General Ledger Accounting
General ledger accounting is one of the most important functions in your business, calling on the need for expert oversight to reduce the risk of costly errors. Your general ledger system controls most aspects of your accounting function, with every journal entry, sale and expense running through the accounts. Many businesses overlook the importance of new general ledger configurations and maintenance, leading to financial and tax reporting issues down the road. However, JS Morlu can take this burden off your plate, allowing for an accurate system setup and strong controls going forward, giving your business the tools needed to reach new markets and secure steady growth.
What is General Ledger Accounting?
A general ledger is a listing of all the accounts your business has setup in your accounting software. There will be an account for every income statement and balance sheet item to track the money flowing in and out of the accounts. As a result, general ledger accounting promotes the policies and procedures surrounding these accounts, focusing on accurate reporting and setup. Moreover, general ledger accounting records each transaction that flowed through the account during a specified time period, which is critical for producing financial statements that will be used for management decisions and the tax return. In addition, both small and large businesses in every industry need to have proper general ledger accounting to ensure mistakes are limited and reporting is accurate.
What Services Does JS Morlu Offer?
JS Morlu offers a wide variety of general ledger accounting services in conjunction with bookkeeping services. Our general ledger accounting services are tailored towards initial setup and maintenance, giving your business the tools needed to have an operational accounting system. Furthermore, once the initial general ledger is setup, we can work with you to complete monthly procedures, ensuring optimal functionality. Having an independent party oversee your system will lead to various different benefits that you won’t want to miss out on. Among the list of services we offer include:
General Ledger Setup
Starting a new business becomes overwhelming fast, which is why JS Morlu offers new general ledger setup services. We will work with you to uncover which accounting system is right for your new business. After you find the right accounting system, we will set up your chart of accounts based on your business needs. The general ledger needed for a medical practice is vastly different from one needed by a contractor business or a not for profit organization, making it critical to create a beneficial system tailored to your business.
New General Ledger Configuration
The general ledger configuration determines how transactions and journal entries will flow through to the financial statements and reports. An accurate configuration is needed to create a strong accounting system. JS Morlu works with dozens of clients to set up effective internal controls in your general ledger to reduce hiccups in your everyday accounting procedures. Moreover, our general ledger configuration services can be tailored based on your business needs. For example, if you only need your income statement transactions configured, we can create a customized service around that request.
General Ledger Maintenance
Your general ledger needs consistent maintenance and oversight to verify everything is flowing through to the correct place. Your general ledger acts as the backbone of your accounting function, meaning if there is an incorrect set up, the mistake could keep repeating itself, going undetected. In addition, JS Morlu can provide bookkeeping services to help your business regulate the general ledger through bank reconciliations and other general ledger procedures. For specific details on which maintenance procedures are right for your business, reach out to a team member at JS Morlu.
General Ledger Conversions
Sometimes your current accounting software isn’t cutting it. In these cases, you don’t want to start from scratch building a general ledger. Instead, work with JS Morlu to convert your current general ledger over to a new accounting system without a complete data loss. JS Morlu will handle the entire process, from start to finish, giving you peace of mind that your important accounting information is in safe hands. For assistance finding the right accounting software based on your needs, schedule a consultation with one of our knowledgeable team members.
Other General Ledger Services
We understand that there is no one-size-fits-all approach when it comes to the general ledger of your business which is why we offer customized service packages. You can work with one of our team members to put together a list of general ledger services your business needs and then have a service package tailored to fit your needs. Moreover, as your business begins to grow, the general ledger services you need will expand as well. JS Morlu can work alongside you as your business grows, making us your trusted expert to turn to.
What are the Benefits of General Ledger Accounting?
General ledger accounting creates many benefits for business owners. The first benefit is the detection of fraud and noncompliance. Improper accounting can lead to asset misappropriation and fraud going undetected for a long period of time. If expenses are being booked randomly with no oversight controls, the opportunity to conduct fraud is a threat to your business. With general ledger accounting done by an independent third party, like JS Morlu, this risk is minimized. Moreover, general ledger accounting saves you time at the end of each year when the annual tax return is due. Having transactions recorded throughout the year saves hours of work recording income and expenses from months ago.
One of the greatest benefits businesses realize from frequent general ledger accounting is access to real-time data and accurate reports. The ability to open your accounting software and see how much cash you have in the bank leads to more informed business decisions. If you notice your cash balance is running low, you can draw on a line of credit or defer the expense until income comes in, promoting effective cash flow procedures. Furthermore, most accounting software programs come with report creation features to track accounts receivable. When there is transparency into the billing function, you reduce the risk of having to write off receivables as uncollectible.
What Different General Ledgers Should My Business Have?
Your business needs a general ledger account for each line item on your financial statements. This includes accounts for the assets, liabilities, equity, income, and expenses. Some businesses will have a different account set up based on the industry they operate in; however, a lot of the basic accounts remain the same. Among the basic general ledger accounts you should have include:
- Accounts Receivable Ledger – This ledger tracks income owed to your business. Without a ledger tracking this information, you may forget to collect payments from customers, ultimately reducing your profit.
- Accounts Payable Ledger – Opposite of the accounts receivable ledger is the accounts payable ledger, which tracks the amounts your business owes to third parties. This ledger helps you avoid missing payments and racking up late filing penalties.
- Bookkeeping Ledger – This general ledger encompasses multiple different ledgers to keep your business on track with regular bookkeeping. Often times multiple different subledgers make up this ledger.
- Payroll Ledger – A payroll ledger includes all the relevant payroll accounts, such as wages, taxes and other expenses related to payroll.
- Inventory Ledger – An inventory ledger tracks all the goods purchased and sold, directly flowing into the balance sheet and income statement.
- Expense Ledger – An expense ledger is comprised of balance sheet accounts that include cost of goods sold, selling, general and administrative expenses.
- Petty Cash Ledger – All immaterial cash transactions will be recorded here. The balance in this ledger should not be significant and is not the primary cash account.
- Budgeted Ledger – A budgeted ledger is where you want your account balances to fall. This ledger can help you make purchasing decisions to stay on track and achieve your goals.
- Checking Ledger – All bank accounts will be recorded in the cash ledger. There is often a difference between the bank statement and what cleared the bank, making this ledger important to keep track of.
- Sales ledger – A sales ledger includes all sales and returns. Like the checking ledger, the sales ledger is a key component of the overall general ledger.
- Trading Account General Ledger – If your business holds investments, a trading account ledger may be needed to track gains and losses.
What Software Programs Does JS Morlu Work With?
JS Morlu is familiar with a wide variety of software programs, giving your business the ability to choose a program that fits your needs. We have an understanding of accounting software programs outside of this list, but these are the ones we work with most frequently. Among the list of software programs we see include:
- QuickBooks Desktop/Online General Ledger
- Sage General Ledger
- Oracle NetSuite General Ledger
- Sage Intacct General Ledger
- Acumatica General Ledger
- Xero General Ledger
For information on how JS Morlu can help with your specific accounting program, reach out to one of our team members.
JS Morlu can provide you with multiple different general ledger services, giving your business the foundation to reach new growth potentials and maintain effective internal controls. Getting your business started on the right foot can make all the difference. For more information, contact one of our knowledgeable team members today.