Odoo vs 1C: Choosing the ERP for Ukrainian Businesses  

Risks of Using 1C Software in Ukraine

If you are faced with the choice of software for your company or are looking for a quality alternative to 1C, keep in mind that using 1C software in Ukraine can be dangerous for several reasons.

National Security

• Russian origin: 1C is a Russian company, and using its products may create risks of data leakage, especially when dealing with confidential information.
• Control from Russia: There are concerns that Russian intelligence agencies could have access to the information processed through 1C software, posing a threat to both state and commercial structures.

The owner of the Russian company "1C", Boris Nuraliev, has openly pro-Putin views: "There have been cases of information being transferred from '1C' outside Russia. The main issue is that the platform is developed in Russia and is not controlled by anyone. There is a possibility that the developer will shut down the main financial system for 80% of Ukrainian businesses." DOU 

Sanctions and Legal Restrictions

1. • NSDC sanctions: In 2017, the National Security and Defense Council of Ukraine imposed sanctions on Russian IT companies, including 1C. Using this software in Ukraine may violate the law.
   • Possible fines: The use of prohibited software can lead to financial penalties for businesses and even confiscation of equipment during inspections.

In 2020, 1C was added to the list of Russian software companies under sanctions in Ukraine.

Reputational Risks

• Support for the Russian economy: Purchasing licenses or maintaining 1C financially supports the Russian economy, so companies using this software are indirectly funding the war in Ukraine.

Alternatives and Transition

• Migration to other solutions: Many Ukrainian companies have already switched to alternative accounting programs such as BAS (Business Automation Software).
  
  

Be cautious, though: BAS was created on the technological platform of 1C. Although it is now an independent product, Pavlo Zaytsev, head of the "Eastern Ukrainian Tech Cluster", notes that the source codes of "1C" and BAS belong to a russian company. BAS is essentially a clone of 1C that started to be promoted as its alternative after 2014.

"After the 2017 sanctions on ‘Eurosoftprom’, the supplier of the '1C: Enterprise' product in Ukraine, BAS became the successor to their technological solutions in Ukraine, supported by the Ukrainian 'Business Automation Union'. The Union was registered in July 2017, after sanctions had already been imposed on the Russian company's subsidiary in Ukraine." DOU

Therefore, using 1C in Ukraine carries serious risks related to national security, legal issues, and reputation. To avoid these risks, it is advisable to consider alternative software solutions that comply with Ukrainian legislation and international security standards.

Top alternative to 1C for ukrainian businesses

Choosing software as an alternative to 1C may seem like a challenging task. In reality, 1C's functionality is tailored to the needs of Ukrainian businesses, making it a practical solution for quickly addressing software requirements. Additionally, considering that Ukrainian accountants are already familiar with 1C, there is no need to spend resources on training or overcoming resistance to learning new software, making 1C seem like an unbeatable choice.

However, when searching for alternatives to 1C with similar functionality, we find that the market does not offer any solutions with the same logic and working principles. Most well-known business management software systems have different architectures and workflows. They do not allow the creation of reports in the same way as 1C, nor the ability to make changes to past dates, and other features that Ukrainian accountants working with 1C are accustomed to.

Yet, when we take a deeper look into Odoo's functionality, we discover that everything 1C offers can be implemented here as well. With Odoo, you get the same features—and more — because Odoo allows you to build your business using the best global management practices.

Therefore, the choice of an alternative to 1C should not be based solely on a comparison of functionalities, but on the advantages the company gains by choosing different software. One of the most important advantages is selecting software that is an investment in the future. With Odoo, your company will not only handle accounting or inventory management efficiently, but also build a comprehensive business management ecosystem where all processes are transparent and controlled.

Consider Odoo ERP as an alternative to 1C and gain more than just a well-organized and systematically structured business. Both Odoo and 1C are powerful Enterprise Resource Planning (ERP) systems, but they have significant differences in functionality, customization options, industry specialization, and geographic reach. Here is a comparison of their functionalities:

Core Functionality Comparison

Key Functional Differences

Implementation and Support

• Odoo: Easier and faster to implement, especially for companies using standard modules. It has a large community and a network of partners for support.
• 1C: Implementation is more complex and often requires specialized consultants, especially for businesses with unique requirements. The partner network is primarily focused on Russian-speaking regions.

Integration and Ecosystem

• Odoo: Has a large ecosystem of third-party applications and easily integrates with various tools such as eCommerce platforms, payment gateways, and marketing software.
• 1C: Also supports integration, but it is more difficult to set up with international tools. The ecosystem is focused on the Russian market and surrounding countries.

How to ensure that software is secure? Another drawback of 1C

When choosing software, it is very important to pay attention to the list of security requirements. Remember that information security is one of the top priorities in business today.

