Almost every business owner uses Tally or Odoo for better management of their business. Tally is a familiar name, and companies have been using it for a very long time. But recently, Odoo is arising as a beneficial tool for most of the sectors.
So, what is Odoo? It is an open-source ERP with numerous modules for varied sectors. It has more than 15000 domains for trading, manufacturing, e-commerce, accounts, finance and many more business and industrial segments. All the modules provided by Odoo are ready to use. At the same time, Tally is an advanced software specific for accounting. It allows users to manage their sales, purchases and other finances.
Focusing only on accounts and finance management can only boost the business up to a certain level. Hence in order to manage the entire organization efficiently, proper ERP software is required. It is a fully integrated software connecting all the business needs in a single modular solution. Accounts, finance, human resource management, customer relationship management, manufacturing, warehouse management all can be integrated by ERP. Hence Odoo being an ERP software works better for businesses.
The credibility of Odoo is compelling most of the businesses and companies to shift from Tally towards it. But most of the financers and accountants are not familiar with Odoo and its mechanism. Working with Tally for so many years have made them used to the software, and thus they are reluctant to change.
The major reasons for the opposition are:
1. Changes in the terms
Those who are new to Odoo may face some difficulty and confusion in operating the software. Odoo is a European ERP software, and Tally is an Indian software that leads to the use of different terms. For instance, Odoo uses the terms like ‘Journal’ and ‘Journal Types’ instead of ‘Voucher’ and ‘Voucher Types’. So, this creates confusion for Tally users.
2. Changes in data entry
The data entry in both the software, Tally and Odoo, is way different. Let us see some of their major differences to compare the software:
- In Tally, ledgers are created under the Sundry Creditor or Debtor account group for each supplier and customer. But in Odoo, different options are present to form suppliers and customers.
- In Odoo, the same payable and receivable ledgers can be formed for all the suppliers or customers; it is not necessary to form separate ledgers.
- Tally uses the vouchers like Contra, Payment, Receipt Journal etc. On the contrary, in Odoo, the supplier and customer-related menus are represented under the ‘Purchase’ and ‘Sales’ options.
- The “Receipt Voucher” and “Customer Payment” are respectively used by Tally and Odoo for receipt records.
- Odoo has Cash and Bank Register instead of Contra voucher. Tally enters the opening balance in the ledger creation window, and in Odoo, it is done by creating a journal entry.
- On saving each voucher in Tally, it affects the account. But Odoo saves the draft at each stage. For the Journal entry, the draft affects the accounts only after posting.
- Tally provides only bank reconciliation by entering the dates of all entries into the system. In contrast, Odoo offers payment matching and bank statement reconciliation and auto-reconciliation too.
Overall, Odoo has proven to be more beneficial than Tally. But since Tally is advanced accounting software, it has few more tools for accounts and finance.
Odoo can be differentiated into two versions; Enterprise and Community Version. The enterprise versions have more dynamic features than the community version. Companies like Bonza Pro Technologies is a learning partner for Odoo and provides developed options in the community version itself.