For those who have a small or medium-sized business, the search for the right management software is always long and risky. 

In fact, unlike large companies, the ROI of management software is often much more significant for smaller businesses: a small defect is enough to slow down the entire workflow, or to keep employees glued to their desks, or worse, to create rambling and useless business analytics. 

Do you need to spend a lot of money to have good management software?

Do you think these defects cannot be avoided without spending a fortune?

You're wrong!

There are several free and open source management software that are truly complete and professional, and which, in terms of customization, have nothing to envy from the big names in the sector! 

This allows many free and open source management software to become the best allies for small and medium-sized businesses, obviously if accompanied by a developer capable of customizing the software to the company's needs. 

So, the questions we will answer in this article are: 

1. What should you consider before choosing management software? 
2. What are the most relevant technical differences for businesses? 

We will conclude with our top 5 of the best free management software in 2021 for small and medium-sized businesses and startups. 

1 - The aspects to consider when choosing between free management software 

It is clear that an accounting and invoicing management software does not have to have the same features as a warehouse management software. This is a rather banal consideration, but in reality if you have done an internet search in English you may have developed a certain confusion because of all the acronyms that are used in association with management software. 

Some examples? Let's take the two main English translations of management software, namely ERP and CRM. 

The Difference Between ERP and CRM 

ERP stands for Enterprise Resource Planning, and is the closest English translation to our concept of management software. An ERP deals with, for example, production, personnel management, sales management or warehouse management. 

CRM instead stands for Customer Relationship Management and applies to business sectors that deal with sales: care from the first contact with the customer, i.e. the acquisition, to the actual purchase.

A good CRM is also able to forecast revenues and provide answers regarding the direction of the marketing strategy. 

It is clear that a complete ERP must also contain a CRM, but there may be companies that only use a CRM and invoicing software, for example, without needing to turn to a complete management software.  

So, once you have selected your company's needs, you can move on to the second phase of choosing the management system. 

2) The most important technical differences between management software 

It is essential to evaluate whether you want a web-based or cloud-based ERP or finally client-server. 

For some companies it may be essential to have a multi-platform, while others may only need Windows, for example. 

If you have internal developers or a trusted software house, the advice could be to choose a free and open source management software: in the latter case, you need to consider the language that your developer will use to improve the software and tailor it to the needs of your company. 

If you don't know much about the jargon, our advice is to contact a trusted software house and explain your needs directly to them. 

3) Our top seven free management software

After careful research into the panorama of free and open source management software, we have selected 5 that we have evaluated based on:

- functionality

- no bugs

- speed

- adaptability to different platforms. 

Here's our list! 

1) dolibarr 

Dolibarr is a management software that covers many different functions, from accounting to production, with integrated CRM management. It is an excellent solution for small and medium businesses and for freelancers.  

Features:

• Multi-platform 
• written in PHP and with PostgreSQL, MAriaDB and MySQL databases 
• Multiuser 
• Multifunction: in fact, it deals with sales, HR, logistics, warehouse, invoicing, accounting, production. You can choose to hide the functions that do not interest you 
• Extremely intuitive and easy to use 
• Available in Italian 

2) Odoo

Odoo is an open source ERP (Enterprise Resource Planning) platform that offers a complete suite of business applications for managing sales, purchasing, accounting, inventory, human resources and more. Its modular nature and wide range of features make it a flexible tool suitable for small, medium and large businesses.

Why is Odoo open source?

Odoo was born with an open source philosophy to guarantee transparency, security and customization. This approach allows developers to contribute to the improvement of the platform and companies to adapt it to their needs without proprietary license constraints. The Community version of Odoo is free, while the Enterprise version offers advanced features and dedicated support.

Odoo's main features

Odoo offers an integrated ecosystem of applications to optimize every aspect of business management, including:

•CRM & Sales: opportunity management, quotes and sales pipeline.

•Billing and Accounting: accounting automation with advanced reporting.

•Warehouse and Logistics: stock traceability and automation of logistics processes.

•E-commerce and Marketing: website creation, email marketing and online order management.

