in associated accounts.

Additional Accessories

Although FrontAccounting only has half of the standard open-source accounting software features, it comes with additional tools to streamline accounting procedures. These supplementary features are:

• Sales and Accounts Receivable: Work with editable and printable sales documents and transform sales quotes into sales orders.
• Purchases and Accounts Payable: Arrange debit notes and chronicle credit notes from suppliers and even attach company logos to documents.
• Fixed Assets Management: Expedite the disposal and sale of fixed assets and register fixed assets with accounts.
• Inventory and Stocks Management: Affix standard and overhead costs into material prices in addition to gauging item quantities into benchmark units.
• General Ledger: Insert depreciation entries on a period and transfer money from one bank or cash account to another.

Limitations

FrontAccounting has a few limitations. These drawbacks include:

• Lacking the capability to search for customers by address, name or phone number.
• Lacking an application for Android and iOS devices.

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Grand Finale

Picking the right open-source accounting software can be an arduous task. But it’s essential to map out the right tools and requirements needed for your company so you can make the right choice. Your company, clients, partners and accountants will surely thank you for it. Are you in need of more accounting solutions for your business? Check out SelectHub’s in-depth comparison guide for more options.

Which open-source accounting software is your top choice and why? Let us know in the comments!