Dolibarr is an open-source ERP/CRM widely appreciated by small businesses, SMEs, and freelancers for its user-friendliness and modular design. Among its key features is an accounting module that lets you easily handle invoices, payments, and complete financial tracking right through to preparing your balance sheet. In this article, we provide a step-by-step guide on how to set up accounting in Dolibarr, automate certain tasks (bank reconciliation, VAT calculation, etc.), and boost your efficiency.

1. Preparing the Accounting Environment

1.1. Verifying Activated Modules

First things first: make sure the modules required for accounting are activated in Dolibarr. To do this:

1. Go to Home > Setup > Modules.
2. Enable (or check) the “Billing/Invoices,” “Bank/Cash,” and “Accounting” modules.
3. Save your settings and proceed to install any additional modules if needed (VAT management, exporting entries, etc.).

1.2. Choosing the Chart of Accounts

Dolibarr offers several default charts of accounts, or you can import your own. Depending on your country and legal structure (micro-business, company, association), choose the chart of accounts that applies to you.

1. In Setup > Modules > Accounting, select your Chart of Accounts (e.g., “France – Plan Comptable Général” if you’re in France).
2. Customize, if needed, the expense, income, or asset accounts according to your company’s activities.

1.3. Setting Up VAT Rates

Managing VAT is essential for invoicing and for recording your sales/expenses.

1. In Setup > Modules > Taxes, configure the applicable VAT or tax rates (20%, 10%, 5.5%, 0%, etc., depending on your sector).
2. Ensure the automatic assignment of VAT to your products and services is correct.
3. Make sure the VAT rates are properly assigned to your product or expense categories.

2. Creating and Tracking Invoices

2.1. Invoice Creation

Using the “Billing/Invoices” module, you can easily generate client invoices:

1. Go to Billing/Invoices > New Invoice.
2. Select the client, the due date, and the product or service lines to be billed.
3. Validate the invoice and send it directly by email to the client.

Dolibarr automatically calculates VAT based on your configured rates. The generated invoices appear in the list of current or finalized invoices, so you can monitor your revenue in real time.

2.2. Credit Notes and Reminders

In case of a billing mistake or a product return, you can issue a credit note:

1. In the relevant invoice, choose Create a credit note.
2. Adjust the product/service lines and validate.

Dolibarr also manages automatic reminders for unpaid invoices. You can set a delay for overdue payments before sending a reminder email to the client, which helps with collection and improves cash flow.

3. Recording and Reconciling Payments

3.1. Receipts and Disbursements

The “Bank/Cash” module allows you to record incoming payments (customer payments) and outgoing payments (supplier payments, various expenses):

1. Go to Bank/Cash > New transaction.
2. Select the bank account, the transaction category (customer invoice, supplier invoice, miscellaneous expense, etc.), and enter the amount.
3. Link the transaction to a specific invoice if necessary.

This step is crucial for keeping your bank balance and cash flow updated in Dolibarr.

3.2. Automated Bank Reconciliation

Dolibarr can automate bank reconciliation if your bank provides statement exports (in OFX, QIF, CSV, etc.):

1. Download your account statement from your online banking portal.
2. In Bank/Cash > Reconciliation, import the statement.
3. Dolibarr then attempts to automatically match incoming and outgoing payments with existing invoices and transactions. You can then confirm or manually correct any discrepancies.

4. Automating Accounting Entries and VAT

4.1. Generating Accounting Entries

Once sales, purchases, and payments are recorded in Dolibarr, you can automatically generate accounting entries:

1. Go to Accounting > Entries.
2. Select the period (month, quarter, year) for which you want to generate entries.
3. Dolibarr creates “sales” entries (for customer invoices), “purchase” entries (for your expenses), and “bank” entries (for payments).

Review these entries for accuracy before definitively validating them (or exporting them to a third-party accounting software if necessary).

4.2. VAT Return

Dolibarr can also help you prepare your VAT return:

1. In Accounting > VAT Declaration, select the relevant period (monthly or quarterly).
2. The system calculates the VAT collected (sales) and the deductible VAT (purchases), as well as any amount payable or refundable.
3. Export the summary to fill out your return on your tax portal, or provide it to your accountant.

5. Generating Balance Sheets and Income Statements

5.1. Financial Reports

Dolibarr offers several statements and financial reports to analyze your company’s health:

• General Ledger: A list of all accounting entries sorted by account.
• Trial Balance: Summarizes the balances of various accounts (assets, liabilities, expenses, income).
• Income Statement (P&L): Shows profits or losses over a given period.

5.2. Preparing the Balance Sheet

Beyond the income statement, the balance sheet lists assets (what the company owns) and liabilities (what it owes plus its equity):

1. In Accounting > Reports, look for the Balance Sheet or the relevant “Trial Balance.”
2. Check the accuracy of entries and overall consistency (cash balances, accounts receivable, accounts payable, etc.).
3. Export as a PDF or spreadsheet to submit to your accountant or for your own records.

6. Best Practices and Tips

6.1. Maintaining Data Consistency

• Updates: Make sure you’re using the latest version of Dolibarr and keep your chart of accounts current.
• Training: Familiarize your colleagues or accounting team with Dolibarr’s interface to minimize data entry errors.

6.2. Scheduling Regular Backups

Like any business application, Dolibarr requires frequent backups (both database and files). If a technical problem occurs, you’ll avoid losing your accounting history.

6.3. Consulting an Accountant

While Dolibarr simplifies your accounting management, it’s important to regularly have your accounts reviewed by a professional, who can advise you on tax optimization and legal compliance.

Conclusion

Managing accounting in Dolibarr—from invoice issuance to balance sheet—allows you to centralize all your company’s financial data in a single interface. With proper configuration (chart of accounts, VAT, automated entries) and features such as bank reconciliation or generating balance sheets, you gain efficiency and a clear view of your financial position.

Don’t hesitate to explore each module in depth and stay alert for updates or add-ons provided by the Dolibarr community. With a bit of practice and careful setup, Dolibarr will become an invaluable ally for your daily accounting operations.