•Human resources: employee management, payroll and recruitment.

Odoo Cloud: The SaaS Solution

For those who do not want to manage an IT infrastructure, Odoo offers a cloud version based on SaaS (Software as a Service). This solution allows you to access the platform from any device, without worrying about updates, maintenance or data security. It is ideal for companies that want a management software ready to use and always updated.

Thanks to its versatility, Odoo is an excellent choice for those looking for a powerful, scalable ERP without the high costs of proprietary solutions.

3) ERPNext

ERPNext is an open source ERP (Enterprise Resource Planning) software designed to help companies of all sizes efficiently manage their business processes. Thanks to its modular structure and ease of customization, ERPNext is positioned as one of the best open source alternatives to proprietary management systems such as SAP, Microsoft Dynamics and Odoo.

Why is ERPNext open source?

ERPNext is released under license GPL v3, which means that its source code is freely accessible, modifiable and distributable. This guarantees transparency, security and flexibility, allowing companies to adapt the software to their needs without expensive licensing restrictions.

One of the strengths of ERPNext compared to other open source ERPs is the fact that it is completely free , without an Enterprise version with locked features. In addition, the open source community is very active and regularly contributes to the development of the software, improving its features and security.

The main features of ERPNext

ERPNext offers a complete suite of business management tools, with a particular focus on accounting, warehouse and production. Among the most important features we find:

Accounting and Financial Management

•Multi-currency and multi-company support

•Management of general accounting, balance sheets and financial statements

•Electronic invoicing and payment gateway integration

•Tax management and automatic VAT calculation

•Automation of accounts payable and receivable

CRM & Sales

•Management of leads, opportunities and sales pipeline

•Generation of quotes and sales orders

•Sales automation with customizable workflows

•Integration with e-commerce and payment platforms

Warehouse and Logistics

•Real-time stock tracking

•Multi-warehouse management with automated transfers

•Support for batches and serial numbers

•Advanced inventory movement and value reporting

Production and Order Management

•Bill of Materials (BOM) and production cycles

•Demand-driven production planning

•Materials and supplies management

•Real-time monitoring of production activities

‍ Human Resources Management

•Employee registry and attendance management

•Automatic generation of pay slips

•Performance evaluation system

•Form for managing holidays and absences

E-commerce and Point of Sale (POS)

•Integration with online stores

•Integrated POS for retail sales

•Automatic synchronization of orders with the warehouse

•Automatic generation of invoices for each sale

ERPNext Cloud: The SaaS Solution for Businesses

For companies that prefer a ready-to-use ERP software without the need to manage an IT infrastructure, ERPNext offers a version Cloud SaaS hosted on the servers of Frappe Technologies.

Benefits of the cloud version include:

✅ Access from any device with an internet connection

✅ Automatic updates maintenance-free

✅ Secure backups and redundancy to protect company data

✅ Scalability to adapt to growing business needs

However, ERPNext can also be installed on-premise on corporate servers, offering businesses maximum freedom of customization and control over data.

ERPNext: An Open Source ERP Solution Without Compromise

ERPNext stands out in the open source ERP landscape thanks to its completeness, transparency and flexibility. Unlike other solutions like Odoo, which offers a paid Enterprise version with advanced features, ERPNext maintains all features available for free.

Thanks to its open source architecture, its ease of use and the possibility of using it in the cloud or on-premise, ERPNext represents one of the best ERP solutions for companies that want a management software. powerful, scalable and with no hidden costs.

3) Apache OFBiz 

It is a product of the Apache Software Foundation, is open source and can run on different platforms. 

Features 

• Great interface for monitoring business processes
• Cloud-based 
• Written in Derby, XML, Java, Apache FreeMarket, Groovy 
• It is a completely scalable software: even if yours is a small business and you plan to grow, Apache of Biz will grow with you.  
• The software architecture of the program is excellent and is based on the service 
• It is a management software widely used by service companies and small and medium-sized businesses in general. 
• supports both a web app-based operating system and cloud-based development 
• requires you to have Java 2 SDK to install on your device.

