Keeping correct financial records is key to managing a successful business. Income and expenses need to be carefully monitored, with financial transactions accessible for account managers to analyze the data therein. Because small to mid-sized businesses usually make important transactions a day in and day out, they especially must always be able to monitor how that money comes and goes.
In the years before the internet rose to prominence, companies kept track of their financial records on paper ledgers or through the use of offline spreadsheet software. Fortunately, technology has evolved, bringing with it new tools to not only make business accounting easier but more reliable through the use of general ledger software.
What Does General Ledger Software Do?
In simple terms, general ledger software takes the basics of bookkeeping and transforms them into a highly functional program. General ledger software allows business owners to organize a wide range of accounts in one place, rather than manage accounts in a physical ledger or via spreadsheets.
With a dedicated general ledger program, account managers can keep track of the company’s financial information and records and employ exceptional payroll processing services. In addition, general ledger software comes with several features that streamline the accounting process and make it easy to check for errors and locate specific pieces of information anywhere within the company’s financial history.
Benefits of Using General Ledger Software
Because general ledger software is a management program, it offers countless customization opportunities for small to mid-sized businesses.
For example, these programs keep financial information in a database, and updates to financial records are made in real-time. As a result, an account manager can quickly and easily locate the information needed in no time flat. Rather than searching through ledger pages for the correct transaction, a simple search populates the desired information.
Data can be imported from other programs and general ledger software can produce visual aids from spreadsheet data. This includes charts and graphs that can be used to illustrate financial information in reports or during meetings. This way, the information is easy to interpret and can save account managers valuable time that would otherwise be spent explaining long strings of financial figures.
With all of the company’s financial data recorded in one program, creating a company budget is relatively simple. In fact, some programs are equipped with designated budgeting tools to make the process even easier. Budgeting tools can employ expense checks, budget enforcement, and elimination of unnecessary purchases.
Because the software ensures that information is stored securely, general ledger software creates a safety net for business account managers. Thanks to the software’s meticulous organization, management can easily locate any information they need.
Additionally, the added security features protect financial records from getting lost. In the past, physical ledgers could be lost, damaged, or destroyed fairly easily, but a software that uses database storage keeps files protected even if the main user’s computer becomes damaged or corrupted.
A general ledger program takes the risks and inconveniences out of standard bookkeeping and replaces them with tools and utilities that ensure accuracy and convenience.
