What is open source accounting software?
Open source accounting software is accounting software developed with source code that is “open” to use and modify. Depending on the license used to distribute the software, this generally means the code can be inspected, changed and enhanced to create a more customized software product, as well as updated for security fixes and preventions.
It’s important to note that once the code has been customized, it’s not necessarily considered to be “open” for viewing or modification by others any more, unless the enterprise or developer(s) who did the customization decide they want it to be.
In the context of accounting, open source software provides businesses (and individuals) with the accounting tools they need to manage their financial transactions, generate reports, handle invoicing, track expenses, and ensure compliance with tax regulations.
What is the best open source accounting software?
The best open source accounting solution will depend on the user and what they are looking for. Generally speaking, there’s only so much innovation needed when it comes to accounting, since the profession itself hasn’t changed in any significant way for a long time.
Because of this, the primary advantage of going open source for your accounting needs will typically be for two reasons: absence of recurring license fees, and / or better supply chain visibility through system integration.
OFBiz™ accounting software
In an accounting capacity, OFBiz really shines for its ability to track all transactional accounting within the supply chain. It has a full general ledger and can integrate with the CFO’s accounting package of choice.
Aside from a standard general ledger, the OFBiz accounting module also includes:
- The ability to support multiple organizations, account hierarchies and segmentation
- Accounts receivable / payable, invoices, payments, statements, and aging
- Agreement contracts and credit management
- Asset / budget management
- Payment gateways and processing
- Financial reporting
- Comes out of the box fully integrated with order management, inventory, purchasing and manufacturing
OFBiz gives visibility into the supply chain from the accounting side in real time, and in our experience is best used in an accounting scenario where that’s the goal / need. Businesses that can really benefit from this visibility include manufacturing, e-commerce, and retail, where the OFBiz accounting module can help create a more complete and readily available financial picture.
Conclusion
While one of the main benefits of open source software in general is the ability to customize the system, when it comes to OFBiz, open source, and accounting software, the main benefit is the ability to augment financial visibility through system integration.
In the right use cases, open source accounting software can help create smooth running processes, better system-wide connection, and more complete financial information tracking within an organization.
