Accounting is the aspect of every business which plays a crucial role in the operation of the company. It's also a part that should be effectively managed and monitored for the successful generation of profits. Whether the operations work on the basis of fiscal years and the duration along with the chart of accounts such as payable and receivable should be managed effectively to determine the status of the company. Furthermore, the computation terminologies should also be established which would determine the calculation methodologies. Additionally, the taxation factor should be configured based on the company in which the company is operating and additional taxes by the governing bodies should also be standardized if needed.
Management of all accounting functions can be hectic for the company and its employees. They should hire more employees to distribute the workload which will lead to a reduction in profits. Automating the accounting functionality of a company is effective to tackle this issue. With the development of communication technology and electronics, there is various automation functioning software that will allow the customers to reduce the stress on employees and human resource hiring.
What is an ERPs?
Enterprise and resource planning software(ERPs) is an apt solution to manage your company accounts. The ERPs can be configured for managing the operation of only one aspect of the business or can be executed to run the entire company. Basically the ERPs are classified into two based on their operating terminology Open-source ERPs and non-open- source ERPs. Among which open source ERPs are usually seen to outweigh the other in various aspects such as functionality, reliability, and advancements. Since the Open -source ERPs operate in a platform where information sharing is the key aspect the various updates and advancements of the software are of instant reach to the users there will be helpful in improving business operations.
Odoo ERP software
Odoo being one the best ERPs available in the market can help you to manage the operations of the accounting department of the company. Odoo is often called as the one-stop solution to manage the business needs of the company since the Odoo platform can help the user to manage the whole business using various application modules available in the system. The customizability and integration ability of the Odoo platform makes it apt for any business and overpowers other ERPs available. Get Odoo ERP accounting software kit.
Benefits of using Odoo Accounting:
The reconciliation feature of the Odoo platform allows the users to reconcile the bank accounts of the company and other reliable platforms in real-time. The accounting module of the Odoo platform can be configured to synchronize the bank statements of the company with the platform in real-time at frequent intervals. This functionality will speed up the information being reconciled making the users updated to the realtime information.
The Odoo platform accounting application allows the users to generate invoices for the sales of products and services at various inspects of operation. The invoicing can be directly functioned from the sales quotation and can be sent out to the customers via Email or handed over by hand. Additionally, the Odoo platform provides the provision for its users or field staff to generate invoices directly from the field for the service timings and the spares being used.
The module constantly monitors the various aspects of business such as profit and loss, sales data, invoice details, etc which will be depicted in the format of reports by the platform. These are analytical data that will provide the users with the operation of the business and additionally allow them to plan accordingly. This realtime data can be sorted out by filtering and grouping by on aspects of various measures. The accounting reports of the business are depicted in charts, graphs, and tables which can be viewed in various default formats available in the platform.
Ledger and chart of accounts
The module offers the user to create ledgers and maintain them accordingly to the standards. These can be of the same which were maintained as in the initial days in physical form. The ledger reports are classified and described as per the needs of the user. In addition, the platform allows its users to create and maintain charts of accounts such as, payable, and receivable accounts which can be configured for the various aspects of credits and debit operations of the company.
Payment follow up
The accounting module of the Odoo platform provides provision for the users to follow up on the payments which are not being made by the customers. This option allows the users to send out warning messages and will depict the amount due to the customers toward the companies.
Fiscal year settings
The fiscal years define the operation status of the company at the end of the term. The accounting module of the Odoo platform provides the users with provision to create fiscal years based on days and months as per the aspects of the standardization. The fiscal year settings of accompaniment also depend on the financial year description provided by the authorities. On closing the fiscal years the users are alerted by the Odoo platform totally out of the payable and receivable accounts and additionally if any payment is not allocated to a chart of account an additional miscellaneous account will be created.
Payment terminologies and Multiple currencies
The accounting functionality of Odoo allows the users to describe various payment options such as direct payment and down payment which can be done based on a fixed amount or on a fixed percentage. The down payment functionality of Odoo is a handy tool for the customers and will invite large business opportunities to the company.
If the organization operates in multiple countries the Odoo platform has the provision to set up multiple currencies to operate on. This tool will be much helpful in the transactions and will embark on bringing the largest business to the company.
In conclusion considering the above-mentioned points the managing accounting operations of your company in Odoo will be beneficial for the growth and will generate larger revenue.