Choosing a reliable provider

Use software from companies with a proven reputation and compliance with international security standards.

We cannot be sure of the 1C provider due to the possible connections of the company with Russian security services, which may have access to the code and collect information for their own purposes. On the other hand, the code of Odoo is open, and you can be confident in its integrity and quality.

Regular updates

Timely update software to eliminate vulnerabilities.

1C updates are no longer available for the Ukrainian market due to the ban on the use of Russian-made software, which was introduced in Ukraine in 2017. This decision was made as part of sanctions against Russian companies due to national security threats.

Backup

Regularly create backups of data and store them in a secure location.

Since, due to sanctions, official support, updates, and consultations are no longer available, if errors occur during backup or data recovery, you will not be able to contact official support.

Access control

Restrict access to the software to authorized users only.

In this case, with 1C, we encounter another problem. 1C allows creating different accounts with varying levels of access. However, if a company uses the file version of 1C (rather than the client-server version), access to the database may be limited to one user, since the file-based database does not support simultaneous work by multiple users, or the database file is stored on one person's computer. This complicates collaboration and creates a risk of data loss in the event of a hardware failure. Such problems will not occur with Odoo.

Use multi-factor authentication

Data should be encrypted both during transmission and storage.

In the standard version of 1C:Enterprise, multi-factor authentication (MFA) is not available as a built-in feature. The security system in 1C focuses on basic authentication methods.

Data encryption

Data should be encrypted both during transmission and while stored.

Remember, we do not know what is inside the 1C code and can assume that Russian security services may have access to the encryption.

Challenges of implementing Odoo

When choosing Odoo for your company, you are not simply replacing 1C. With Odoo, you must be ready for the fact that its operating logic involves improving the entire ecosystem of your business. Regardless of the size of your company, the basic functionality of Odoo will provide you with transparency, ease of communication, and opportunities to implement your tasks through virtually unlimited customization options. Odoo is an ERP system where, through a subscription, you will get all the necessary applications that will keep your business organized, provide you with up-to-date data on all processes, and allow you to see whether your business is profitable.

Odoo will replace many different applications for you:

Everything your business needs in one interface with easy and intuitive access. Source

When setting up Odoo from scratch, you'll find its logic intuitive and user-friendly, as it's designed to meet the demands of modern business operations.

While transitioning from 1C to Odoo, you won’t get the same accounting format based on Ukrainian standards. However, in terms of functionality, Odoo will offer you the same capabilities and more. The key difference is that your business will need to adopt global accounting standards, which differ slightly from the Ukrainian ones.

Thanks to its high level of customization, Odoo allows you to implement all the necessary features to suit your business needs.

And, additionally, you will enjoy the following advantages:

• The ability to expand as the company grows.
• No need for constant updates.
• The ability to customize the system internally to meet your needs.
• And most importantly – the entire company works in one system (production, sales, accounting, warehouse management, marketing, etc.).

Pricing

1C: Pricing is complex and often requires custom proposals based on the business's needs. The cost includes licenses, implementation, and support.

Odoo: Odoo offers a choice between a corporate version, where the price depends on the number of users and modules, and a free version. This pricing model is transparent and suitable for any business.

Ask our specialists to calculate the Odoo price for your business.

The corporate version of Odoo is advantageous due to the simplicity of cost calculation and its wide range of business applications. However, since Odoo’s business management system is built according to global standards, you won’t find pre-configured solutions for Ukrainian accounting. Your business will need to adapt to global standards or order customization.

The Community version of Odoo is free, and its advantage is that you can build the system you need without any limitations. Another benefit of this version is the free modules tailored to the needs of Ukrainian accounting, such as the Ukrainian chart of accounts and payroll processing. As a result, with implementation and development, you'll get a fully functional system without the need for constant updates or financial investments.

Conclusion

Choosing software to manage your business today is not just a technical decision, but a strategic move that impacts financial stability, data security, and the company’s reputation. Using russian software, such as 1C, in the current reality is not only risky but also morally unacceptable. Supporting a product from a country that is waging war against us, destroying ukrainian cities, and taking the lives of many people is irresponsible and intolerable. Transitioning to other solutions requires time, resources, and effort, but it is a matter of honor, conscience, and strategic vision.

It is clear that Ukraine’s future lies in Europe. Our businesses must already adapt to European standards of management, reporting, and accounting. That is why transitioning to modern ERP systems like Odoo is not only a practical step but also an investment in the future.

Implementing Odoo allows businesses to operate according to European rules, build a reliable and efficient management system, and integrate into global markets. This is a decision that will not only help businesses survive in difficult times but also become stronger and more competitive on the path to a shared European future.