General Ledger System
Features, Integrations, Benefits, Costs
Having 15-year experience in building financial software and practical knowledge of 30+ industries, ScienceSoft offers digital financial management consulting services to implement reliable general ledger solutions.
General Ledger System: The Essence
A general ledger (GL) system 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.
Read on to learn about the solution’s capabilities, important integrations, amazing benefits it brings, costs and timelines to develop a custom general ledger system.
Each general ledger solution ScienceSoft creates has unique functionality to serve client-specific needs. Here, we have outlined the features commonly requested by our customers:
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.
- Real-time 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.
- 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.
- 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.
- 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.
GL software integration with the relevant corporate solutions helps eliminate double data entry across disparate systems and ensures seamless recording, reconciliation, and reporting of financial transactions. ScienceSoft suggests establishing the following integrations:
- 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.
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.
To streamline integration of general ledger software with relevant business-critical systems to ensure quick and error-free import of financial data.
- Configurable fiscal calendars for various business entities.
- Automated transaction posting to multiple books simultaneously.
- Company-, account-, task-level access control.
- 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.
- Available as a part of the FlexiFinancials package.
Large enterprises that need to manage complex multi-entity and multi-currency accounting processes.
Acumatica General Ledger
- 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.).
- 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.
Large businesses that need to prepare consolidated and localized financial statements in multiple currencies.
OSAS General Ledger
- 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.
- 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.
Large companies operating internationally via multiple subsidiaries or branches.
Do You Need a Custom General Ledger System?
Answer a few simple questions and find out whether you should opt for a custom-made solution.
Do you need a GL system with specific features, e.g., verification of financial statements based on custom rules or AI-powered detection of accounting fraud?
Do you need a general ledger solution providing compliance with the local regulations in the regions your company operates?
Do you need to integrate the general ledger accounting system with multiple back-office systems or legacy tools?
Do you operate in a strictly regulated industry (e.g., healthcare, public sector) and need a solution providing advanced financial data security?
Do you need a GL solution with various interfaces for different roles in the accounting team?
Do you plan to evolve the solution with new functional and non-functional capabilities in order to adjust it to changing business and legal requirements?
Do you have large teams involved in GL accounting processes and look to avoid off-the-shelf software offered under a per-user subscription model?
Please tell us a bit more about your needs
Answer at least 3 questions to get results.
You can go with off-the-shelf general ledger software
Looks like market-available GL solutions are a viable option to meet your accounting needs. Turn to ScienceSoft if you need help with choosing the optimal ready-made GL tools, their implementation, customization, or integration with your existing corporate systems.
You definitely should consider custom development
A tailor-made general ledger solution will help you reap the unique benefits that market-available GL software cannot offer. Turn to ScienceSoft to get the detailed assessment of a custom GL system’s feasibility for your business situation.
Custom general ledger software is your best choice
Looks like market-available GL tools don’t fit your specific business requirements and won’t be able to provide the expected operational and economic feasibility. Turn to ScienceSoft to get a consultation on custom GL software development and receive cost and ROI estimates
Average costs for building a custom general ledger system 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.
financial reporting on multiple business entities due to automated consolidation of multi-entity account balances.
Up to 2x improved
financial close time due to automated reconciliation.
90% higher visibility
across enterprise-wide financial transactions due to real-time transaction aggregation.
90% better accuracy
of financial transactions recording due to eliminated manual errors.
of accountants due to automation of repetitive GL-associated tasks.
of accounting fraud with role-based GL access control.
In financial software development since 2007, ScienceSoft helps enterprises build effective general ledger solutions.
General ledger system consulting
- Analysis of enterprise-wide general ledger needs.
- Suggesting optimal features, architecture, and tech stack for the GL solution to ensure it will bring the required improvement of operational efficiency.
- Preparing an integration plan (with A/R and A/P management solutions, asset management system, payroll software, etc.).
- Advisory on security and compliance.
- Implementation cost & time estimates, expected ROI calculation.
General ledger system 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).
ScienceSoft is a global IT consulting and software development company headquartered in McKinney, Texas. Since 2007, we help enterprises build effective general ledger systems tailored to their needs. Being ISO 9001 and ISO 27001 certified, we apply a mature quality management system and guarantee our customers’ data security. If you are interested in developing a reliable general ledger solution, feel free to turn to ScienceSoft’s team.