Start And Grow Your Own ‎Consulting Business From Zero: ‎Artificial Intelligence in ‎Accounting Practical ‎Applications Odoo 17‎: odoo consultations, #1.1

By DR.Abdelghany.fouad

How Bookkeeping And Accounting Can Leverage AI

ODOO : A Modern Finance Solution Powered By AI And ML 

While the largest finance firms and accounting industry leaders are starting to embrace and implement automation, ODOO accounting procedures and platform have been built on AI and ML automations from day one.

 

ODOO is a modern finance firm that uses a combination of high-tech solutions and seasoned finance experts to handle all your business's bookkeeping, accounting, and CFO needs. 

Many finance platforms try to bolt artificial intelligence onto their existing services, but ODOO offers more comprehensive automation and a smoother user experience by baking AI into the core of our business model.

 

ODOO finance dashboard is unique in the market: It presents customers with real-time insights using AI- and ML-powered automation. 

 

The ODOO Dashboard provides 24/7 access to vital metrics, including your startup's net burn, cash on hand, operating expenses, and cash zero date, plus other financial data and trends. With most bookkeeping services, you have to specifically request this data and pay for the time it takes to answer your query. 

 

With ODOO , you can go directly to your dashboard and immediately access the metrics you need at no extra charge.workflows including:

 

Accounting

1. Customer Invoice Management in Odoo Accounting
2. Credit note management with Odoo Accounting
3. Payment Management in Odoo Accounting
4. Receipts in Odoo Accounting
5. Batch payment management in Odoo Accounting
6. Customer Follow-Up Reports in Odoo Accounting Inventory
7. Customer creation in Odoo Accounting
8. Vendor Bill Management in Odoo Accounting
9. Refund feature in Odoo Accounting
10. Employee Expense management with Odoo Accounting
11. Payment terms in Odoo Accounting
12. Asset Management & Reports in Odoo Accounting
13. Cash Rounding in Odoo Accounting
14. Multi-Currencies in Odoo Accounting
15. Invoice Online Payment with Odoo Accounting
16. Analytic Accounting Management in Odoo Accounting
17. Budget Management in Odoo Accounting
18. Bank Reconciliation in Odoo Accounting
19. Automatic transfer with Odoo Accounting ... and more

Inventory 

1. Inventory Overview
2. Generating Batch transfer and transfers in Odoo Inventory
3. Inventory Adjustment in Odoo Inventory
4. Product and Product Variants management in Odoo Inventory
5. Replenishment in Odoo Inventory
6. Setting up Warning messages with Odoo Inventory
7. Landed cost in Odoo Inventory...and more

Sales  

1. Creating Customers in Odoo Sales
2. Setting different Address types for customers in Odoo Sales
3. Setting Fiscal position for customers in Odoo Sales
4. Assigning Payment terms to customers in Odoo Sales
5. Setting Pricelist for Customers in Odoo Sales
6. Creating Sale Order in Odoo sales
7. Quotation Template in Odoo Sales
8. Product and Attributes in Odoo Sales...and more

Purchase

1. Creating Vendors in Odoo Purchase
2. Setting different Address types for Vendors in Odoo Purchase
3. Setting Fiscal position for Vendors in Odoo Purchase
4. Setting Pricelist for Vendors in Odoo Purchase
5. Creating Purchase orders and Bills in Odoo Purchase
6. Billing policies in Odoo Purchase
7. Purchase Agreements Types in Odoo Purchase...and more

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• Language: English
• Publisher: DR.Abdelghany.fouad
• Release date: Apr 27, 2024
• ISBN: 9798224058433

DR.Abdelghany.fouad

مجالات التخصص التسويقي نقدم برامج تدريبية قابلة للتنفيذ تركز على تحسين الوعي والعملاء المحتملين والمبيعات تشمل ورش العمل التدريبية الأكثر شعبية لدينا دروس متقدمة في استراتيجية التسويق الرقمي اكتساب العملاء عبر الإنترنت وسائل التواصل الاجتماعي وتسويق المحتوى ميكنه التسويق عبر البريد الإلكتروني

