L81 Accounting Basic Info

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Vasil Georgiev
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Page no: L82

Step	Title	Usual way of doing	Alternative ways	Software aided
	Account type	Typical Alternatives: Income/Expense accounting (with or without VAT) Double Entry (with or without VAT) Double Entry with foreign currencies (with or without VAT)
	Company Name			Odoo
	Bank Accounts	For each bank account create an accounting account		Odoo Best practices in Youtube Link to Odoo
	FX rates	Double Entry with currencies Obtain Official FX rates from Swiss tax authorities Do FX Rates setup (e.g. in Banana) Choose base currency Must run an FX reconcilation process that calculates FX P/L.	Maintain FX rates in an Excel Take FX rate from the day of booking Transactions converted into base currency in the Excel If payment date is different from the invoice date by some days, then use the rate. No FX Profit and Loss	Odoo
	Chart of Accounts	Choose an accounting schema (e.g. in Banana) or import the schema and add additional accounts or continue the balance sheet from the previous year.	Simplified accounting Only base currency	Odoo Best practices in Youtube
	Opening Balances	Usually you keep the file/data from the previous year and simply create a new year.	Create a new account file: In Banana one can copy it from the previous year, when creating a new file for the next year. Verify the balances against the previous year,	link to youtube Journal for opening balances and post it
	Date Format	Date Format: Prefer YYYY-MM-DD, like 2019-01-19