The general ledger account refers to the posting of transactions in double-entry format wherein debit items are on the left and credits are on the right. You can add another column to the utmost right corner which will keep tab of total account activity. This pattern can be compared to what you can find in a check book. This ledger supplies data for the balance sheet over and above the single or multi-step income statements which companies choose from. The ledger can be manual or in the form of computer software which most companies use. The chart of accounts is grouped according to the following categories – Assets, Liabilities, Revenue, Expenses, and Owner’s Equity. A general ledger is sorted out according to this cart with a distinct file, page, register and card for every account.
Functions of General Ledger Accountant
The general ledger accountant is responsible for making sure that the transactions of a certain corporate entity is properly accounted for and replicates exactly the accounting process adopted by the firm. These accountants can also perform the functions of corporate, property and financial reporting. Aside from these tasks, this provider can do daily bookkeeping process such as recording purchases, sales, disbursements, payroll entries, and cash receipts. The accountant evaluates accounts and makes necessary adjustments regarding entries. These consist of prepaid charges (insurance premiums), employee benefits, accumulated expenses that have not yet been billed and used utilities.
Software has been designed to make the job of the general ledger accountant easier. If you are able to procure the appropriate software, you can make substantial progress in financial management capabilities. The application covers the continuum from uncomplicated to one that is rich in features and fully capable. You need to choose one that will help you achieve your goals in this field of finance.
The major function of this program is to automate account balances while in the process of carrying out the transaction. It includes the account head and entry columns of the transactions. These are the credit and debit entries of that specific account. The sum of said transactions will provide the balance of that account. The same principle applies to the sub-account. You only need to change the account name with that of the child account with regards to the top account.
This software application for general ledger accounting gives management updated information that helps in facilitating temporary and long-term business decisions. It takes into account controls and audit traces that guarantees accurate information is reported. Companies require typical reports such as balance sheets, income statements and cash flow to determine the progress of the enterprise. These business reports are also utilized in collecting information to file tax returns while banks require these for receiving and keeping business loans.
The benefits of the general ledger account software are the following:
- Viewing and monitoring account transactions
- Ensuring proper maintenance of accounts
- Generate income statements and balance sheets
- View transaction details for each account
- Check and balance sub-accounts
The software program combines with all transaction accounts, balance sheets, income statements, account adjustment, and profit and loss statements.