General ledger software is the backbone of accounting, as it provides a record of all financial transactions and every source of income or expense at a company. A general ledger module also tracks financial performance over time to identify potential areas for improvement and can be used to prepare financial statements, such as:
- Balance sheets
- Trial balance
- Income statements
- Statements of cashflows
Most general ledger software packages also include modules for accounts receivable, accounts payable, and inventory. General ledger software is used by businesses of all sizes and in all industries, including long term care. In addition to tracking financial transactions, general ledger software helps teams manage PDPM reimbursement, prepare for inspections and surveys, and avoid potential lawsuits related to neglect or abuse.
When a nursing home administrator is tasked with selecting a long term care software system, they should be careful to choose one with general ledger software that will have the following added benefits:
- Time efficiency: The best general ledger software comes with standardized automation tools. Automating accounting tasks can save a significant amount of time, which can be better spent on more vital tasks.
- Increased accuracy: Human error is a major concern in accounting, and it can cost nursing homes thousands of dollars annually. General ledger software reduces human errors through its reporting, supervision, and approval tools.
- Financial savings: Automation tools increase accuracy and time savings so that long term care facilities do not need as many people in their financial departments. Hence, using general ledger software results in cost savings in the long term for a nursing home.
- Fraud prevention and detection: One of the essential benefits of general ledger software is its ability to help prevent and detect fraud. The software does this by providing a complete and auditable trail of all financial transactions. This audit trail is invaluable when identifying potential fraud cases and preventing them from occurring.
Subledger vs General Ledger: What’s the Difference?
What is the difference between the subledger vs general ledger? A general ledger is the primary accounting record for a business. General ledger software includes all the transactions made by a long term care facility and provides a detailed picture of the company’s financial position at any given time.
A sub-ledger, meanwhile, is a subsidiary ledger that contains detailed information about specific types of transactions. Examples of subsidiary ledgers include:
- accounts payable ledger
- accounts receivable ledger
- fixed assets ledger
- inventory ledger
- purchases ledger
While the general ledger provides an overview of all financial transactions made by a Skilled Nursing Facility (SNF), sub-ledgers provide more detailed information about specific types of transactions. This can help SNFs track their finances more precisely.
Other differences between a sub-ledger and a general ledger are:
- Sub-ledgers form parts of the data that are entered into a general ledger but do not have their own chart of accounts, whereas the general ledger serves as a chart of accounts for a business. To put it another way, a general ledger does not need a sub-ledger to operate, but a general ledger is required for a sub-ledger to work correctly.
- A general ledger account has only one account for each category, whereas a sub-ledger may have an infinite number of account transactions. Your general ledger, for example, has just one accounts payable account. On the other hand, your sub-ledger can have multiple sub-account transactions that make up the total amount of a long term care facility’s accounts payable account.
- A general ledger provides summaries of transactions, whereas the sub-ledger contains detailed information on transactions in the general ledger.
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The 3 Best General Ledger Accounting Software Systems
While the various general ledger accounting software programs currently available on the market may all be useful from a general financial aspect, only some of them will fit the specific needs of long term care. Below, we list the general ledger software systems that meet most, if not all, of the requirements of long term care providers.
The NetSolutions general ledger software system from Experience Care is an advanced tool that provides customizable, user-defined formats for financial reports. Specifically designed for long term care providers, the NetSolutions general ledger enables nursing home staff to create and save financial documentation in multiple formats.
Unlike other simple general ledger software, this long term care software can meet the requirements of multi-facility organizations through modules like CareMetrics.
CareMertics is a software module that enables leaders to access each facility’s data independently while also providing customized options and comparisons. Not only does this analytical tool display valuable data on your long term care software dashboard, but it also represents it in the form of dynamic and visually-stunning graphs for your staff.
- Bank account inquiry function
- Per-patient day statistics
- Budgeting tools
- Journal entry tools
- End-month processing
- Multi-facility processing, consolidation, and comparison
- Integration with NetSolutions accounts receivable billing and accounts payable
2. Sage Intacct
Sage Intacct is a cloud-based accounting software company that offers financial management and accounting solutions. Sage Intacct’s software solution is appropriate for small to medium-sized accounting firms and can deliver financial reporting and operational insights. Additionally, the software has the ability to automate crucial financial procedures.
While discussing subledger vs general ledger, we noted that the types of subledger include accounts payable and accounts receivable ledgers. In addition to a general ledger, Sage Intacct boasts other fundamental accounting tools, such as accounts payable, accounts receivable, cash management, and order management for any accounting department or finance team.
- Real-time reporting
- Expense management
- Project accounting
- Revenue management
- Order management & purchasing
NetSuite by Oracle is an Enterprise Resource Planning (ERP) system that empowers teams with appropriate applications needed for effective business operations. Customers access Oracle’s NetSuite through a SaaS model with a subscription fee that covers the technology.
- Financials software
- Human Resources tools
- Manufacturing Management software
- Inventory Management software
How To Choose the Best General Ledger Software
Each general ledger software program has features that set it apart. To choose the best general ledger software for your facility, though, you will need to consider:
- The care needs of your facility and the accounting skills of the financial staff
- The Cloud computing capabilities of the general ledger program
- The facility’s budget
- Software add-ons and integrations
- Feedback from the accounting staff
By thoroughly investigating their options, administrators can ensure that their facilities get the best general ledger software for managing finances, automating crucial financial procedures, and accessing real-time insights into their business operations.
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