Odoo Accounting

Odoo is a versatile ERP that covers various aspects of business management, including accounting. Its accounting module offers a powerful solution to automate and simplify your financial operations. Integrated with other Odoo modules, it facilitates account management, payment tracking and much more for smooth and efficient accounting. Discover the main features of Odoo accounting software and how they can optimize your company’s financial management.

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What is Odoo ?

Odoo is an ERP software that covers many different areas for managing a business. With Odoo, you can handle various aspects of your enterprise, including Sales, Invoicing, Accounting, Inventory, Purchasing, HR, Maintenance, Repairs, Subscriptions, Rentals, Point of Sale, E-commerce, CRM, Projects, Manufacturing, PLM, Helpdesk, Field Services, Social Marketing, and Marketing Automation.

Odoo Accounting is seamlessly integrated with all the other modules within Odoo, automatically generating much of the accounting data for you. This integration ensures a streamlined workflow and reduces the need for manual data entry, allowing for more efficient financial management.

Odoo accounting software's features

Here is the list of Odoo's key features for your accounting:

Accounts receivable

Easily create invoices: You can easily create customer invoices directly from the Odoo Accounting module or from a Purchase Order. Odoo will manage taxes, payment terms, discounts, and price lists, making billing simple for your business.

Set up advanced payment terms: You can create advanced payment conditions, such as installment payments with varying deadlines.

Easy payment reconciliation: You can easily create a payment directly on customer invoices or reconcile payments received from your bank statement. This process is straightforward and will save you a lot of time.

Receive payments

Online payments: We can set up your payment processor so that your customers can pay online directly.

Aging accounts receivable: With the aging balance, you have a clear and precise view of your overdue payments.

Tracking: You can configure your tracking flow, and the system will guide you through the follow-up process. You can also automate this process, allowing Odoo to send follow-up emails.

Customer portal: Your customers can access their invoices, check their status, and even pay directly online.

Accounts payable

Automatic supplier invoice filling: Odoo Accounting will digitize your supplier invoices and automatically extract information using advanced artificial intelligence.

Employee expenses: Employees can create expense reports, which will go through an approval process, allowing you to make payments easily afterward.

Control supplier invoices: Odoo Accounting is linked to the Odoo Purchasing application. You can verify the supplier invoice received against the purchase order and check the actual quantity received with the delivery note.

Pay your invoices

Automated transfers: You can pay your supplier invoices and easily generate a payment file with all the scheduled payment dates.

Print checks: You can print your checks directly from Odoo Accounting.

Banking and cash management

Bank Synchronization: Your bank statements are imported directly into Odoo Accounting, allowing you to reconcile your accounts easily.

Cash Registers: You can track all your cash transactions with opening and closing balances.

Reconciliation

Reconciliation template: You can create reconciliation templates that will suggest how to reconcile. You can even automate your reconciliation process. 

Outstanding payments: You can easily track your payments and reconcile them with your bank statements. You can monitor your outstanding payments at any time.

Multi Multi-Currency and Multi-Company

Multi-currency: Odoo supports all currencies and allows you to connect to multiple sources for daily updated rates. Odoo Accounting will automatically handle your transactions in different currencies and record any exchange rate differences. 

Multi-company: You can integrate all your subsidiaries into the same accounting software. You can create a consolidated report even if the chart of accounts differs for each company. Odoo Accounting can also automate your intercompany transactions with specific rules, allowing you to manage all your operations in one place.

Legal reporting

Profit & loss: You can manage your income statement in real time. Odoo Accounting can also help you set up your accounting to generate accurate monthly profit and loss reports.

General ledger: You will have access to a powerful general ledger that is easy to navigate. 

Tax report: You can prepare your tax declaration based on your country. Managing your sales tax is straightforward. 

Cash flow statement: You can easily track your cash flow. 

Balance sheet: There is no need to close and open your fiscal years. Your balance sheet report is easy to navigate and search.

Subscriptions

Recurring invoices: Manage subscriptions and recurring revenue. The recurring invoice is automatically generated and sent to the customer. You can even save their credit card information for direct billing. 

Deferred revenue: If your subscription is long-term, you can automatically generate deferred revenue and spread your earnings over multiple years.

Analytical accounting

Analytical account: You can create your own specific analytical account to track your profitability and budget along your own analysis axis. 

Budget management: You can set budgets for expenses and sales, tracking them day by day to manage your company's finances effectively.