Book preview

Chapter one

Types Of Accounting : Introduction To Odoo Accounting | Odoo 17 Accounting

Accounting can be defined as a procedure of reporting, documenting, illustrating, and summarizing financial data. Accounting is a crucial part of an organization or company. It is the central focus unit for handling all areas of business transactions. Throughout the centuries, accounting has been revived as an enclosed structure for keeping financial records and assisting an accountant's duties. However, in the current scenario, the constantly developing business environment demands that business entrepreneurs and accountants reconsider their functions and responsibilities. Accounting has to do more than mere bookkeeping and generating financial reports.

hello dear the words and welcome to our brand new accounting smart class my name is Dr. Abdel Ghany Fouad i am a functional consultant and expert in accounting in odoo if you want to know more about accounting in general if you want to be able to understand accounting requirements and translate those into a duel basically

if you want to handle your accounting implementation from a to z then you've come to the right place this course is made for you the smart class is structured as follows first we'll see together the accounting 107 which is basically the business knowledge of accounting so we'll set together

the different roles revolving around around the accounting department the different accounting concepts in order to understand your clients requirements and translate those in odoo

and then we'll jump in and do directly and see together the basic features that need to be set up in order to be live in your accounting application and lastly we'll see together the advanced features of accounting in this smart class

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we'll try to focus on three different topics the first being the best practice we want to bring our experience as other accounting specialists in this smart class next the do's and don'ts so what you need to pay attention to when you implement the accounting application and lastly our clients most frequently asked questions

in order to get you real-life use cases and be able to relate to them at the end of the smart class you'll be able to understand the basic principle of the accounting business knowledge

understand the different jobs involved around accounting

manage a basic accounting implementation from a to z

manage the the base master basic features of the accounting application manage incoming and outgoing documents related to accounting

master the advanced features of the accounting application

and lastly manage complex requirements for reporting purposes at some point

significance of Accounting

The systematic and comprehensive enrolment of financial transactions of a business - Accounting - plays a vital role in performing a business, including income-expenditure tracking and statutory compliance management. Also, it helps to collect quantitative financial information. The Accounting system will benefit the owners, management, investors, and even the governments. A strong and deep-rooted accounting and bookkeeping system are essential for a smooth business.

In this process of keeping track of a business’s financial status, the accounting system initiates with the practice of bookkeeping. It then concludes with reporting data and information as a financial statement at the end of every financial year. Accounting has a pivotal role in successfully evaluating business performance. You can easily compare accounts with previous years. The accounting system also lets you keep a close look at the cash flow by having a robust book of accounts. In addition, the account-keeping system offers you effortless filing and always allows you to stay compliant. Apart from all these benefits, the Accounting data makes it easy to formulate the budget to fulfill a consigned business strategy. So you can efficiently and effectively budget for your future plans. Proper accounting supports the organization by offering it with various financial reports required for handling day-to-day business operations.

One of the most important aspects of an organization, the Budget management tasks will become very simple if the accounting system is robust. The accurate records gained from the financial accounts will help you make the right decision for the business, resulting in effective management and higher profitability.

Double Entry Bookkeeping System

Double-entry bookkeeping in accounting is a system of recording transactions. In this system, the entry is recorded as at least two accounts: debit and credit. In this system, the debit and credit amounts recorded must be balanced. This means the amount of the recorded debits must equal the amount recorded as credits. So the system will help you to record the transaction on two sides.

In this system, when a transaction occurs and gets impacted in an account, a matched impact will occur in the other account. The corresponding debit value will be recorded for the credit value. In addition, the credited and debited accounts will be listed in the company chart of accounts.

When considering an example, suppose a sale is confirmed for $ 200. There will be an impact on both the Income Account and the Receivable Account. Since it is a sale for the organization, the income increases. So the income increases and the income account credits $200. As Assets increase and as result, the receivable account debits $200. The nature of the account will decide whether an account should be credited or debited.

The hierarchy of Accounting

Finance is the fundamental element for future success. So as a business leader, you must be bothered about the accounting hierarchy of your business or organization. The accounting hierarchy is very important without considering the size and type of business. In the general accounting system, all of the transaction details are properly entered into the equivalent ledgers. The way transaction details are registered on both sides ( the credit and debit side of accounts) is decided by its nature. For general accounting, there follows a hierarchy.

