A general ledger represents the record-keeping system for a company’s financial data, with debit and credit account records validated by a trial balance. It provides a record of each financial transaction that takes place during the life of an operating company

When it comes to keeping track of what customers owe, some important features your accounting platform should have is invoice processing, automatic invoicing, and payment processing. Creating, tracking, sending, and printing invoices is the most basic function of any accounting software, and automatic invoicing and online payment processing make invoicing even easier.

Your accounting platform should be able to handle purchase orders, vendor credit memos, automatic payment, and tax forms. With these features, you can keep your payments organised and stay compliant with appropriate tax laws.

The best payroll features are variable wage schedules, direct deposit, automatic tax calculations, and expense reimbursements and deductions. Some accounting software has sophisticated payroll systems, with calculating hours and processing wages completely automated.

At the minimum, your accounting software should link to your company bank account so you can see cash going in and coming out in real-time. Other features to look for are account reconciliation, bank deposit prep, and cheque handling.

Not all accounting platforms offer reporting features, but those that do will give you valuable insights into your bookkeeping. The most basic will offer income statements to show profit and loss, balance sheets to show assets and liabilities, cash flow statements, and summaries of accounts receivable, accounts payable, and payroll.