Easy Cashbook and Ledger Management With Online Accounting Software

However, online accounting software can take care of that: not only is data entry reduced to the minimum but, thanks to it being entirely cloud-based, cashbooks and ledgers can be created in a jiffy as well. In other words, freeing up time to focus on the most important thing: running your business.

When you use online accounting programs, however, your data is entered into cloud storage where your data can be easily accessed. Not to mention that every time you make a new entry the software automatically updates everything from your inventory and bank feed to your financial reports. This means that ledgers and cashbooks are also updated with the most relevant information, reducing manual data entry down to zero – a huge relief for both you and your accountant.

Cashbooks and ledger in online accounting

No matter which accounting solution you choose, two features necessary for creating accurate and reliable cashbooks and ledgers are always present: a dashboard that provides up-to-date information about the current state of your business regarding finances and enables the creation of automated reports. This way you can easily monitor what is happening in your business and make the necessary modifications if certain data deviates from the ones that are supposed to be featured in your books.

However, accounting solutions are – by default – unable to create cashbooks and ledgers in the way most people might understand it. But the beauty of online accounting is that the above problem can be easily solved either by integrating third party solutions to your existing software or by using a complementary program created by the same company providing your accounting software. Such a solution is Xero’s Ledger and Cashbook, two programs specifically created for Xero Partners (bookkeepers and accountants) but equally useful for business owners keen on creating their cashbooks and ledgers on their own.

No matter which solution you choose – or which accounting software with complementary cashbooks program you prefer – if it’s possible to connect to your client’s or your own bank feed, then the software can import all transactions and reconcile them either manually or automatically, even on a daily basis. Since other files are also imported you can easily monitor business performance, manage fixed assets and generate additional reports for any purpose like creating workpapers for the annual audit.