In every business, you need to maintain a set of accounts to manage all the financial transactions regarding assets, liabilities, equity, revenue, expense and so on. All these accounts are summarized in the general ledger which is used to keep a track of the transactions instead of manually handling a bookkeeper or module. They are the financial statements for the businesses just like the income statement. However, unlike the income statements, the ledger accounts are permanent even after the financial year, recording the financial situation of the business.
What is the Importance of Maintaining General Ledger?
Step 1: Prepare Trial Balance
The trial balance of a company can be easily prepared if you have a complete general ledger in your business. All the debit and credit balances are listed in the trial balance account. All the different types of trial balances create financial statements for the company. All the assets, liabilities, equity, revenue, and expenses are arranged in order in the trial balance sheet.0
Step 2: Determines Profit and Loss
Ledger accounts are also essential to determine the profit and loss of the business. Since these are all part of the trial balance, they need to be prepared by the ledger accounts. In presenting the accurate consolidated view of the business expenses and savings, it is required to keep a track of old credit card statements by calculating the profit and loss.
Step 3: Identify Fraud and Unusual Transactions
Since ledger accounts are an updated account chart, it’s easier to spot fraudulent activities and unusual transactions on time. Be it a small or large business, any unrecognized transaction affects the total financial statement of the bank balance. You can track and monitor payments directly from the general ledger and extract revenue information for evidence of nefarious activities.
Step 4: Records Real Revenue and Expenses
The general ledger keeps track of real-time revenue and expenditure to reduce costs and generate more profits. Therefore, this is more essential than maintaining the budget as it has a detailed explanation of all the transactions through the double-entry bookkeeping method; where one account is credited as soon as one account is debited. This helps keep both the amounts equal to maintain balance.
Step 5: Create a Proper Balance Sheet
Preparing a balance sheet of a firm becomes necessary to maintain all the earnings and expenses all year round. They help to evaluate profitability, liquidity and the financial condition of the business, including the cash flow statement and income statement as well. A detailed analysis of the balance sheet gives an idea about the position of the business in the market as you can keep a tab on profits, losses and the financial status of the company.
Step 6: Help the Auditors
The general ledger is an important financial statement for the auditors and financial analysts of a firm. It’s a written insight into the business transactions so that they can get a better understanding of their company. Along with manual data entry, these accounts include entries from different systems as well, so specific codes and formulas can be easily identified by the auditors while analyzing the financial statement.
6+ General Ledger Templates in PDF
1. General Ledger Template
To get the financial position of your business you need to maintain the ledger accounts using this General Ledger Template in PDF format on your device.This template has a well-structured table with all blank spaces that you can fill it up with the required information. You can use ledger paper for your convenience. The template has all the essential factors that you need to complete the ledger accounts with the bank balance. So hurry and download this template now!
2. General Ledger Example
If you are interested in creating financial statements for your business accounts all year round, then we suggest using this General Ledger Example in PDF format that comes with a well-formatted table with all the required information that you can use. Create a summary of your company’s transactions professionally in no time with this fully customizable template at your fingertips. Grab this opportunity now!
3. Request for General Ledger Account Template
Cribbing on balance sheets and financial statements at the end of the fiscal year? No more worries. Download our ready-made Request for General Ledger Account Template in PDF file and enjoy the convenience of a fully editable layout where you only need to add your company information to get your job done! Since it’s compatible with all your editing devices, you can also think of changing its format as well!
4. General Ledger Business Processes in PDF
No more wasting time on tedious ledger accounts as now you have access to our fully ready General Ledger Business Processes in PDF that has been designed to save your time. Keep a track of your company assets, liabilities, revenue and expenditures with a single click. You can maintain journals and setup maintenance with the assistance of this customer-friendly template and save your precious time for some other important tasks!
5. Manual General Ledger Procedure Template
All the expenses of the company can be posted and kept track of with the help of ledger accounts. The smartest way to achieve this is to use our available template Manual General Ledger Procedure Template which can be downloaded right away! You will easily get a well-structured layout and high-quality content that can be used for your convenience anytime you want!
6. General Ledger Balance Sheet in PDF
If you are wondering how to format a kedger account for your business, then you will be interested in using our efficient General Ledger Balance Sheet in PDF as it is quite feasible for your requirement. With a cost-effective layout and professional content, this template will provide assured satisfaction if you download it today! So start now.
7. Sample General Ledger Template
To create efficient financial ledger statements, you need to go through several samples to help you understand the format of a professional account. This Sample General Ledger Template eases your process and lets you enjoy a pre-built format without having to start from scratch. This will also be compatible with all your portable devices so start downloading now!