As we discussed in, What is ERP – Financial Tools, the financial accounting module of an ERP package provides business owners with company-wide control and integration of financial information. Over the past two weeks, we’ve looked at Acumatica’s Accounts Payable and Accounts Receivable modules within the Financial Management ERP suite and how they help businesses streamline their financial processes and position themselves for growth. Today, we will discuss the heart of the financial package of an ERP system – the general ledger (GL) module.
What is General Ledger (GL) Software?
A General Ledger (GL) application accumulates the results of all other accounting operations. A GL application provides traditional financial statements such as income statements and balance sheets. It is the central repository for your financial information that includes your chart of accounts, financial periods, ledgers, allocations and more. Entries can be made directly into the GL, or they can be made from other application modules and then posted to the GL module.
What Can General Ledger Do for My Business?
Your general ledger application will provide management with accurate, up-to-date information to make short- and long-term business decisions. It also includes the controls and audit trails necessary to ensure that the correct information is reported. Income statements, balance sheets and statements of cash flow are all standard reports needed by management to judge business progress. Also, these key business reports are used to collect information to file tax returns, and banks require them to receive and keep business loans.
One function of general ledger software is to provide you with the ability to set up accounts or sub-ledgers and track entries within those accounts. Accounts or sub-ledgers generally fall into one of two categories: balance sheet accounts and income statement accounts. You can further organize accounts by business function. Accounts or sub-ledgers can be set up by departments or by other logical divisions including payroll, utilities, rent, equipment, insurance, supplies, inventory control, business programs, advertising, or profit centre.
Another critical function of general ledger software is the auditable trail of all of your financial transactions it provides you. The ability to reference your financial records over the history of your business provides the ability to identify and rectify errors and discrepancies, even at much later dates. The general ledger also provides the reporting necessary to show compliance with GAAP, IFRS, DCAA, FASB, and GASB standards among others.
Key Benefits of Acumatica’s General Ledger Module
Work From Anywhere
- Access all your general ledger features from anywhere using any popular web browser.
Streamline Data Entry
- Reduce time spent entering data with predictive entry and flexible screen layouts.
- Save time by automating the posting of all financial transactions and eliminate time-consuming accounting tasks.
- Use advanced security features to limit available accounts and sub-accounts.
- Generate better reports in less time using integrated query and reporting tools that work with your account structure.
- Streamline your reporting by creating consolidated financial statements between related companies.
Speed Up Approvals
- Build workflow and approval routes that accelerate your current business processes.
- Increase your customer service efficiency with easy access to historical transactions.
- Simplify purchases between related companies by eliminating the need to print checks from one company to another.
Work Locally & Globally
- Use multiple currencies, translation, consolidation and flexible financial periods to support your operations around the world.
- Enhance productivity with the ability to “drill down” from the general ledger to individual transactions and source documents.
- Strengthen your business management using customized departmental, cost centre, profit centre or other divisional reporting capabilities.
- Improve understanding of your business results by comparing to historical data.
Think Acumatica’s Financial Management Software could be a game-changer for your business? Find out more here.
Have any questions about Acumatica or want to request a demonstration? Contact our team.
Remember, the company you choose to implement your software dictates the success or failure of your software investment. At Aqurus, we’re passionate about providing superior ERP solutions and support.