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As an accounting professional, your most important modern tool is general ledger software. The right one can mean the difference between capably running an efficient, rewarding advisory firm or stressfully trying to keep up with repetitive, manual tasks.
The ideal general ledger solution will empower you to be a valued strategic advisor and provide an exceptional customer experience for your clients.
What should you look for when seeking general ledger software solutions that work best for your business? We’ll break down the most important features to consider.
Table of Contents
What Is General Ledger Accounting Software?
General ledger accounting software is a cornerstone of any robust accounting system and the central hub for managing all financial data and transactions. This type of software automates essential financial processes, such as invoice capture, reporting, and workflow management, significantly enhancing the efficiency, accuracy, and security of financial accounts.
By providing real-time reporting and automated workflows, general ledger accounting software enables businesses to maintain accurate financial records and make informed financial decisions. This centralization of financial data not only streamlines operations but also ensures that businesses have a comprehensive view of their financial performance at all times.
Ensure Your General Ledger Has the Features You Need to Stay Compliant
It’s always important to cover your bases and . So, when it comes to a general ledger software, the first thing to look for is functionality. Does it have all the features you need to serve your clients? Are there automations and integrations that will help you save time? Is there a full suite of financial reports that you can customize and draw insights from? Can you get everything you need in one subscription and on one platform?
In asking those questions during your research, you will likely come across various tools to help with your accounting needs. To help you get started, you’ll want to look at:
Bookkeeping Automation
- bank import and bank transaction matching
- receipt scanning and AI-powered expense categorization
- recurring billing and payment reminders
- embedded payroll
Advanced Reporting
- chart of accounts
- profit and loss
- balance sheet
- project profitability tools
Compliance Tools
- invoice audit log
- journal entry editing and reports
- tax filing reports and integrations
Key Considerations When Selecting General Ledger Software
Choosing the right general ledger software is crucial for maintaining accurate financial reporting and ensuring compliance with financial regulations. Here are some key considerations to keep in mind:
- Scalability: Ensure the software can grow with your business, accommodating increased data and more complex financial transactions as your company expands.
- Real-time reporting: Look for software that offers real-time financial reporting, allowing you to monitor financial performance and make timely, informed decisions.
- Automated workflows: Automated workflows can streamline financial processes, reducing manual entry and minimizing errors.
- Customization and flexibility: The software should offer a high level of customization to meet your specific business needs, from tailored financial reports to unique workflow configurations.
- Customer support and training: Robust customer support and comprehensive training resources are essential for getting the most out of your general ledger software. Ensure the vendor provides adequate support to help you navigate any challenges and maximize the software’s potential.
Feature Fatigue Is Real
When a technology solution has too many features, it can be overwhelming for users. This is a common issue with general ledger software. Many products offer capabilities that are not necessary for most accounting firms, especially those that serve small, service-based businesses. The trade-off can be found in steeper prices and more complex interfaces that slow you down instead of saving you time.
You can prevent feature fatigue by identifying the functions you need to serve your current and prospective clients. This list will be your north star as you assess general ledger software. If a particular product offers additional capabilities that intrigue you, be wary of what that might cost you in terms of price, time, and usability.
It Offers Collaborative Workflows
Collaborative Accounting will empower me to scale my firm because I don’t have to worry about going back, cleaning up books. The client and I can work together from the start…..It allows me to do more of the advisory type services versus the compliance or the data entry
Historically, accountants and their clients have operated in two different worlds. Clients run their businesses and touch base with you a few times a year so you can make sure their financials are in order and they’re in compliance. This process requires time-consuming back-and-forth phone calls or emails and a significant amount of data entry for you.
A general ledger solution that offers can change that dynamic for the better. In a Collaborative Accounting model, your business-owner clients manage some or all of their day-to-day operations, like invoicing, expenses, and payments. This frees up your time to provide high-value services, including strategy, analysis, and coaching. Plus, working more collaboratively is the key to growth for smaller accounting practices. You can move faster, do higher value work, without adding staff or working overtime to do all that compliance work for your clients.
You and your clients work together in the software, each handling part of the workflow. That way, you both have visibility into the business and a deeper understanding of it. The goal is a seamless experience where the accounting professional becomes a true partner in their client’s business.
More and more advisory firms are seeking general ledger software that frees them from repetitive data entry tasks and helps them develop deeper relationships with their clients.
