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 organizations still use Excel to manage their finances despite how tedious it can be, or how it can increase the risk of data entry errors, duplication, or data loss.
Traditional methods of financial management can quickly find their limits within a growing company. Software solutions, such as the Odoo ERP, can help you to manage your margins more efficiently and improve the profitability of your organization.
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 dispersed into several different tools within the organization. In some cases, salespeople forego digital data entry or CRM tools altogether and instead jot down important numbers on a piece of paper or software outside of their company's sanction. This can lead to unintentionally withholding information that could be crucial for the rest of the organization.
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 key data, these KPI's turn out to be useless for managing a 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 centralize, qualify and manage data
For easier and more reliable financial management, the Odoo ERP proves itself very useful. This centralized management software allows you to automate certain actions, thus reducing human intervention without negatively impacting the daily life of your teams. Odoo automatically synchronizes quotes with project management and project follow-ups with billing. Moreover, its simple and intuitive interface makes it easy to grasp and does not require any extensive employee training.
Odoo also offers a catalog of ready-to-use KPIs that businesses can use based on their objectives and needs. Some include the number of quotes and their amount, invoices, deals, margin rates and more. Odoo’s ready-to-use KPIs can simplify and enrich the value and quality of business analysis. In Odoo it is also possible to create graphs, specific views and cross tables for in-depth analysis and more realistic forecasts.
Odoo clearly highlights defined objectives, sends reminders when an action or activity has reached or is approaching its deadline. It pushes key information to users so they can adjust their tasks and actions accordingly. By precisely reviewing expenses and revenues Odoo truly refines profit control, even with limited data, to provide realistic and accurate reports.
And because KPIs are updated automatically according to the data entered in the ERP, Odoo gives every team member access to important information, without the need to search through multiple tools or consult with colleagues.
Realistic and up-to-date forecasts with Odoo
With Odoo it is possible to make financial forecasts, review different sets of information and adjust objectives and margin calculations for services in nearly real time.
Odoo also has various graphical displays that are easy to export and accessible to all, including employees who do not use the ERP. Odoo ERP makes it possible to access in-depth analysis for any part of your organization. Without hassle, Odoo simplifies and enriches profit management through properly established key performance indicators.
Contacting an integrator can help define the KPIs that best fit the activity of a company. Here are some useful KPIs for business management:
Sales margin: sales excluding VAT - operating and purchasing costs
Turnover
Invoiced hours
Hourly rate: at which any rate below the threshold will not be invoiced
Forecasted result
Captivea has been integrating Odoo for several years and has a solid knowledge of the software making us a perfect choice to accompany your Odoo integration. Did we mention we are an Odoo Gold partner?