The different accounting jobs and their roles within a company

The accounting and finance industry is a diverse field with a wide range of positions. Due to this variety, there are many different job titles to consider if you are interested in a career in this industry. Before starting a job search, it is important to understand job titles so you can choose the best career path for you.

welcome to the first part of the accounting smart class  the accounting 107 in This part we're going to talk about the different accounting jobs and their role within a company

in accounting you may have different stakeholders involved in it on one hand you're going to have an internal team the first person you're going to need in the implementation is the senior accountant they are responsible for configuring the accounting application with the basic set up like the chart of accounts the journals the taxes etc

once this is done and the accounting is live we'll check with the accounting assistant who is responsible for including the bills the invoices the bank statements the day-to-day activities basically the operational side of the accounting

department once this is done the senior accounting responsibility is to validate review those encodings and validating those the the goal of the the validation is to be able to extract to generate the legal reports like the balance sheet the tax report the

l and so on in on another level the chief financial officers or the cfo needs reporting extracted from the accounting in order to be able to monitor

the financial health of a company and be able to take rational  decisions for investments and this kind of  topics on the other hand you're going to have an external team other stakeholders like the chartered accountant who is the person responsible to close the fiscal year so validate all the journal entries that has been generated that have been generated through the year and closed the fiscal year

in bigger companies you may have also an auditor who is there to  verify check the accounting and make sure that it's compliant to the the accounting principle basic principles basically and lastly you may also encounter the authorities that are there to make a check of the company and make sure that and they're not in a fraud situation just so you know this is just a generic  organization set up of the stakeholders around accounting but of course based on the company's  style sector

or in a way of  working some people my for example the eternal team might be only one person so it depends on the size depends of  the culture don't take this as  one example for every company style let's see together the different rules more precisely

so as i said the senior accountant is responsible for the configuration of the accounting like the chart of accounts the journals the taxes when the accounting is live they take part of through the process by validating the invoices and the bills making the payments generating the legal reports such such as the tax report

second the accounting assistant so once the accounting is live it's their responsibility to encode the vendor bills the customer invoices the bank statements and also to do payment follow-ups and those in those actions needs to be done fast and that's a key to it and that's also something that you can  you need to focus when you're trying to understand their requirements and their needs in the accounting applications is that they need to spare some time they need to be as fast as possible

and that's why we're trying to do when we implement the accounting implemented in application sorry and be able to satisfy their daily activities needs

next the chief financial officer so they aim to monitor the financial health of a company and the focus on the reporting is about the balance sheet the profit and loss but it can also be the analytic accounting the budget and the difference between those is that balance sheet and piano  concern the legal reporting rather

than the analytic accounting and budget and more management reporting which  well their their goal is completely different and these information are important because they should be able to quickly

and easily extract the data to build some specific indicators and reports so they need information quickly in order to take the in to take good decisions rational decisions based on the their own the company's financial health

next in the external team we go to the chartered accountant so it's  they're all mandatory so it's really important to close the tax period and the fiscal year by reviewing the balance sheet and the profit and loss making some adjustments if needed and booking the closing journal entries they are also able to provide valuable advice throughout the year to the company when needed

the auditor ensures that the financial statements are truthful and fair so it needs to reflect the real picture of the company and based on those statements an external stakeholder could take a decision which is rational relevant and result reasonable so for example for credit for investment acquisition etc

lastly the authority when the authority has some relevant doubts on the compliance the authority could perform a deep controlling of the accounting for example if the company didn't report revenue or tax reporting inconsistency and pay taxes and contributions etc so this is the case where the company is in a frauds situation

the accounting process  involves a lot of people as we said and we go through different steps which that need different  well they have different requirements basically

so the operational then the validation the reporting the closing checking and lasting the control and all this our goal is to ease this process with a do with the accounting application and we see that together 

Chart of Accounts & Account Types

Effective accounting practices demand a litany of skills and knowledge, and fiscal acuity is especially critical for time and resource-challenged small- to medium-sized organizations. Every buck counts and organizing and reporting on them within a cogent General Ledger not only provides insight and discipline but results in improved processes that impact practical outcomes such as regulatory compliance. Enter the Chart of Accounts, aka COA, for our current consideration, as a key metric of financial health.