It’s Easy to Use
Having an easy-to-use platform to support your collaboration is the secret sauce for success. That’s why your general ledger software should be simple and intuitive to use so you can get up and running quickly, begin streamlining workflows, and take advantage of automation features that will save you time and improve accuracy.
To ensure that you, your team, and your clients can get up to speed fast, take advantage of demos, watch videos, read case studies (particularly from advisory firms like yours), , and speak with sales representatives to understand precisely how the solution works. This will offer insights into how easily it will integrate into your business.
The heart of advisory really is collaboration. That’s just understanding what the business owner is going through, where they’re trying to go, and being able to just tell them…….this is what we think you should do, and here is why
It Provides Great Support
Everybody can use a little help from time to time. Before you invest, you want to make sure that your general ledger solution will be there for you when you need a hand.
Many software companies claim to offer robust support, but, in practice, it comes in the form of automated replies, labyrinthine FAQs, and self-serve chatbots that don’t address the specific issue you’re having. Some solutions offer live support but limit the number of incidents users can report each year.
These are red flags worth investigating before you commit. Find out if the general ledger solution you’re considering has:
- award-winning support
- accounting specialists who can work with you 1:1
- certification training to get you up to speed, fast
- assistance with migrating data when switching software
Is Freshbooks General Ledger the Best Solution for You?
You’ve been thoughtful about the functionalities your advisory firm needs and the kind of workflows you want to implement. FreshBooks is a popular choice for many accounting professionals who serve service-based businesses. A robust general ledger system is crucial for improving efficiency, accuracy, and visibility of financial records.
You know FreshBooks is right for you if…
You Want a Complete General Ledger Solution
FreshBooks supports complete accounting workflows, so you have everything you need to provide accurate, clear financial record-keeping for your clients that is compliant with financial regulations. It also helps in generating comprehensive financial statements like the Income Statement and Balance Sheet. With customizable reports that have enhanced drill-down functionality and a compact view for efficient data analysis, it’s possible to provide deeper financial insights and business planning guidance to your business clients. Automations and integrations allow for more efficient workflows, less manual entry, and increased accuracy.
You Want a Tool That Empowers You to Be a Strategic Advisor
FreshBooks is the only software that offers Collaborative Accounting, which frees accountants from manual data entry, allowing you to offer more astute analysis of your clients’ business financials. The Collaborative Accounting model paves the way for you to offer higher-value services, deliver advisory value at scale, and improve your book of business.
You Want an Easy-to-Use Accounting Solution for You and Your Clients
It’s not enough for your general ledger solution to be intuitive for you to use—you want your clients to be able to effortlessly navigate it, too. When you use the Collaborative Accounting model, your clients will be managing their own invoices, expenses, and payments. FreshBooks rates higher than other platforms for ease of use, according to G2 data gathered in 2020.* Plus, they get the same award-winning support you do.
You Want to Provide a Better Experience for Your Clients
For many accountants, connecting with clients once or twice a year is not a satisfying way to do business. You don’t want client interactions to mainly be about following up on missing information and managing day-to-day bookkeeping tasks. FreshBooks’ Collaborative Accounting framework removes those types of back-and-forth demands and makes it easy for accountants and clients to work together in a single system. The ability to provide data-based business growth strategies and financial planning advice deepens the relationship and offers an enhanced client experience.
You Want Dedicated, Best-in-Class Support
FreshBooks’ award-winning Support team boasts 4.8/5 stars out of 120,000+ reviews. You can count on getting a live human on the phone every time you call. When you become an Accounting Partner, you’ll have access to Collaborative Accounting Certification where you can learn a revolutionary new way to work with your clients in under 4 hours. Plus, you’ll get ongoing education and your own Partner Consultant to help you from start to finish, including migrating your data to FreshBooks. You’ll also have access to a library of resources, including coaching on how to onboard your clients and have collaborative conversations with them.
The Choice Is Yours
Whether it’s FreshBooks or another platform, finding the general ledger software that’s the right fit for you will empower you to become a trusted advisor and scale your business. Take the time to consider what you need to reach your goals.
*Based on Customer Benefits Survey 2020, conducted among 10,000 FreshBooks users.
If Freshbooks is of interest and you'd like more information, please do make contact or take a look in more detail here.
Credit: Original article published here.