Introduction

Gone are the days of the stereotypical accountant head down in books, hand journalizing transactions and hunting out discrepancies. Historically just a static system of record, the general ledger is now an intelligent and dynamic engine at the centre of finance thanks to automation. GL automations aren’t replacing accountants; they’re empowering them. It frees finance professionals from the menial, mundane and erroneous work that has historically characterized the function, enabling them to can move from historians to stewards of the business.

The impact of automation is all-encompassing, from the very start to the end of the regular accounting cycle which results in a process which is quicker, more precise and countless times as valuable to the business. The following are the most significant areas where automation technology is revolutionizing things.

The Core Areas Where Automation Transforms the General Ledger

Repetitive Data Entry Automation: A New Era for Manual Journal Posting

One of the first things you will notice is that it takes away all the monotony of manual data input. Rather than finance personnel manually entering data from different areas, the GL system automatically receives transactions from ISC systems.

• How it works: As we’ve shared in our integration blog, when a sale is finalized, a bill is paid or payroll run from the module itself, the related journal entry that needs to be recorded to your GL accounts are done automatically for you.
• Why It Matters: This eliminates transposition errors, dropped digits and duplicate posting issues. It makes sure that the ledger is always current, so you’re not looking at yesterday’s news, and instead see the real time state of financial position.

Transforming Your Close: Modernizing This Time-Intensive Process

The month end close is known as the single most stressful and time consuming work for finance teams. Automation dramatically accelerates this cycle.

How it Works:

• Recurring Journal Entries: The system offers the ability to schedule entries, e.g: post the same standard monthly entry, like for depreciation or amortization or rent on a recurring basis without manual entry.
• Automatic Bank Reconciliations: The system can automatically propose matching transactions through its bank feed integration requiring little time for reconciliations.
• Workflow & Task Management: Close checklists can be automated with tasks automatically assigned, and managers alerted of completion or lag.
• The Outcome: Companies move out of a 10-15 day close that is painful into a soft close that could take days or even hours – resulting in timely information to help management run the business.

Internal Control Integrity and the Prevention of Errors

Manual management, is too inconsistent and control becomes nearly impossible.

How it Works:

• Validation Rules: The software can be set up to alert or prevent transactions that fail to meet certain tests—such as, say, a journal entry over $5,000 or one posted to the wrong account.
• Automated Approval Workflows: Critical entries (including manual adjusting journals) can be sent to a manager for electronic approval before the transactions post to the ledger. This provides a separation of responsibilities and the prevention of an unauthorized or accidental entry.
• The Effect: This results in a strong control environment internally, and decreases the chances of both accidental error and intentional fraud. The system acts as a guardian of honest and sincere financial health itself.

Improving Reporting and Releasing Strategic Insight

Here’s where the real strategic opportunity of automation is found. With data entry and close being automated, finance is liberated to analyze the data that’s going through the process.

How it Works:

• Scheduled Reporting Distribution: Major financial reports such as the Balance Sheet, P&L and Cash Flow Statement can be automatically created and sent out by email on a schedule you customize.
• Dashboard and KPI Automation: Real-time dashboards can be set to follow key performance indicators (KPIs) such as Days Sales Outstanding (DSO), current ratio, and profit margins that are updated using incoming data from the GL.
• The Impact: The finance team becomes less of history reporter and more an analyst of the present and forecaster for the future. They can analyze the numbers, keep an eye out for trends, explore variances, and offer the kind of insight that allows management to navigate the ship.

The Next Horizon: Robotic Process Automation and AI

Automation is getting smarter The future for automation is intelligence. The new generation of GL software includes AI and ML for more complex functions:

• Anomaly Detection: AI can understand the typical transactions your business makes and highlight when something looks out of place for human review.
• Smart Account Coding: AI-based models that predict or auto-populate the right GL account to a new transaction using Machine Learning model with historical data and vendor fact.
• Predictive Forecasting: AI can assist to produce better financial forecasts by reviewing the historical GL entry with other external components.

Advantages of Intersoft ERP :Streamlined Automation for the Professionals.

At Intersoft ERP develop automation as a system, and not just separate functions in which you can spend a successful professional day. Our platform provides:

• A Frictionless Automated Flow: From the time a transaction is generated anywhere in the business, to its arrival at the general ledger, it’s automatic, controlled and auditable.
• Flexible Not Rigid: We enable you with the flexibility to define recurring items, approval rules and validation processes that fit your business rather than custom code.
• The Gift Of Time: Our main purpose is to liberate your most precious resource your people from the drudgery of manual work. By automating the basics, we enable your finance team to serve as business partners that drive growth far more than just compliance.

Check our General Ledger software features, benefits, and use cases.

Conclusion

The role of automation in general ledger software is nothing short of transformative. It is the driving force behind the evolution of the finance function from a tactical, cost-centric department to a strategic, value-added partner. By automating the repetitive, securing the process, and illuminating the data, modern GL software empowers businesses to operate with unprecedented efficiency, accuracy, and insight. In the modern economy, an automated general ledger isn’t just a convenience; it’s a competitive necessity. Visit Intersoft ERP and book a free demo.

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