How to get started with odoo: A step-by-step Guide from Subscription to Basic setup

Every business reaches a point where spreadsheets and disconnected tools are no longer enough. Managing your sales, inventory, accounting, HR, and customer relationships across separate systems creates inefficiency, errors, and wasted time.

Odoo is an all-in-one ERP platform that brings every area of your business into a single, connected system. Whether you are a startup finding your footing or a growing business ready to scale, Odoo is designed to grow with you.

But if you have never used Odoo before, the starting point can feel unclear. Where do you subscribe? What do you set up first? How long does it take before your team can actually start working?

This guide is written specifically for business owners and decision-makers who want a plain-language, step-by-step walkthrough of getting started with Odoo — from choosing the right plan to completing your basic system setup.

Before you purchase anything, take a moment to understand what Odoo offers and what your business truly needs.

Odoo is a modular ERP system. This means you choose the specific applications — called modules — that are relevant to your business. 

Common Odoo modules include:

Sales — Manage quotes, orders, and customer relationships

Purchase — Handle vendor orders and procurement

Inventory — Track stock, warehouses, and fulfillment

Accounting — Invoicing, payments, bank reconciliation, and financial reports

CRM — Manage leads, pipelines, and customer communication

Manufacturing — Production orders, bills of materials, and work centers

HR & Payroll — Employee records, leaves, and payroll processing

Website & eCommerce — Build an online store directly connected to your inventory

Ask yourself these questions before proceeding:

• Which departments will use Odoo?

• How many users will need access?

• Do you need custom features, or will standard Odoo functionality cover your needs?

• Do you prefer a cloud-hosted solution or a self-managed server?

The answers to these questions will directly shape which Odoo edition and hosting option is right for you.

Not sure which edition to choose? Read our detailed comparison of Odoo Community vs Enterprise and Odoo Online vs Odoo.sh vs On-Premise before making a decision.

Odoo comes in two editions, and choosing correctly here will save you time, money, and future headaches.

Odoo Community vs Odoo Enterprise Comparison

For most businesses that are not running a dedicated in-house technical team, Odoo Enterprise is the recommended starting point.

It includes official support, automatic upgrades, a mobile app, and significantly more functionality out of the box.

Odoo Enterprise can be deployed in three ways. Your choice affects how the system is maintained, how much control you have, and what technical resources you need.

Odoo Online (SaaS)

• Fully hosted and managed by Odoo

• No installation or server management required

• Fastest way to get started

• Best for businesses with standard processes and no custom development needs

Odoo.sh (Managed Cloud)

• Hosted on Odoo's cloud platform

• Supports custom modules and development workflows

• Includes staging environments for testing

• Best for growing businesses that need flexibility with managed infrastructure

On-Premise (Self-Hosted)

• Installed on your own servers

• Full control over data, infrastructure, and customization

• Requires dedicated technical resources to manage

• Best for enterprises with specific security, compliance, or integration requirements

For a detailed breakdown of capabilities and trade-offs, see our full guide: Odoo Online vs Odoo.sh vs On-Premise.

Before committing to a plan, it is important to understand how Odoo's pricing works.

The cost structure differs depending on which edition and hosting option you choose.

Odoo Community — Free

Odoo Community is completely free and open-source. There are no licensing fees.

However, the costs you should account for include:

• Server or hosting costs — You need your own infrastructure to run it

• Technical setup and maintenance — Requires in-house or hired technical expertise

• No official support — Community forums are your primary support channel

Odoo Community is best suited for businesses with strong technical resources that want maximum control over their system without licensing costs.

Odoo Online (SaaS) — Subscription per User

Odoo Online is priced on a per-user, per-month basis.

The subscription includes:

• Hosting, maintenance, and automatic upgrades managed by Odoo

• Access to all standard Odoo apps included in your plan

• Official Odoo support

• Automatic backups

Odoo Online pricing varies by region and the number of active users.

You can review current pricing directly on the Odoo pricing page.

Key points to know:

• Pricing is based on the number of users, not individual apps

• Annual billing typically offers a discount over monthly billing

• External users (e.g., portal customers) are not counted as billable users

• The One App Free plan gives unlimited users access to one app group at no cost, forever — not just for early-stage evaluation — but switches you to a paid plan the moment you install an unrelated second app. 

