THE DOOD FIELD GUIDE
What is a ledger? Follow the transaction
A ledger groups transactions by account so your team can inspect movements and reconcile balances.
By Mrunal Walke ↗ The account view of your records
A general ledger organises accounting entries by account, such as bank, revenue, expenses or accounts receivable. Each account has a balance and a sequence of movements. A customer subledger gives more detail about what individual customers owe and should reconcile to its related general-ledger balance.
Use a simple illustrative example
Suppose a business issues a 1,000-unit service invoice on credit, ignoring tax and other adjustments for this example. It records a debit of 1,000 to accounts receivable and a credit of 1,000 to service revenue. When the customer pays, it debits bank and credits accounts receivable by the same amount. Payment clears the receivable; it does not record revenue a second time.
Keep the evidence behind an entry
Store the transaction date, amount, account, source reference and explanation. Your accountant should confirm account selection and recognition timing for your business. A useful system lets a reviewer trace a balance back to invoices, payments or approved journals rather than relying on an unexplained total.
Reconcile before trusting the dashboard
Compare bank records to cash entries, customer detail to receivables and supplier detail to payables. Investigate unmatched or duplicated entries rather than changing a dashboard number to make it agree. Access controls and review of manual journals help preserve the trail from source transaction to report.
Keep the workflow connected.
MAKE IT PART OF YOUR WORKFLOW
A useful tool. A connected business.
Bring your customer, inventory and accounting workflows together. Tell us where the handoff gets difficult.
