Migration From Local Accounting Software to Odoo Accounting

日期 : Nov 2023 - Dec 2023

<div><p>Noman Ghani was recently approached by an Internet services provider (we'll call them "N xolutionz (pvt) Ltd.") to assist with their bookkeeping strategy. N xolutionz (pvt) Ltd described their current bookkeeping situation as inefficient and confusing. In addition, N xolutionz (pvt) Ltd was concerned that they never really knew how much money they were making. Balanced Books identified their problems and implemented a solution.   Problem 1. N xolutionz (pvt) Ltd was maintaining their bookkeeping in two different accounting systems (Local accounting software and Odoo accounting software). Unfortunately, they had not been adequately set up to work in the same accounting system as their accountant was using, so they were maintaining two different sets of books.   • N xolutionz (pvt) Ltd invoiced customers using Odoo Online because the program is easily accessible and convenient. They could invoice customers as needed to maintain positive cash flow. However, this was not a complete and accurate set of books, so N xolutionz (pvt) Ltd could not see the big picture of their accounting work. In addition, Customer payments were recorded but not "deposited" in Odoo, so there were numerous old transactions just "floating" in the accounting system.   • The accountant for N xolutionz (pvt) Ltd was recording all accounting transactions and reconciling accounts in local accounting software. Deposits to the business checking accounts were coded to "revenue" without corresponding customers or services being identified (N xolutionz (pvt) Ltd had all this detail in Odoo. The accountant was using their local accounting software for bookkeeping to prepare tax returns for N xolutionz (pvt) Ltd each year. The accountant sporadically providing N xolutionz (pvt) Ltd with a financial update, which was helpful; however, it was not frequent enough to assist with day-to-day decision making.   2. Having accounting transactions in two different systems is inefficient because transactions are essentially entered twice. In this case, customer invoices and payments are entered into Odoo, and bank deposits are entered into local accounting software. Both systems show valid transactions, but neither approach is as accurate as if only one method was used. In addition to inefficiency, having two accounting systems is highly confusing. Which system would you trust if neither all the information available had?   Solution 1. The Ng accountants team worked with N xolutionz (pvt) Ltd to obtain access to the Odoo and Local accounting software files and merged them; however, combining two accounting systems isn't as easy as "pushing a button."   • We imported invoices from Local accounting software into Odoo Online for the current year, applied payments, a CORRECTED the deposits made by the accountant to include customer payments, rather than being coded to "revenue." This is an important step. Having deposits coded to revenue and applying for customer payments (but not "depositing" them) creates DOUBLE income.   • Ng accountants started with the Odoo file from the accountant since this file supported the prior year's tax returns.   2. Ng Accountants updates the Odoo file by reconciling the current year and ensuring the accuracy of both the Balance Sheet and the Income Statement.   3. After establishing an accurate set of books, we converted the Odoo file BACK to Local accounting software – essentially overwriting the existing Local accounting softwar file that N xolutionz (pvt) Ltd was using. This will allow N xolutionz (pvt) Ltd AND their accountant (now Balanced Books!) to access the SAME accounting system. If you feel that your accounting system is confusing or inefficient, then it probably is. It never hurts to get a second opinion. Reach out to the Balanced Books team for assistance with implementing accounting improvements. </p></div>