Odoo.sh — Platform Subscription

Odoo.sh pricing is based on the infrastructure resources your project requires, such as the number of workers (processing power), storage capacity, staging environments, and additional resources needed to handle your database size, custom modules, and system workload.

This model suits businesses that need custom development capabilities alongside managed infrastructure.

Odoo.sh pricing includes:

• Managed cloud hosting on Odoo's infrastructure

• Git-based deployment and staging environments

• Automated backups and monitoring

• Support for custom modules and third-party integrations

For current Odoo.sh pricing tiers, visit the Odoo.sh pricing page. Note that in addition to the Odoo.sh platform cost, you still need an Odoo Enterprise subscription for your users.

On-Premise — Enterprise License

For On-Premise deployments, Odoo Enterprise is licensed on a per-user, per-year basis, similar to Odoo Online.

However, instead of paying for hosted infrastructure, you manage your own servers.

Additional costs to plan for with On-Premise:

• Server infrastructure (cloud VM or physical servers)

• System administration and maintenance

• Backup and disaster recovery setup

• SSL certificate and domain management

• Technical team or partner for upgrades

Pricing Comparison at a Glance

Recommended: For most small to mid-sized businesses, Odoo Online offers the most straightforward cost structure with the least operational overhead.

As your business grows and needs more customization, Odoo.sh becomes the natural next step.

Once you have decided on an edition and hosting model, here is how the subscription process works.

4.1 Start with a Free Trial

Odoo offers a 15-day free trial for Odoo Online. You can activate it directly at odoo.com without providing payment information upfront.

This is an excellent way to explore the interface and test the modules relevant to your business before committing.

During the trial, you can:

• Add modules and explore their features

• Create sample data

• Invite team members to test the system

• Get a feel for the interface and workflows

Use this trial period seriously. Have your department heads or key users explore the system and provide feedback before you finalize which modules to subscribe to.

4.2 Select Your Apps and User Count

When you are ready to subscribe, you will be asked to select:

• Number of users who will access the system

• Billing cycle — monthly or annual (annual subscriptions typically offer a discount)

• Hosting plan — Online, Odoo.sh, or On-Premise (as covered in Step 3b above)

Refer to the pricing breakdown in Step 3b of this guide, or visit the Odoo pricing page directly for current rates in your region.

Tip: Start with the core modules your team needs on day one. You can always add more modules later as your needs grow.

Over-subscribing on day one increases cost and complexity during setup.

4.3 Complete the Purchase

Payment is handled through Odoo's secure checkout. You will receive:

• A subscription confirmation email

• Access to your Odoo database (your live environment)

• Access to the Odoo customer portal where you can manage billing, users, and your subscription.

After logging into your new Odoo instance for the first time, the first thing to configure is your company information.

This data flows through to your invoices, purchase orders, reports, and customer-facing documents — so accuracy matters here.

Navigate to:

Settings → General Settings → Companies

Configure the following:

• Company name — Exactly as it appears on your official documents

• Address — Full registered address

• Tax ID / Registration number — Used on invoices and compliance documents

• Company logo — This will appear on all printed and emailed documents

• Currency — Set your primary operating currency

• Fiscal year — Define when your accounting year starts and ends

• Time zone — Critical for scheduled operations and reporting accuracy

Setting Up Your Document Templates

Go to:

First activate Developer Mode (Settings → General Settings → scroll down → Activate the developer mode), then go to Settings → Technical → Reports. 

Here you can customize the layout of your:

• Customer invoices

• Sales quotations

• Purchase orders

• Delivery slips

Odoo provides a standard document template that you can personalize with your logo, company colors, and footer information.

Clean, branded documents leave a professional impression with your clients and suppliers.

With your company setup complete, it is time to activate the modules your team will use.

Navigate to:

Apps (from the main Odoo menu)

Browse or search for the modules you need. To install a module, simply click Install.

Odoo will handle the installation automatically, including any required dependencies.

Recommended first modules to install for most businesses:

Important: Only install what you need now.

Every installed module adds configuration requirements. A focused setup is easier to manage, train users on, and maintain.

One of the most important setup steps is defining who can access what in your system.

Navigate to:

Settings → Users & Companies → Users

Adding Users

Click New to add each team member who will use Odoo.

