Businesses are required to keep detailed information about their financial transactions. This information is condensed into what is known as the company’s general ledger. Bookkeepers and accounting staff must have experience with updating and using the information recorded in the general ledger.
Accountants use the company’s general ledger to create monthly financial reports. The general ledger provides a summary of the debits and credits for each of the company’s accounts including accounts receivable, cash, expenses and sales.
Businesses use different types of general ledger software programs such as Oracle or BS1 to post transactions, reconcile accounts and put together financial reports.
Familiarity with the chart of accounts, two or four column T-accounts and the reference numbers that make up the general ledger is required.
General ledger experience involves using bank documents, payroll reports, sales receipts and invoices to update the general ledger. Accounting staff posts adjusting entries, calculate accruals and depreciation costs and balance the general ledger at the end of the month to generate the profit-and-loss and balance-sheet reports for the company.
Managerial and financial accounting courses provide the basic skills needed to use the general ledger.