The accurate and reliable management of prices and margins for products and services is essential for the survival of a company. However, it is not always easy to adjust, forecast and monitor this data without the right tools. Many organisations still use Excel to manage their finances even though it is tedious and can increase the risk of data entry errors, duplication or data loss.
Traditional methods of financial management can quickly reach their limits in a growing company. Software solutions such as the Odoo ERP can help you manage your margins more efficiently and improve the profitability of your organisation.
Lack of KPIs, siloed information and other obstacles to calculating profits
There are three trends that hinder a company’s ability to successfully manage its finances. The first is having large amounts of data scattered across several different tools within the organisation. In some cases, salespeople forgo digital data entry or CRM tools altogether and instead jot down important numbers on a piece of paper or in software that has not been approved by the company. This can lead to unintentionally withholding information that could be crucial for the rest of the organisation.
The second trend is the lack of clearly defined key performance indicators. To manage margins and break-even points, it is necessary to define relevant KPIs. Many companies make the mistake of defining too many, or not enough. Because they do not focus on the most important data, these KPIs end up being of little use in managing the company.
Finally, depending on the tool used, the numbers processed may not always be accurate or up to date. In this case, an increase in data quality is necessary for more reliable management.
Use Odoo ERP to centralise, qualify and manage data
For smoother and more reliable financial management, the Odoo ERP is extremely useful. This centralised management software lets you automate certain actions, reducing manual intervention without disrupting your teams’ day-to-day work. Odoo automatically synchronises quotations with project management, and project follow-ups with invoicing. On top of that, its simple and intuitive interface is easy to pick up and does not require extensive staff training.
Odoo also provides a catalogue of ready-to-use KPIs that businesses can tap on based on their objectives and needs. These include the number and value of quotations, invoices, deals, margin rates and more. Odoo’s ready-to-use KPIs help simplify and enhance the value and quality of business analysis. In Odoo, you can also create charts, custom views and pivot tables for in-depth analysis and more realistic forecasting.
Odoo clearly highlights defined objectives and sends reminders when an action or activity has reached or is close to its deadline. It pushes key information to users so they can adjust their tasks and actions accordingly. By closely reviewing expenses and revenue, Odoo significantly improves profit control, even with limited data, to deliver realistic and accurate reports.
And because KPIs are updated automatically based on the data entered in the ERP, Odoo gives every team member access to important information, without having to search through multiple tools or check with colleagues.
Realistic and up-to-date forecasts with Odoo
With Odoo, you can generate financial forecasts, review different sets of information and adjust objectives and margin calculations for services in near real time.
Odoo also offers various graphical dashboards that are easy to export and accessible to everyone, including employees who do not use the ERP. With Odoo ERP, you can carry out in-depth analysis on any part of your organisation. Without added hassle, Odoo simplifies and enhances profit management through clearly defined key performance indicators (KPIs).
Engaging an integrator can help define the KPIs that best match a company’s activities. Here are some useful KPIs for business management:
Sales margin: sales excluding GST – operating and purchasing costs
Turnover
Invoiced hours
Hourly rate: where any rate below the threshold will not be invoiced
Forecasted result
Captivea has been integrating Odoo for several years and has strong expertise in the software, making us an ideal choice to support your Odoo implementation. Did we mention we are an Odoo Gold partner?