Whether you are an accountant or a business owner, you have surely come across the term general ledger account. It is one of the foundations of well-organised financial accounting. But what exactly does it entail? And how can you optimise this process with smart software like TriFact365?
What is a General Ledger account?
A general ledger account is a part of the general ledger, in which all financial transactions of an organisation are recorded. Each general ledger account represents a specific type of income, expenditure, assets, liabilities or equity. For example:
- 6000 – Purchase costs of raw materials
- 8000 – Turnover
- 1600 – Bank
- 1400 – Creditors
Every financial entry in an accounting system is posted to at least two general ledger accounts, following the principle of double-entry bookkeeping. This ensures that the balance sheet is always balanced.
Why are general ledger accounts important?
A well-established general ledger structure:
- Enables financial reporting
- Provides insight into performance by cost or revenue category
- Assists with tax returns and annual accounts
- Forms the basis for budgeting and forecasting
Yet in practice, managing general ledger accounts can be time-consuming – especially if you have to book manually or process many invoices.
Working smarter with TriFact365
This is where TriFact365 comes in. TriFact365 is a cloud platform for automated invoice processing that helps companies save time and errors in processing purchase and sales invoices.
What does TriFact365 do in relation to general ledger accounts?
- Automatic recognition of invoice data: TriFact365 automatically reads invoices, including amounts, VAT, supplier and descriptions.
- General ledger proposals based on history or rules: The software can automatically suggest the correct general ledger account based on previously made entries or set rules.
- Linking with accounting packages: Think Exact Online, Twinfield, Visma and more. General ledger accounts set up in these packages are synchronised with TriFact365.
- Faster processing and approval: the use of workflows and automatic booking rules significantly reduces the administrative burden.
General ledger accounts are an essential part of your accounting, but they don’t have to be a headache. By using smart software like TriFact365, you can not only speed up but also improve your financial administration. This will leave you more time for what really matters: doing business.
