How to Set Up Odoo for a Small Australian Business

Setting up Odoo for a small Australian business is straightforward once you know the right steps. This guide walks you through the complete setup — from creating your database to filing your first BAS. We'll focus on the modules most small businesses actually need: Accounting, Invoicing, Contacts, and Inventory.

Step 1: Create your Odoo database

Sign up at odoo.com for Odoo Online, or set up an Odoo.sh instance for more control. For a self-hosted solution, install Odoo 18 on your own server or VPS.

• Odoo Online — Simplest option, managed hosting by Odoo. No server management required.
• Odoo.sh — Odoo's PaaS platform. Good for businesses that need custom modules or staging environments.
• Self-hosted — Maximum control, requires server administration. Popular with Australian businesses that need data residency.

Step 2: Configure company details

Go to Settings → General Settings → Companies and enter:

• Company name (exactly as registered with ASIC)
• ABN (Australian Business Number)
• ACN if applicable
• Registered address
• Phone and email
• Logo (used on invoices and reports)
• Currency: AUD (should be default for Australian localisation)
• Fiscal year: 1 July – 30 June

Step 3: Install the Australian localisation

Install the Australia - Accounting module (l10n_au). This gives you:

• A pre-built Australian chart of accounts
• GST tax configuration (10% GST, GST-Free, Input Taxed, BAS Excluded)
• BAS (Business Activity Statement) report
• Standard Australian payment terms

Review the chart of accounts at Accounting → Configuration → Chart of Accounts. The default chart works for most small businesses, but you may want to add accounts for specific expense categories or revenue streams.

Step 4: Configure GST

If your business is registered for GST (mandatory once turnover exceeds $75,000), verify the tax settings:

• Go to Accounting → Configuration → Taxes
• Verify "GST 10%" exists as a Sales and Purchase tax
• Verify "GST Free" exists for exempt supplies
• Set default taxes on products: most products should default to 10% GST
• Set your BAS reporting period — quarterly for most small businesses, monthly if turnover exceeds $20M

Step 5: Set up bank accounts and feeds

Add your business bank accounts under Accounting → Configuration → Bank Accounts:

• Add your BSB and account number
• Connect bank feeds — Odoo supports automatic bank synchronisation through providers like Basiq
• If automatic feeds aren't available for your bank, import OFX or CSV statements manually
• Set up a separate journal for each bank account (transaction account, savings, credit card)

Step 6: Create products and services

Set up your products or services so you can start invoicing:

• Go to Invoicing → Products
• Create each product/service with the correct income account and GST tax
• For service businesses: create a "Service" type product for each service you offer
• For product businesses: enable the Inventory module and set up "Storable Product" types with costs
• Set default sale prices (ex-GST in Australia)

Step 7: Configure invoicing

• Add your logo and payment details to the invoice template
• Go to Settings → Accounting → Customer Invoices to customise the invoice layout
• Add your bank details (BSB + account number) for direct deposit payments
• Set default payment terms (e.g., "Due in 14 days", "Due in 30 days")
• Enable online payments if you want customers to pay via credit card (integrates with Stripe)
• Ensure invoices show ABN — required by ATO for tax invoices over $82.50 (inc GST)

Step 8: Add contacts

Import your existing customers and suppliers:

• Go to Contacts and use the Import button to upload a CSV
• Include: name, email, phone, address, ABN (for B2B), payment terms
• Mark contacts as "Customer" and/or "Vendor" as appropriate
• Set default payment terms per contact if they differ from your global default

Step 9: Send your first invoice

• Go to Accounting → Customers → Invoices → Create
• Select the customer, add invoice lines with the correct products/services
• Verify GST is applied correctly
• Click Confirm then Send & Print
• Odoo emails the invoice as PDF — the customer can view and pay online if you've configured payments
• When payment is received, record it via Register Payment or let bank reconciliation match it automatically

Step 10: Reconcile and run BAS

At the end of each BAS period:

• Ensure all bank transactions are reconciled (Accounting → Bank → Reconcile)
• Review the BAS report at Accounting → Reporting → BAS Report
• Cross-check GST collected (1A) and GST paid (1B)
• Lodge your BAS through the ATO Business Portal or your tax agent
• Record the BAS payment/refund as a journal entry

Optional: Other useful modules

• CRM — Track leads and opportunities if you have a sales process
• Project — Manage jobs and tasks, track time against projects
• Purchase — Create and manage purchase orders to suppliers
• Inventory — Full stock management with warehouses and picking
• Website — Build a basic business website within Odoo
• Helpdesk — Customer support ticketing system