What Odoo Accounting Can Do For Your Business
software can revolutionize businesses – saving time and money while freeing up resources for more important work. It’s something we’ve always believed, and it’s confirmed by financial directors and Accountants of SMEs and big-multinational companies
In particular, cloud-based software can help accountants save up to three hours a day, ensuring better value for their clients. Can cloud-based Odoo accounting help your firm? definitely, Yes.
For Tanzanian businesses and entrepreneurs, you can consult Singo Africa Limited, an official Odoo partner to help you implementing your Odoo instance in few days and be ready to grow your business with beautiful accounting software.
Here is what Odoo accounting can do for your business:-
Odoo accounting process : From customer invoice to payment collection
Odoo 12 accounting support different types of invoicing and payment workflows from which you can select the one which suits your business.
Invoice creation: From sales orders, purchase orders etc. we can manually generate draft invoices. A customer shall be provided with an invoice having all necessary information. Now we will see different areas of invoicing;
Draft invoices: The invoices created by the system which are set to draft state are called draft invoices. These are invalidated and don't have any impact on the system.
Open invoices: Various details like price, quantity, dates, parties involved, tax details etc. will be there on an invoice. Now when an invoice is ready you can validate it, then the draft invoice will be changed to open invoice. A unique number will be provided by Odoo once the invoice is validated.
Along with these accounting entries are also automatically created.
1. Sending invoice to the customer: After validating the invoice you can send it to the customer through email.
Payment: When the account entry and payment entry are reconciled Odoo will consider the invoice as paid. If reconciliation doesn’t happen invoice will still be in the open state.
2. Partial payment through bank statement: The bank statements can be either entered manually or be imported from a CSV file. Also, it can be entered according to the accounts localization.
3. Reconcile: Next step is the reconciliation step.
Mass reconciliation and individual reconciliation are possible in Odoo 12. Once reconciliation is done the invoice will display “you have outstanding payments for this customer. You can reconcile them to pay the invoice”.
Once you apply for the payment it will be added along with the invoice.
Payment follow up: Tracking the payment and keeping a regular follow up is always necessary since each customer behaves differently. In case of overdue and all, you can take necessary actions using Odoo 12 accounting. In the case of overdue, you can go to customer record and access the overdue payments. There you can notice the follow-up message and invoices which are overdue.
Customer ageing report: To know about customer credit issues and plan the work accordingly the customer ageing report can be made use of.
Profit and loss: The details about the revenue and expense can be accessed from profit and loss statements. This gives you a clear idea about the present situation of your business.
Balance sheet: All the details regarding liabilities, assets, and equity of a company can be viewed from the balance sheet.
From vendor bill to payment
You can pay vendors for the amount which they require using Odoo 12. For this, you have to register to vendor bills in Odoo.
Now we can see the various steps of vendor bill payment;
Recording new vendor bill: To record a vendor bill, go to the accounting application. From there select purchases -> vendor bills. The new bill feature on accounting dashboard can be used as an alternative.
2. Validated vendor bill: After the vendor bill gets validated, based on the invoice, a journal entry too will be created.
3. Paying a bill: By clicking on register a payment you can create the payment for open vendor bill. Now select the payment method and the amount to pay. All the other remaining balance of bill will be proposed by Odoo. The vendor invoice number will be set as a reference in the memo field.
4. Reporting: The aged payable balance can be used to get a list of open vendor bills and their due dates. This can be accessed from the reporting menu.
With all these features, Odoo 12 accounting software is a total solution for all the account related activities. With the use of Odoo 12 accounting software, an error-free and more efficient account system are guaranteed for your business.