Accounting Solutions

Accounting system goals and modules

The function or goal of any accounting system is simple, namely the following:​

  • Track money coming in (Accounts Receivables)
    • Customer level (Receivables)​
    • Company level (Ledger)​
  • Track money going out (Accounts Payables)
    • Vendor level (Payables)​
    • Company level (Ledger)​
  • Track money internally at the company level (Ledger)
    • Intercompany transfers/adjustments​
    • Intracompany transfers/adjustments​
    • Allocations (for the spreading of costs from cost centers to profit centers), if necessary​
    • Asset Depreciation (Fixed Assets integration), if necessary​

These bullet points demonstrate that when money activity takes place it needs to affect two modules.  Since this is the case, it highlights the need and advantages of having tight integration between modules of accounting.  Here are the modules of accounting with descriptions:​​

  • General Ledger (G/L) – Account for financial activity at the company level​​
  • Accounts Receivable (A/R) – Account for financial activity at the customer level through the production of customer invoices/statements and the recording of customer payments.​​
  • Accounts Payable (A/P) – Account for financial activity at the vendor/payee level through the recording of vendor invoices  and a functional selection for payment (SFP) process to record and produce checks/payments.​


Accounting is basically the same for all companies.  The need for a General Ledger (G/L) is universal and because of this, there are many systems that can be bought ‘off the shelf’ that will save companies from having the significantly higher expense of developing and maintaining themselves with the added benefit of being of a much higher quality than anything that can be developed in house.  Similarly, the need for an Accounts Payable (A/P) system is nearly universal as well and the same advantage of buying an already existing well designed and conceived system is in play along with the advantage of having tight integration with G/L.  Lastly, the need for an Accounts Receivable (A/R) system is not as universal as the two mentioned previously, however, if you send invoices to your customers, then, there is a need for an A/R system along with tight integration to G/L to provide the same advantages described for G/L and A/P.


Do you have the 'right' accounting system?  Are you spending too much time closing your books or reconciling?

Give us a call and we can answer these and other questions along with identifying and helping you implement the 'right' software.

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