In today's fast-paced business environment, SMEs and Startups need an efficient accounting solution early on to be able to have a controlled and profitable growth.
This accounting solution needs to be affordable and flexible.
One system that has gained popularity in recent years is Odoo which has more than 5 million users across the globe.
Designed to simplify and automate financial management tasks, while being integrated with other modules/processes like Sales, Inventory, Projects, Purchases, etc. Odoo Accounting provides a solution that can streamline your company's accounting processes.
In this article, we will guide you through the steps to set up and utilize Odoo Accounting for your Philippine-based company.
The Main Features of Odoo Accounting
Odoo Accounting offers a comprehensive range of features to streamline financial management for businesses. Some of the main features of Odoo Accounting include:
1. Invoicing: Odoo allows you to create and send professional invoices to customers. You can generate invoices directly from sales orders or create them manually.
2. Bank Reconciliation: Odoo provides a user-friendly interface to reconcile your bank statements with your accounting records with powerful features to match transactions and detect/record discrepancies.
3. Chart of Accounts: Odoo allows you to set up and customize your chart of accounts to categorize your financial transactions accurately. We’ll give you more information on how to properly set up your chart of accounts with Odoo Accounting in the Philippines in the section below.
4. Reporting and Analysis: Odoo provides various reporting tools to analyze your financial data. You can generate standard financial reports such as balance sheets, income statements, and cash flow statements. Additionally, you can create custom reports and utilize advanced analytics features for deeper insights.
5. Tax Management: Odoo Accounting supports tax configuration for different jurisdictions. You can define tax rules, tax rates, and set up tax mappings to ensure accurate tax calculations on your invoices and bills. We’ll give you more information on how to properly set up your tax configurations with Odoo Accounting in the Philippines in the section below.
6. Multi-currency and Multi-company: If your business deals with multiple currencies or has multiple sister companies, Odoo Accounting allows you to manage transactions in different currencies and consolidate financial information across multiple companies.
7. Expense Management: You can track and manage expenses within Odoo Accounting. This feature enables you to record and categorize expenses, track employee reimbursements, and generate expense reports.
8. Integration with Other Modules: Odoo Accounting seamlessly integrates with other Odoo modules, such as sales, payroll, inventory, purchase, and project management. This integration allows for streamlined data flow across different departments of your organization.
9. Automation and Workflow: Odoo Accounting automates repetitive tasks, such as recurring invoices, payment reminders, and bank statement imports. You can define workflows and set up automatic actions based on predefined conditions.
10. Audit Trail: Odoo maintains an audit trail, which tracks all financial transactions, changes, and user actions. This feature ensures accountability and helps in maintaining data integrity.
For more details you can check out the Odoo website page dedicated to Odoo Accounting here.
Setting up Odoo Accounting Philippines
To get started with Odoo Accounting, follow these steps:
1. Work with experts
Partner with an accounting firm experienced in implementing Odoo Accounting solutions. They can guide you through the setup process, ensuring a seamless transition.
To found out the Odoo Accounting experts in the Philippines, including our firm Proseso Consulting, you can check this page.
As you may also need customized features - on Odoo accounting or other modules - ask the accounting firm if they are used to working with Odoo developers / partners.
2. Start with core features
When implementing Odoo Accounting, it is highly recommended to begin with the basic or out-of-the-box features of Odoo along with a few essential modules before delving into complex customizations and incorporating multiple modules.
Starting with the fundamental functionalities and gradually expanding the system's capabilities allows for a smoother and more efficient transition.
By initially focusing on the core features provided by Odoo, businesses can familiarize themselves with the platform, establish a solid foundation for their accounting processes, and gain a better understanding of their specific requirements. This approach helps minimize complexities and potential complications that can arise from prematurely customizing the system or incorporating unnecessary modules.
3. Main specific configurations for Odoo Accounting in the Philippines
Philippine Chart of Account: make sure to set up a Chart of Account that is compliant with the accounting standards in the Philippines and its related specificities for taxes (see below), payroll (see below), etc.
Philippine Bank setup: to streamline the upload of your bank statements, and the reconciliation process, link your Philippine-based banks in Odoo Accounting (not compatible with all banks):
Philippine Currency and Foreign Exchange Gain/Loss settings: select PHP as your main currency and validate/setup the multi-currency feature to automatically account for foreign exchange gain or loss:
Philippine Payroll module: if you are interested to streamline your payroll management and computation in Odoo, we can help you implement a customized module that is fully compliant with the payroll requirements in the Philippines:
3. Data migration
If you're transitioning from an existing accounting system, the accounting firm will assist you in setting-up beginning balances and migrating your data to Odoo Accounting. This ensures a smooth transfer of financial information without any loss or discrepancies.
4. Integration with other modules:
Odoo offers a suite of integrated business applications. Consider integrating Odoo Accounting with other core modules like inventory management, sales, and human resources to create a unified system for your company's operations.
Proseso Consulting - The Finance expert for growing and international businesses
Proseso Consulting provides business advisory and finances managed services (bookkeeping and accounting, outsourced and automated payroll, tax compliance, financial reporting, etc.). We are here to help you achieve your long-term business goals!
Ninoy Salmon is a seasoned business and finance professional with extensive experience working with both fast-growing startups and companies in the Philippines and around the world.
This blog article does not constitute professional or legal advice. It is only intended to provide general information on a subject.