the chart of accounts and the account types the chart of accounts is basically the dna of the company so this is how we structure all the value that needs to be represented in the accounting every item in the company is related to an account without this it doesn't exist in the accounting let's take some examples in the belgian gap

so gaap means generally accepted accounting principles so these are the accounting rules that apply in belgium so every time you see gap and a country before it it means that those are the accounting it's based on the accounting rules of this country for example let's take coffee so you buy coffee for your employees uh it's the costs for you it's an expense for the company uh so it's the account 61.

the debt to the caterer for the office party so it's a vendor debt it's a payable account so it's account 44. uh the new car that you need to buy is an investment so uh it goes in the account 24. the sales of goods is an income a revenue so it will go in the account 70.

in a journal entry so in any journal entry that we will encode in the system we will use the accounts to create the value in the company's accounting without those the accounting doesn't exist in belgium

this the accounts are divided into classes each country has their own but in continental accounting they are more or less the same rather uh then for example in uh anglo-saxon accounting the labels are more important than the codes so the number of the account so class number one

so all the accounts that start by one are the accounts are related to the class equity and subordinated debts two for fixed assets three for inventory four for current assets and liabilities so receivable and payable five for banking cash accounts and expenses and income for the accounts six and seven so this is not something that you should remember and learn by heart it's just to help you out when you talk to your client um to be able to interact with their accounting needs

when they're explaining something the fact that you know which type of account is related in their is is present in their charter account will help you give better advice regarding their accounting requirement so just keep that in mind and you know it might help you out when you're in a real life situation now

let's check out the account types uh this is quite um ozo specific so we have different types that uh for which we split all the accounts in every account needs a type of account and the type is chosen uh based on the nature of the account and these these accounts these types sorry bring structure to the to the chart of accounts and to um well the entries themselves also we can also use that it impacts the reports

so in odu the generic reports for example are built based on the type of account we'll see that uh in the future Part and future topics that based on uh the country well accounting principles the financial reports may be split based on the type of account based on the code of the account

or based on uh the tags that may be undercut we'll start to see that together but keep in mind that the account times are really important for generic financial statements uh in order to have the splits between the types of accounts that's all for me in this Part thank you for watching and see you in the next topic

Summary

Basic Chart of Account Categories

While every COA will differ, there are some basic categories that most organizations will want to include, or at least consider, tailored to the specific nature of your business.

Assets are comprised of a list of different components showing the value of monies on hand and owed to you, as well as property owned

Bank accounts, typically checking and savings accounts.

Accounts receivable are the amounts owed to you for products provided or services performed.

Retention receivables are the amounts customers are holding until work is completed.

Assets your organization owns (usually physical, but not always- think patents, trademarks, and software) such as equipment and real estate that assist in creating your product or service.

Underbillings are entries made when you have billed for less than you have completed (otherwise referred to as percent complete income recognition)

Inventory such as pre-paid materials, supplies, and parts kept on hand.

Liabilities are just that, monies owed or due for payment by your organization

Customer deposits and down payments including any interim payments (such as using a payment on completion of agreement method).

Accounts payable are the typical amounts you owe to vendors for raw materials or parts, needed equipment, and any subcontractor-related services.

Retention payables are the amounts you owe to vendors held until work is completed.

Assets your organization owns (usually physical, but not always- think patents, trademarks, and software) such as equipment and real estate that assist in creating your product or service.

Loans, including any company or project notes that are outstanding current liabilities.

Shareholders’ equity (this may be negative or positive).

Overbillings are amounts owed when you have billed for more product/service than you have completed (aka percent complete income recognition).

Retained earnings are company profits or losses from the previous fiscal year.

Amounts owed via employee expense accounts.

Income or Revenue represents the gains amassed from multiples sources

Sales, including income derived from the delivery of a product or service.

Interest income such as earned interest on bank accounts or other investments.

Over and under billing adjustments.

Cost of Goods Sold (COGS) is the additional expenses needed to

successfully deliver a product or service

Labor costs may include such items as salaries, employee benefits, and any employerresponsible taxes.

Material costs such as raw materials or parts needed to complete the finished deliverable.

