General Ledger Accounting System: Features, Integrations, Benefits, Pros of Custom Software

General Ledger Accounting System - ScienceSoft

Having 14-year experience in building financial software and practical knowledge of 30+ industries, ScienceSoft offers enterprises software development services to implement reliable general ledger solutions.

General Ledger Software: the Essence

General ledger (GL) software aggregates financial transactions across multiple business entities in real time, structures and reconciles them, and provides data to generate consolidated financial reports. The solution is especially helpful for companies having subsidiaries or branches that use different functional currencies, accounting calendars, or operate under specific local regulations.

GL software integrates with accounts receivable (A/R) and accounts payable (A/P) management solutions, an asset management system, payroll software, treasury software, etc.

The implementation of a custom general ledger system takes 6+ months. Average costs for building GL software are $140,000 - $400,000, depending on the solution’s complexity. Annual ROI for custom general ledger software can reach up to 220%. An average payback period for such a solution is about 7 months.

General Ledger Software: Key Features

GL entry management

  • Real-time import of external and intercompany financial transactions from relevant sources.
  • Automated GL entries to the pre-defined books or to multiple books simultaneously.
  • Rule-based journal entry approval workflow.
  • Scheduled recurring and reversing entries.
  • Automated generation of closing entries (monthly, yearly).

GL structure management

  • Chart of accounts (COA) with customizable dimensions (regions, subsidiaries, product lines, cost centers, etc.).
  • User-defined hierarchy of GL accounts and sub-accounts.
  • Rule-based transaction classification and GL coding by account (asset, liability, equity, revenue, expenses, etc.).
  • Configurable subledgers, control accounts for subledgers, GL account segments, and more.

Multi-entity accounting

  • Real-rime consolidation of financial transactions across multiple business entities (company branches, subsidiaries, etc.).
  • Configurable entity hierarchies.
  • User-defined financial close periods for entity-specific accounting calendars.
  • Rule-based elimination of intercompany financial transactions when generating consolidated financial reports.

Multi-currency accounting

  • Recording and tracking GL entries in multiple currencies.
  • Assigning book-specific functional currencies.
  • Automated conversion of foreign currency amounts in GL entries to the user-defined functional currency.
  • Revaluation of accounts recorded in a foreign currency when calculating GL balances in a functional currency.
  • Calculating unrealized gains and losses from foreign currency transactions.
  • Automated conversion of GL balance amounts in a functional currency to the subsidiary-specific foreign currency when generating subsidiary reports.

GL balance management

  • Calculating and tracking total debit and credit amounts, GL balances (by period, account, COA dimension, etc.).
  • Automated consolidation of the account balances across multiple business entities.
  • Rule-based re-allocation of the accumulated corporate account balance to the subsidiary/branch account balances.

Reconciliation

  • Automatically matching GL data on financial transactions with data in bank statements and subledgers.
  • Automated removal of duplicate financial transaction records.
  • Defining the outstanding transactions.
  • Alerts to accountants on reconciliation discrepancies.

Financial reporting

  • Drill-down financial reports (by period, COA dimension, consolidated reports, etc.), including trial balance, balance sheet, profit and loss statement, cash flow statement, tax summary, and more.
  • Customizable report templates.
  • Configurable reporting periods for various entities.
  • Creating comparative financial reports.

Security and compliance

  • Multi-factor authentication.
  • Data-level permissions.
  • Role-based access control.
  • Comprehensive audit trail.
  • AI-powered fraud detection.
  • Compliance with GAAP, SOC1 and SOC2, SOX, GDPR (for the EU), industry-specific and country-specific regulations.

Get Accurate Record of Your Financial Transactions!

ScienceSoft’s team will plan, build, and support your tailored general ledger solution to enable real-time financial data aggregation and structuring and ensure accurate financial reporting across multiple business entities.

Key Integrations for General Ledger Software

Key integrations for general ledger software

  • Accounts receivable management solution - importing data on the amounts paid and due by customers, realized gains and losses from foreign currency transactions from the A/R solution to GL software to create accurate records in asset and revenue accounts.
  • Accounts payable management solution - importing data on the amounts paid and due by a company, including payable tax amounts, realized gains and losses from foreign currency transactions from the A/P solution to GL software to create accurate records in liability and expense accounts.
  • Asset management system - importing data on original costs, depreciation, the current value of fixed assets, and associated revenues and expenses from the asset management system to GL software to create accurate records in asset, revenue and expense accounts.
  • Inventory management system - importing data on inventory transactions (including intercompany inventory transfers) and current inventory values from the inventory management system to GL software to create accurate records in asset accounts.
  • Payroll software - importing data on employee salaries, overtime, bonuses, commissions, deductions, and payroll taxes from payroll software to GL software to create accurate records in liability and expense accounts.
  • Treasury software - importing data on financial transactions under operating, investing and financing activities from treasury software to general ledger software to create accurate records in asset, liability, and equity accounts.
  • Financial planning and analysis software - exporting financial data from GL software to financial planning and analysis software for accurate financial performance analysis, financial forecasting and planning.
  • Bank accounts - importing data on cash transactions for a specified period from bank accounts to GL software for faster reconciliation.

Success Factors for General Ledger Software

End-to-end automation

To eliminate time-consuming, error-prone manual efforts across all GL maintenance stages, from financial transactions aggregation and structured recording to reconciliation and generating financial statements.

Real-time FX rate feeds

To accurately record and track multi-currency financial transactions.

Easy-to-use APIs

To streamline integration of general ledger software with relevant business-critical systems to ensure quick and error-free import of financial data.