4) GIM Free 

Although not as complete as the previous ones, GIM in its free version is an excellent free management software capable of managing customer and supplier records, accounting and substitute archiving in compliance with the law.  

Features 

• It comes with excellent explanatory videos inside that illustrate how to use the software 
• allows you to generate DDT, electronic invoices to private individuals and to the PA, credit notes and similar 
• Works only on Windows 
• it is not customizable 
• It is the quickest to install and essential, as it works.

5) Blueseer 

Blueseer is great for small and medium-sized businesses that need to manage production, warehouse and transportation with software. It is a free and open source software that works on Windows, Mac and Linux, but unfortunately it is only available in English. 

Features 

• highly customizable 
• Multi-platform 
• multi-user 
• facilitates inventory controls, warehouse management
• facilitates the electronic transmission of data, i.e. the direct exchange of electronic data from one computer to another, which is very useful between trading partners (the so-called EDI functionality). 
• It is written in Java, MySQL and SQLite. 

5) Net Suite ERP 

This free management software is cloud-hosted and API-based and has the dual advantage of being able to be used on different platforms, but also of being completely scalable: it is used mainly by large companies, but it is also very well suited to SMEs and startups. 

It mainly concerns order management, financial management, accounting, invoicing and revenue management. 

Features 

• can be used on Windows, Mac, iPhone, Android, and web-based platforms 
• It's in the cloud 
• It offers a great data visualization and analytics tool 
• It is the best free management software on the market for managing and planning resources and processes. 
• There is also a premium version.

Management Software Comparison: Which is Best for You?

1️⃣ Dolibarr – Best for SMBs and startups with basic needs

•Simple and lightweight ERP and CRM, ideal for small businesses.

•Modular and easy to install, with intuitive interface.

•Good for customer management, invoicing and warehouse, but with limited functionality compared to other solutions.

2️⃣ Odoo – Best for growing businesses that want flexibility

•Wide range of modules (CRM, accounting, e-commerce, manufacturing, marketing).

•Modern and easy to use UI.

• Version Community (free) vs. Enterprise (paid) with more features.

•Strong developer ecosystem and add-on modules.

3️⃣ ERPNext – Best for companies that want a complete open source ERP with no hidden costs

•100% open source, no paid licenses.

•Extended functionality for accounting, production, warehouse and HR.

•Simple and clean interface, but less intuitive than Odoo.

•Ideal for companies that want a transparent and scalable ERP.

4️⃣ Apache OFBiz – Best for companies that want a highly customizable ERP

•Modular and completely open source ERP framework.

•More of an “ERP toolkit” than a ready-to-use product.

•Requires developers to adapt to business needs.

•Great for companies that want maximum freedom of customization.

5️⃣ Blueseer – Best for manufacturing companies looking for a free ERP

•Specialized for manufacturing and supply chain companies.

•100% free, no paid plans.

•More technical and with a less user-friendly interface.

•Ideal for manufacturing companies that want an ERP without licensing costs.

6️⃣ NetSuite ERP – Best for large companies and multinationals that want a cloud-based ERP

•Highly scalable ERP SaaS (Software-as-a-Service).

•Complete with advanced accounting, financial management, CRM, supply chain.

•Requires a high budget, suitable for large companies.

•Excellent for businesses with needs global scalability.

Comparative table

Our conclusions:

• If you are looking for a simple and free ERP, dolibarr It is a good choice for SMEs.

• If you want a complete open source ERP without licensing costs, ERPNext It's a solid solution.

• If you need a flexible ERP with a large ecosystem, Odoo It's a great option.

• If your company needs a highly customizable solution, Apache OFBiz it's perfect.

•If you are a manufacturing company, Blueseer It is one of the few dedicated free options.

• If you have a large company and are looking for a scalable cloud solution, Net Suite ERP is your best choice.

Ultimately, therefore, the choice depends on the company size, budget and level of customization required. If you need customized management software but don't want to spend a fortune Contact Pizero Design and tell us your needs!