Enter:

• Full name

• Email address (this will be their login)

• Access rights for each module

Odoo will send an invitation email to each new user with their login credentials.

Understanding Access Levels

Odoo uses a role-based access system. For each module, you can assign:

Best practice: Apply the principle of least privilege.

Give users only the access they need to do their job. This improves security and reduces the risk of accidental changes to important records.

Setting Up User Groups

For larger teams, consider using user groups to manage access permissions in bulk.

For example, you can create a "Sales Team" group with defined access levels and add all sales staff to that group, rather than configuring each user individually.

Master data is the foundational information your system needs to operate — your products, customers, vendors, and financial accounts.

Setting this up correctly from the beginning will save you significant time and prevent errors later.

8.1 Chart of Accounts

Navigate to:

Accounting → Configuration → Chart of Accounts

Odoo automatically generates a chart of accounts based on your country's accounting standards when you install the Accounting module.

Review the default accounts and adjust them to match your business structure. If you are unsure, consult with your accountant before making changes here.

8.2 Products and Services

Navigate to:

Inventory / Sales → Products

Create entries for every product or service your business sells or purchases.

For each product, define:

• Product name and reference code

• Product type (storable, consumable, or service)

• Sales price and cost price

• Tax configuration (GST, VAT, or applicable local taxes)

• Unit of measure

• Product category (for reporting and inventory grouping)

If you have a large product catalog, Odoo supports bulk import via Excel/CSV files.

This can save significant time during initial setup.

8.3 Customers and Vendors

Navigate to:

Contacts

Import or manually create records for your existing customers and suppliers.

For each contact, define:

• Company or individual name

• Contact details (address, email, phone)

• Tax ID (important for B2B invoicing)

• Payment terms (e.g., Net 30, immediate payment)

• Price list (if you apply different pricing for different customer groups)

Again, Odoo supports bulk import from spreadsheets — if you have an existing customer database, use the import tool to avoid manual entry.

8.4 Bank Accounts

Navigate to:

Accounting → Configuration → Bank Accounts

Add your business bank accounts.

If you are using Odoo Online or Odoo.sh, you may have the option to connect your bank account directly for automatic bank feed synchronization, which dramatically reduces manual reconciliation work.

With your master data in place, configure the key workflows for your team.

Sales Workflow:

• Set up a sales team and assign members

• Configure your default quotation template

• Define your sales stages (quotation → order confirmed → invoiced)

Purchase Workflow:

• Set minimum order quantities if applicable

• Define vendor lead times for key products

• Configure bill matching preferences

Inventory Workflow:

• Set your default warehouse location

• Configure product routes (receive, store, ship)

• Define reordering rules if you want automatic replenishment

Accounting Workflow:

• Set your bank statement import method

• Configure payment methods (cash, bank transfer, card)

• Set up tax positions for your local tax requirements

This step is where many businesses underinvest — and it shows.

No matter how well-configured your Odoo system is, your team needs to know how to use it.

Plan for:

Role-based training sessions

Sales team, accounting team, and operations team have very different day-to-day workflows.

Train them separately and focus on what is relevant to their role.

Creating test data

Ask users to practice with sample transactions before they touch real data.

Writing internal SOPs

Document how your team should use the system for common tasks, such as:

• Raising a quotation

• Processing a purchase order

• Reconciling a bank statement

Designating a system administrator

Someone in your team should own the Odoo system — managing users, troubleshooting minor issues, and being the first point of contact before escalating to your Odoo partner.

A well-prepared team reduces errors, increases adoption, and gets you to productivity faster.

What Comes Next?

Getting started with Odoo is a journey, not a one-time task.

Once your core system is live and your team is using it, consider:

• Adding more modules as your needs grow (eCommerce, Marketing, Helpdesk, etc.)

• Exploring Odoo Studio for no-code customization of forms, workflows, and reports

• Integrating third-party tools such as payment gateways, logistics providers, and communication platforms

• Reviewing your data regularly to ensure accuracy and cleanliness as your business scales

Getting started with Odoo does not have to be overwhelming.

By approaching the setup systematically — choosing the right plan, configuring your company correctly, setting up your users and master data, and training your team — you create a foundation that your business can build on for years to come.

The most important mindset shift is to treat your Odoo implementation as a business project, not just a software installation.

The more thoughtfully you plan it, the more value you will extract from day one.