Asset and Liability Management

Start by creating a well-organised Excel sheet. Include the following columns for both assets and liabilities:

• Account title
• Date
• Description
• Opening balance
• Additions
• Expenses/ Prepayments
• Balance

To extract data from the Odoo database:

Access your Odoo account with your credentials.

Go to the module where your financial data is stored.

Use the export functionality to download the necessary data. Ensure you select the correct fields (e.g., transaction dates, descriptions, amounts) for both assets and liabilities.

Open your Excel sheet and import the data. Make sure the data aligns with your predefined columns.

Prepaid expenses should be expensed out monthly. To do this:

Filter the prepaid expenses from your data.

Divide the total prepaid amount by the number of months it covers.

Book adjusting entries in the Odoo database to keep the record updated.

Each month, subtract the monthly expense from the prepaid amount and record it in your expenses column.

Update the prepaid balance accordingly.

To ensure advances to employees are correctly reflected in the payroll:

Maintain a separate sheet or column for advances given to employees.

At the end of each month, reconcile the advances with the payroll. Ensure any deductions are correctly applied and recorded.

Adjust the advance balances and payroll records accordingly.

Accurate provisions for liabilities help in anticipating future expenses:

List all known liabilities, such as loans, outstanding invoices, and other payables.

Based on past data and forecasts, create provisions for these liabilities.

Each month, update the provisions based on actual expenses incurred.

When a provisioned liability is expensed, update the records to reflect the actual booking of the expense.

To ensure accuracy and completeness:

At the end of each month, review all entries for both assets and liabilities.

Cross-check the entries with the Odoo database to ensure no discrepancies.

Make any necessary adjustments to correct errors or omissions.

Create a summary of the month’s activities, showing the beginning balances, additions, deductions, and ending balances for both assets and liabilities.

Use Excel’s reporting features to generate clear and concise reports for clients and management.

Save your updated Excel sheet and ensure it is backed up securely.

By following these steps, you can maintain a comprehensive and accurate record of your current assets and liabilities, ensuring your financial data is always up-to-date and ready for analysis.