Asset management

Asset management: You can track your assets and set up depreciation, with depreciation entries generated automatically. Your bank statements are directly imported into Odoo Accounting for easy reconciliation.

Inventory valuation

If you use the inventory module in Odoo, you can enable automatic inventory valuation. With this option, the valuation of your inventory is automatically updated from your inventory records.

 Implementation of the Odoo accounting software

Configuring accounting settings

To configure Odoo accounting, you need to correctly set up all of the following parameters:

  • Import a chart of accounts: Odoo comes with a predefined chart of accounts, but you need to match it with your existing chart of accounts.
  • Fiscal year: If your fiscal year does not align with the calendar year, you can specify your year-end date.
  • Product categories: In product categories, you can configure default revenue and expense accounts for all products within that category. You can also set up information regarding automatic inventory valuation.
  • Payment processors: You can configure how you will be paid. Several payment processors, such as PayPal and Stripe, are already installed. 
  • Journals: You must set up all the journals you have.
  • Taxes: When you install your tax localization, Odoo will install all default taxes for your location. However, you should verify that they are correct.
  • Tax positions: If you sell in multiple states, you need to configure tax positions to impact the correct revenue account and apply the appropriate taxes.
  • Invoice payment terms: You can define your customers' payment terms. If you sell in multiple states, you need to configure tax positions to impact the correct revenue account and apply the appropriate taxes. 
  • Supplier invoice payment terms: You can establish default payment terms for your suppliers.
  • Tracking: You can configure the default tracking process, customizing the emails and letters that will be sent to your late customers. ​
  • Bank account synchronization: You can set up bank synchronization to automatically sync all your bank statements with Odoo daily.
  • Currencies: Activate the currencies you need and set up automatic rate updates.
  • Asset models: Define the default depreciation model and accounts.
  • Default terms and conditions: Set up default terms and conditions that are automatically added to your purchase orders and invoices.
  • Online payments: You can enable your customers to pay online directly using your payment processors.
  • Batch payment: Enable or disable batch payment, which allows you to group your payments by lot. 
  • SEPA: Configure your SEPA information to generate your SEPA transfer directly from Odoo. 
  • Invoice template: Customize your PDF invoice according to your needs. 
  • OCR for supplier invoices: This accounting software can automatically read your supplier invoice and pre-fill the header and line items of the supplier invoice. 
  • Checks: Set up the check format you want to print directly from Odoo for paying your suppliers. 
  • Analytical account and budget: Create the analytical account you want to manage your business and define a budget to control your expenses.

Data import

Once everything is configured, you need to import the following data for the go-live:

  • Assets: Import all your assets and set the residual value to be amortized along with the number of remaining amortizations.
  • Deferred revenues: Import your deferred revenues.
  • Accrued expenses: Import your accrued expenses. 
  • Journal entries: Import the balance journal entry or all journal entries. 

Odoo accounting training

It is important, in terms of project management, to also train your team members. We recommend the following training sessions:

Training recommended for invoicing and accounts receivable

Demonstrate how the customer account functions in Odoo, then ask users to perform exercises in a training branch. 

Ask them to:
- Create an invoice for €1,000 directly from accounting and record a payment.

- Create a customer order for €500, confirm the customer order, deliver the product, and create the invoice from the customer order. Record a payment on this invoice.

- Create a customer order for €1,500, confirm the customer order, and create a 50% deposit on the amount. Deliver the product and create the final invoice from the purchase order. Check the partner register and find the €1,500.

- On the accounting side, manually create a statement with four lines of €1,000, €500, and two lines of €750. Confirm the statement and open the bank reconciliation screen. Reconcile all lines with the payments or invoices.

Training for accounts payable

Show how the vendor account functions in Odoo, then ask users to perform exercises in a training branch.

Ask them to: 

- Create a vendor invoice for €250 and record a payment. 

- Create a vendor invoice for €100, but do not create a payment. 

- Create a purchase order for €200, receive the products, and create the vendor invoice from the purchase order. Confirm the vendor invoice. 

- Create a purchase order for €300, receive the product. Go to accounting, create a vendor invoice, and look up the purchase order to link the vendor invoice to the purchase order. 

- In the accounting module, manually create a bank statement with four lines: €250, €100, €200, and €300. Confirm the statement and launch the bank reconciliation screen. Reconcile all lines with vendor payments or vendor invoices.

Training on assets and depreciation

Demonstrate how asset depreciation and automatic depreciation work, then ask users to perform exercises in a training branch.