Subcontractor or non-employee expenses required.

Equipment costs covering both rental and/or the operation of owned equipment.

Expenses are divided into two categories, direct and indirect.

Direct expenses can include

Indirect expenses can include

Administrative costs including labor and necessary operational software.

Office expenses that cover building rent, office supplies, and other operational needs.

Taxes, such as business income tax and sales tax.

Insurance of all types such as liability, workers comp, and vehicle.

Vehicle costs including expenses related to maintenance and fuel.

Mobile phones and the cost for both equipment and associated service contracts.

How to Set Up a Chart of Accounts

Sample Chart of Accounts are readily available for upload

from the Internet, or you can establish your own using

standard default numbers and customized sub-designations

for account types.

See the list earlier in this document for the specific macro-designations. That means, in most cases, all your asset accounts will use the number 1, followed by four numbers (1-XXXX), while your liability accounts would start with the number 2 (2-XXXX), and so on through the numeric list. This is a practical structure for businesses that manufacture or sell products and is a good fit for those looking for added specificity in their chart of accounts structure. Again, using the multiple three- or four-digit sub-account designations will provide more in-depth transaction tracking and overall fiscal transparency.

A Chart of Accounts Tailored to Your Needs

While the chart of accounts can be similar across like businesses, every COA should be unique to your business. Questions to ask include:

What do I want to track in my business?

How do I want to organize information to best see my results and refine my strategy?

Odoo Debit: Definition and Relationship to Credit

A debit is an accounting entry that results in either an increase in assets or a decrease in liabilities on a company’s balance sheet. In fundamental accounting, debits are balanced by credits, which operate in the exact opposite direction.

For instance, if a firm takes out a loan to purchase equipment, it would simultaneously debit fixed assets and credit a liabilities account, depending on the nature of the loan. The abbreviation for debit is sometimes dr, which is short for debtor.

debit and credit concept debit and credit is the foundation of what accounting is like as an accountant  the day-to-day activities are double entry bookkeeping

that's the base of everything a journal entry is composed of two parts one side is the debit and one the other side is the credit and the main concept of all accounting is that debit should always equal credit if you don't have that you don't have a right accounting and basically it's not going to be possible to post these entries once you record the journal item you will always find a counterpart and you won't be able to post items

that are not unbalanced so which means if your debit doesn't equal your credit you can't save your journal entry and you're going to be stuck depending on how your account is going to be debited or credited it will have an impact on your reports so let's take a few examples  first we're going to see a salary entry

so a cellular entry is composed again of two parts mainly and we're not going to see this into details on one side you're going to have the employee's costs so what it costs you to accompany and the cost is represented in an expense account regarding the accounts types it's going to help you understand this topic and the cost should be represented on the debit side and the counterpart of this entry is the employee's debt so what you owe to your employee

so their salary basically and debts that you owe to  another par on a third party like a supplier but also your employees should be recorded in a current liability account and as it is a counterpart of a debit should blow in the credit next example  you receive a payment from your customer

so you have an additional value in your bank account so it goes in the bank and cash account and should go on the debit side and the counter part of it is your customers debt that we have settled so the customer debt is represented in a current asset account 

so when we receive the money we want to make sure that this account is settled so there is no more debt in it because we received the money  so this is why it is a counterpart of a customer payment as i said accounts can have different behaviors on the debit and credit side depending on their nature

so  just take a look at this table the first type of account is what we call an active account we're going to see that more in details to see what this is about so active accounts for example a bank account is an active account if you want to increase the value of this account because

in the our last example when we receive the customer payment the value of our bank account increases we want to record this value on the debit side and once for example if we pay a supplier we decrease the value of our bank account so it should be recorded on the credit side passive accounts have the opposite behavior

so  for example a supplier debt so if you owe money to your you have a vendor bill so you have this vendor represented that's that you have towards your supplier when you receive this vendor bill you need to increase the value of debts the amount of debt that you had towards your supplier so in that case if you have an increase in this account you have to credit the value okay so the payable account is a passive account and as such if you increase the payable

because you have a new vendor bear you need to credit the account the expense accounts  if you want in that case so remember the employee's cost in that case it's an