Accounting has experienced several amendments in just last one or two decades. It has started from handwritten books and now has evolved to software-based computer programs. Accounting softwares are installed in each and every business enterprise whether small or large. These accounting softwares are designed to meet every single requirement of accounts as same as they do in handwritten accounts. The same facilities are equipped in them, including an additional facility of General Ledger Account.
Everyone has heard the term General Ledger in the field of accounting. But only a few of them have knowledge about the proper utilization of this account.
General Ledger is a type of account which displays all the accounts used in the accounting process by a firm. It shows all accounts relating to assets, liabilities, equity, income or expenses of the enterprise. By using this account, one can sort, find, organize, store and summarize all the transactions at one point.
General ledger accounts are mostly used in the accounting process where the outsourcing services are carried on. Accountants involving in outsourcing accounting and bookkeeping services use this account on a daily basis, in order to review their daily recorded transactions. General Ledger is out of one kind of services provided by the outsourcing firms to their accounting and bookkeeping clients of small business, preferably. Outsourced firms always asked for the maintenance of general ledger as an output from the outsourcing companies. It is a kind of financial reports generated at a particular period of time.
ADVANTAGES FROM GENERAL LEDGER
Listing of transactions: General ledger provides the facility to an accountant to view the list of transactions of all the accounts at one platform. It can show you the transactions from all previous and present accounting years. You can add filters to customize your choice according to your account and time period.
Updating transaction: Transaction list displaying in this account will also be helping in updating them. You can modify or even delete them according to your choice. This is easy, are you want to do modification in large number to entries.
Review data: This account facilitates accountants of reviewing the recorded data. Everyone wants to get ensure about their work so that there will be fewer chances of errors. Any person can check his/her work that is doing the accounting process transactions by just going to this account. He can clarify his work and make himself double sure about his work done.
Understand & Checking Classification: General Ledger can displays transactions according to your need, by just applying filters. This step is beneficial in understanding and checking the classification of the previously done transactions. This task can help in lowering the errors in the recording of transactions and to classify them.
Helpful In Financial Reports: The total amount shown in the ledger of each account, are the balances only which are to be transferred while making the financial statements of the company. The balances of every account are posted into the income statement and balance sheet from here only.
Spot Errors: It is very easy to spot the errors done by any person in the general ledger account, as when all the transactions will be displayed as accordance with the date, classification, and name, mistakes will be very easy to spot.
Period Check On Accounts: You can keep your regular check on all your important accounts of the company, by just matching the monthly and even weekly balances of them. Differences can be easily seen when the regular check is been done in the previous period.
General Ledger is the kind of bonus which comes in the closed package along with the computer-based accounting software. It is suitable both for the short and big enterprises. So what are you waiting for? Start utilizing it efficiently and it will surely help you a lot in managing even your small business very efficiently.
At, ACCOUNTING OUTSOURCE HUB, we understand the key feature of general ledger to your accounting firm, which provides you to track your business from time to time. And we are enriched in providing the output, which also includes General Ledger account as a final product to you.
Our team of skilled CA and accountant can help you to track any error in the accounting process by just reviewing the general ledger account and they can resolve the error and will ensure the proper maintenance of your books. It is the part of our basic bookkeeping and accounting outsourcing services provided to our outsourced clients, at very affordable prices.