Being the most vital part of financial activities performed in a business, general ledger maintenance is meant to keep the record of income and expenditure incurred in the business. It plays a major role in making wise management decisions and keeping control of business activities.
General Ledger is basically the foundation of Trial Balance, Profit and Loss account, and the balance sheet of the business. It should be reconciled from time to time in order to avoid any financial differences in balance sheets. Accounts are prepared by taking help of general ledgers. Since every business dream to gain more profits, it is highly crucial to keep tracking the income and expenses.
General ledger maintenance needs to be done on regular basis by every business so that records remain up to date. Since General Ledger Maintenance required having a plenty of experience in handling accounts, businesses are recommended to hire expert professionals who are experienced to perform varied accounting and general maintenance services including the following:
- Accounting for paid in advance cash- Getting the advance cash/payment from a client requires a lot of careful attention while accounting for it. This has to be done according to the entries done in the company’s accounting records. The major thing to consider here is also the payment mode and then recording the posts to the general ledger. So that, once the product is received, the payment can be accounted for easily.
- Assets purchasing, asset disposal, and journal entries- The purchasing and disposal of assets requires the mental stability as when you purchase a product, the entry has to be done in the company books and at the time of disposal also the elimination of the product from the balance sheet has to be made at that time only.
- Inventory records- Inventory records are as important as any other record in the books of the company, inventory system lets you keeping track and make sure the inventory records are updated completely. Inventory systems are of two types which can be chosen for your organization. These are termed as the Periodic inventory system and perpetual inventory system.
- Payroll related general entries – These entries are basically payroll expenses, whose journal entry has to be made in the payroll general ledger of the company. Because these amounts have been paid, they are counted in the expense account. Anything related to payroll expense during the accounting period of the company will be added to payroll related general entry.
- Record of loans taken, lease rentals, etc.-Any loan taken to fulfill the requirements of the business has to be added to books of the company and any lease given also be posted in the general maintenance to maintain the profit and loss of an organization.
- Reviewing and reconciling the ledger accounts and balance sheets, etc.- Reconciling the ledger accounts means checking the accuracy of the monthly balance sheet of the company that the account balance of the company is correct. This is done to report the correct amount in the ledger maintenance of the company, Cash in Checking.
So, manage your company‘s general ledgers with the help of general ledger maintenance services provider and stay tension free.