General Ledger Software Implementation Costs and Financial Outcomes

Average costs for building custom general ledger software vary between $140,000 and $400,000, depending on the solution complexity.

Annual ROI for a custom general ledger system may reach up to 220%. An average payback period for such a solution is about 7 months.

Benefits of general ledger software

  • 50-500%

    faster financial reporting on multiple business entities due to automated consolidation of multi-entity account balances.

  • Up to 2x

    faster financial close due to automated reconciliation.

  • 90%

    higher visibility across enterprise-wide financial transactions due to real-time transaction aggregation.

  • 90%

    more accurate recording of financial transactions due to eliminated manual errors.

  • Enhanced

    productivity of accountants due to automation of repetitive GL-associated tasks.

  • Reduced

    risk of accounting fraud with role-based GL access control.

  • Off-the-shelf General Ledger Software ScienceSoft Recommends

    FlexiLedger

    Best for

    Large enterprises that need to manage complex multi-entity and multi-currency accounting processes.

    DESCRIPTION

    Rating: Major player on the global market for general ledger software (as per Global General Ledger Accounting Software Market report).

    Key strengths:

    • Configurable fiscal calendars for various business entities.
    • Automated transaction posting to multiple books simultaneously.
    • Company-, account-, task-level access control.

    Cautions:

    • Available as a part of the FlexiFinancials package.

    Features:

    • A flexible COA structure.
    • Rule-based consolidation of financial transactions across multiple business entities.
    • Configurable elimination rules for intercompany financial transactions.
    • Automated GL entries, including recurring and reversing entries.
    • Automated multi-currency conversions.
    • Multi-step and recurring GL balance allocations.
    • Automated account reconciliation.
    • Pre-built financial report templates.
    • Compliance with SOX, IFRS, GAAP, FASB 52, and more.

    Pricing

    Upon request to a vendor.

    Acumatica General Ledger

    Best for

    Large businesses that need to prepare consolidated and localized financial statements in multiple currencies.

    DESCRIPTION

    Rating: Key player on the global market for general ledger software (as per Global General Ledger Software Market Report).

    Key strengths:

    • Consolidated GL reporting across multiple business entities.
    • Automated currency conversions to track and report financial transactions in different currencies.
    • Native integration with other Acumatica financial management apps (A/R and A/P management systems, cash management system, tax accounting software, etc.).

    Features:

    • Role-based access control by accounts and sub-accounts.
    • Financial reporting by user-defined dimensions (product, department, region, etc.).
    • Configurable financial reporting periods for various entities.
    • Automated calculation of gains and losses from foreign currency transactions.
    • Creating custom account balance re-allocation templates.
    • Scheduled creation of reversing and recurring GL entries.
    • Attaching notes and supporting documents to GL records.
    • Drill-down to the source transactions.

    Pricing

    Upon request to a vendor.

    OSAS General Ledger

    Best for

    Large companies operating internationally via multiple subsidiaries or branches.

    DESCRIPTION

    Rating: Major player on the global market for general ledger software (as per Global General Ledger Accounting Software Market report).

    Key strengths:

    • Multiple charts of accounts for various business entities.
    • Multi-language capabilities for international GL reporting.
    • Seamless integration with other OSAS apps, including A/P and A/R management systems, payroll software, and fixed asset management solution.

    Features:

    • 7 pre-built account segments, such as divisions, departments, sub-accounts, and more.
    • User-defined GL coding.
    • Automated creation of reversing GL entries.
    • Rule-based re-allocation of the main account balance to multiple sub-account balances.
    • Customizable financial statement templates.
    • Multi-year reporting.
    • Audit trails for each financial transaction.

    Pricing

    Upon request to a vendor.

    When Custom General Ledger Software is the Best Choice

    ScienceSoft recommends opting for a custom general ledger solution in the following cases:

    You need a general ledger accounting system to provide specific features, for example, GL balance forecasting by account, generating accounting reports on the user-defined account segments summarized from multiple charts of accounts, or automated verification of financial statements based on custom rules.

    You want to avoid costly and effort-consuming integration with your existing back-office systems (asset management system, inventory management solution, payroll software, etc.) or GL software customization to meet your company’s well-established accounting processes.

    Off-the-shelf general ledger solutions do not provide compliance with the local regulations in the regions your company operates.

    Implementation of General Ledger Software with ScienceSoft

    In financial software development since 2007, ScienceSoft helps enterprises build effective general ledger solutions.

    General ledger software consulting

    • Analysis of enterprise-wide general ledger needs.
    • Suggesting optimal features, architecture, and tech stack for the general ledger solution.
    • Preparing an integration plan (with A/R and A/P management solutions, asset management system, payroll software, etc.).
    • Implementation cost & time estimates, expected ROI calculation.

    General ledger software implementation

    • General ledger needs analysis.
    • General ledger solution conceptualization.
    • Architecture design.
    • General ledger software development.
    • Integrating the solution with the relevant systems (A/R and A/P management solutions, asset management system, payroll software, etc.).
    • Quality assurance.
    • User training.
    • Continuous support and evolution (if required).
    About ScienceSoft

    About ScienceSoft

    ScienceSoft is an international IT consulting and software development company headquartered in McKinney, Texas. We provide consultancy and development services to help enterprises build effective general ledger software tailored to their needs, including multi-entity accounting. Being ISO 9001 and ISO 27001 certified, we apply a mature quality management system and guarantee that cooperation with us does not pose any risks to our customers’ data security. If you are interested in developing a reliable general ledger solution, feel free to turn to ScienceSoft’s team for custom general ledger software.