What is a Unified Ledger Accounting system?

Ledgers are the backbone of any accounting system. They are the central repository for all accounting data and are essential to Financial Reporting.

Traditional Accounting

There are three primary types of Ledgers: General Ledger, Sales Ledger and Purchase Ledger.

Traditional Financial Management Systems or ERP Systems work in a modular structure, using three separate ledgers, (general, sales and purchase). Which in turn means accounts are reconciled by comparing entries, then updated for reporting and analysing which are all time consuming and ineffective.

This means that the financial team still must spend hours preparing statutory and management reports/accounts.

What is a unified ledger system?

A unified ledger accounting system, on the other hand, uses a single book. All transactional data is put into one table where two entries, a debit, and a credit, are made simultaneously.

Furthermore, a unified ledger system relies on a user-definable analysis codes for reporting purposes instead of a fixed structure of account codes. Which in turn keeps the chart of accounts simple.

Unified ledger systems are a breakthrough in accounting software. It streamlines financial reporting and provides users with real-time visibility into their data, deliver actionable insights and facilities collaboration among different branches and locations.

What are the benefits of a unified ledger system?

Unified ledger systems save time. As they are single entry systems they always balance and do not need reconciling among the general, sales and purchase ledgers.

So, reports can be created and delivered immediately with combined / unified data across all ledgers.

If you’re looking to utilise an MRP system and want to save time on your accounting processes, then a unified ledger system, such as the one found in Advanced Business Cloud Essentials, could be the perfect answer for you.

The HBP GroupWho Are We?

Our organisation consists of three companies; HBP Systems Ltd. Kamarin Computers Ltd and Jugo Systems. HBP are based in Lincolnshire, Kamarin in Cambridgeshire and Jugo in Hampshire. Between us we cover the vast majority of the UK and work under The HBP Group name to provide a seamless service between our northern and southern offices.

We specialise in providing Cloud MRP software solutions which help manufacturers increase efficiency, reduce waste, delight customers, improve reporting and give them the time to focus on running their own business.

Author: Phil Denham

Published on: November 25, 2020

Categories: Uncategorised

Tags: advice, article, blog, What is Unified Ledger Accounting