Advanced General Ledger Concepts
Modern automated general ledger systems provide detailed and powerful support for financial reporting and budgeting and can report against multiple legal entities from the single system. These systems offer many advanced functionalities and this article will provide an overview of the some advanced features available in GLs.
Enterprise General Ledger Systems:
A general ledger is the heart of a financial system, every company that needs to manage its financials needs one. It is primary tool for recording the company's business transactions, calculating its profit or loss, and tracking its assets, liabilities, and owner's equity. Understanding and implementing built in advanced features and controls can drive business and accounting processes leading to more accurate accounting with less manual intervention.
The modern general ledger systems that support corporations today are not the columnar ledgers of our ancestors. They are robust and provide in-depth insight into an organization—only if one can figure out what they do and how to do it. Users of these modern enterprise suites often feel frustrated by the lack of information surrounding specific functionality or features. This article will introduce the learner to concepts that are commonly used by most of them and in the subsequent articles we will expand on each of these concepts.
Given below are some of the advanced, general ledger concepts, understanding of which is must for any user of modern general ledger systems.
1.Accounting Periods and Calendars
2.Adjustment Period
3.Currency – Functional and Foreign
4.Chart of Accounts
5.Journals – Entry and Import
6.Posting & Balances
7.Review and Approval
8.Accruals and Reversals
9.Recurring Journals
10.Allocations
11.Intercompany
12.Trial Balance
13.Income Statement
14.Balance Sheet
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