Big business requires large-scale finances. For enterprise-level organizations, this means leveraging an accounting system equipped with an enterprise ledger. This isn’t a case where any general ledger product will do, there’s too much at stake. If you’re bringing in millions of dollars in revenue and have thousands of expenses to manage simultaneously, you need a general ledger system with the bandwidth to handle all the moving parts.
What is an Enterprise Ledger?
What differentiates the general ledger of a mid-sized business and a large corporation? On principle, both will share features that make them able to organize finances accurately and efficiently. The key differentiator is the level of performance and depth you can leverage from the general ledger. Enterprise organizations need more of everything. This means more flexibility and resilience to handle a larger amount of financial transactions and account information.
If you’re a large business, you need a general ledger that can grow with your business’ demands. You’ll also want features designed to lighten your financial management burdens and process debits and credits as efficiently as possible. Let’s take a closer look at these features.
The general ledger is the keystone of any accounting platform. If you’re a large organization, you’ll need an intuitive general ledger that’s equipped to serve enterprise-level operations. This ensures your financial system can effectively handle the massive amount of transactions your company is generating.
The general ledger needs to be flexible enough to help your organization manage finances without skipping a beat. Not all general ledgers can adapt to your needs, which is problematic when you’re managing a large corporation. Do you really want your back office to suffer from a general ledger that can’t keep up? One major advantage of Accounting Seed is our ability to scale with an organization’s accounting needs to accommodate the complexities of your corporation.
An enterprise general ledger needs to have the following features/functions to effectively handle the complexity of a large corporation.
- Increased data management and storage
- High-volume batch processing
- Advanced, real-time reporting
- Robust features for consolidations of multi-legal entities
Functions like high-volume batch processing let your team handle large-scale transactions quickly and reliably, preventing you from getting backed up by the books. This allows operations to continue growing without risk of your general ledger being unequipped to cope with the influx of more data, consolidations, and transactions. The enterprise general ledger should also feature a chart of accounts that you can easily manipulate and adjust according to the changes and consistencies of your business.
Automated Enterprise General Ledger Features
High-volume accounting is demanding on both the enterprise general ledger and your staff. For a large company, manually processing accounting data is not only time-consuming but also costly. The busier your organization is, the more chance you have of making data errors and creating inconsistencies in the accounting system. Automation eliminates redundant work and helps you keep your financial data accurate throughout your organization.
Enterprise ledgers, like Accounting Seed’s, automate back office workflows and financial consolidation activities. This gives companies the financial details they need in real-time while streamlining the whole financial process.
If your company is composed of multiple entities, you need a system that will facilitate all their financial requirements in a single space. Therefore, enterprise ledgers should also have a multi-ledger function. Why is this important?
Using separate databases and logins for each company or entity within your organization adds extra steps to an already complicated financial process. This makes it harder for you to manage the different transactions and data of your company as a whole. This is what makes QuickBooks a risky choice for growing companies. Juggling separate ledger databases also opens your company up to data inconsistencies.
Multi-ledger functionality should also enable users to assign existing lists, process definitions, or charts of accounts to the companies in your corporation. Additionally, this function facilitates the sharing of specific data like customers and sales info between entities. With Accounting Seed’s multi-ledger, you can also set up new accounts or companies with complete customization for internal transactions, bank accounts, and more all in one database.
If your company works with different currencies, your enterprise ledger should be equipped to handle the different rates and exchanges. Being able to record gains or losses based on fluctuations in foreign currency exchange rates will help keep your finances accurate and compliant. This ensures that your teams will have a smooth reconciliation process and help prevent financial delays with your operations abroad.
Customizable and Configurable
Flexibility is a common theme throughout the features mentioned because the general ledger should be tailored to the individual business, particularly a more complex company. To manage unique financial processes and workflows, the general ledger should be customizable and configurable to key business requirements. Instead of making your organization conform to the enterprise general ledger, these features let your enterprise ledger conform to your company’s needs. These features help you dictate the exact specifications of your accounting system, like when transactions post to sub-ledgers and the general ledger system. Besides making life easier, controls like this keep your finances aligned throughout the organization.
Smooth Bank Reconciliation Process
Enterprise ledgers should enable you to clear bank transactions and facilitate quick reconciliations through minimal data entry. With all the moving parts of an enterprise-level organization, your general ledger system should be an easy source of accurate accounting details. One key feature the general ledger should contain is audit trail, which lets you track changes throughout the reconciliation process. This makes reconciliations, auditing, and reporting more efficient and accurate.
Additionally, enterprise ledgers should allow for easy bank imports and support the automated matching of ledger transactions to bank feeds. This lets you clear bank transactions more quickly while facilitating smooth reconciliations that rely on minimal data entry. Bank reconciliation functions should include features that enable you to spot exceptions, manage bank errors, monitor for fraud, and maintain accurate cash balances. Remember, keeping your general ledger accurate and up-to-date with real-time data is mission-critical.
Empower Your Company with Accounting Seed’s Enterprise Ledger
Unlike standard general ledger software, Accounting Seed’s robust general ledger accounting system provides the accessibility, scalability, and flexibility you need to grow and alter your business however you choose. Our enterprise ledger sets the foundation for a financial management system that is intuitive and analytical, which will propel your company to new heights
Want to see Accounting Seed features in action? Schedule a free demo today!