Ask them to: 

-Create a vendor invoice for a computer for €2,000, ensuring that the account is a current asset type.

- Create an asset and link it to this vendor invoice. Set the depreciation account and the depreciation expense account. Confirm the asset and review the draft journal entries generated. 

Training on financial reporting

Demonstrate how the profit and loss statement and balance sheet work, then ask users to perform exercises in a staging branch.

Ask them to: 

- Run the profit and loss statement for this month and compare it to the previous month.

- Run the balance sheet at the end of the previous month.

Training on budget position

Demonstrate how the budget position works, then ask users to perform exercises in a training branch. I recommend customizing it with the tax situation they have.

Ask them to: 

- Create a new income account specifically for a new tax position. If they already have an income account called "ABC," ask them to create a new income account called "Tax Position ABC B."

- Create a new tax specifically for a new tax position named TAX 1% and apply a 1% tax.

- Create a new tax position with:

A rule to replace the income account ABC with the tax position ABC B.

A rule to replace the tax with TAX 1%.

Why choose Odoo for your accounting?

Odoo stands out as a complete and efficient accounting solution, tailored to the varied needs of modern businesses. Here are the main reasons why Odoo is the preferred choice for accounting management:

  • Intuitive interface : Odoo offers a user-friendly interface that simplifies usage and reduces the time needed to train users. 
  • Automation : Automating accounting processes saves time and avoids manual errors. 
  • Financial reporting: Odoo generates detailed financial reports for better analysis and decision-making. 
  • Payment processing: The platform facilitates payment processing, simplifying transaction management. 
  • Bank synchronization: Odoo automatically reconciles bank transactions, ensuring smooth and accurate financial management. 
  • Customization: The solution is flexible and can be tailored to the specific needs of each business. 
  • Multi-currency and multi-company: Odoo efficiently manages multiple currencies and entities, making it ideal for international businesses. 
  • Invoice management: Invoice management is streamlined, allowing for more effective tracking of receivables and payments. 
  • Compliance: Odoo adheres to local tax regulations, ensuring ongoing compliance. 
  • Cost-effective: By offering a flexible and affordable solution, Odoo allows for cost control while providing a comprehensive solution. 
  • Accounting process vs. accounting production: Odoo optimizes the accounting process while ensuring accurate and reliable accounting production.

FAQ : The Odoo accounting software

Odoo is a comprehensive ERP software that covers many areas of business, including sales, accounting, inventory, HR, CRM, and more.

It includes management of accounts receivable and payable, automatic completion of vendor invoices, bank synchronization, multi-currency support, legal reporting, asset management, and stock valuation.

The setup involves establishing the chart of accounts, fiscal year, product categories, payment terms, journals, taxes, tax positions, bank account synchronization, and more.

Training covers invoicing and accounts receivable, accounts payable, asset and depreciation management, financial reporting, and tax position management.

We Doo Accounting offers expertise in both accounting and Odoo. They provide accounting services directly within Odoo and help optimize its usage.

Yes, Odoo supports multi-currency operations with automatic exchange rate updates and allows for managing multiple companies within a single database, with consolidated reporting.

Yes, Odoo offers a complete accounting solution that complies with current standards. The Odoo accounting module manages all accounting operations, from manual entries to tax reporting, including invoice and payment management. With its advanced features, Odoo is a powerful tool that adapts to the needs of businesses, whether for general accounting, analytical accounting, or asset management.

Yes, the FEC file (Fichier des Écritures Comptables) generated by Odoo accounting is valid and complies with French legal requirements. This file is required by the tax administration in case of an audit and must meet strict format and content criteria. Odoo enables the generation of this file while adhering to these standards, ensuring that businesses remain compliant with French legislation.

Odoo offers great flexibility, but it is far from being too permissive. In terms of accounting, it provides strict controls to ensure data validity and compliance with accounting standards. For example, the Odoo accounting module allows locking accounting periods once entries are validated, preventing any unauthorized modifications. Additionally, users can be subject to specific access rights.

Yes, invoicing in Odoo accounting is fully integrated and compliant with the legal obligations of each country. Odoo offers a tax package by country, encompassing local legal requirements, enabling automatic invoice generation, quote management, and tracking of payments and reminders. Each invoice is tracked precisely, ensuring up-to-date accounting. Furthermore, the system supports electronic invoicing and compliance with current tax regulations.

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Transform your financial management with Odoo Accounting. To learn more about how Odoo Accounting can streamline your business’s financial management or to schedule a personalized consultation, contact us today.

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