Introducing: Chart of Accounts, General Ledger and Trial Balance

July 10, 2018


Chart of Accounts, General Ledger and Trial Balance: Three new reports that will help you turn the data you have into the insights you need.

Today we’re releasing three new accounting functions in FreshBooks for Plus and Premium plans: Chart of Accounts, General Ledger and Trial Balance.

Feeling like you’re starting to think beyond the day-to-day of running your business? Wondering how you can plan for growth? Now you can do it all, right from your FreshBooks account.

These new, more advanced accounting tools were designed to help you (the business owner) plan for the future of your business. Together with your accountant, you can use the data to accurately plan for long-term success. So, however big you decide you want to grow, FreshBooks now has what you need to get your business there.

Read on to learn more about these exciting additions and how you and your accountant can use them to reach new heights.

Chart of Accounts

Chart of Accounts: What Is It?

The first report we’ll take a closer look at is your Chart of Accounts. Think of it as your foundation for all financial record keeping. In this list, you’ll be able to see the accounts your business has – assets, liabilities, equity, revenue and expenses.

And, as you probably guessed, this document is crucial. You need it to stay on top of the day-to-day and get a sense of how well your business is doing. Even though you can tailor some aspects of the Chart of Accounts for your business, be sure to keep it organized to comply with standardized financial reporting – your accountant will thank you.

 Chart of Accounts: How Does It Work?

General Ledger

Step 1: From anywhere in your account, hover over the “More” option on your blue sidebar.

General Ledger

Step 2:  Click on “Chart of Accounts.”

General Ledger

Step 3: From here you can see all your accounts in one list.

General Ledger

Step 4: If you need to filter accounts by any date range, simply hover over the three sliders at the top of your page and hit “Apply.”

General Ledger

General Ledger: What Is It?

While these other two reports might be new concepts, you’ve probably heard of a General Ledger before – maybe your accountant tipped you off or perhaps you’ve been reading our blog again.

Essentially, your General Ledger (aka “GL”) is a complete record of your transactions that help you prepare for financial statements. With it, you and your accountant will be able to get a better understanding of all accounts and where they stand.

These accounts include:

  • Assets (fixed and current)
  • Liabilities
  • Revenues
  • Expenses
  • Gains and losses

Plus, you can use your GL in tandem with bank statement to validate data and even fix discrepancies on the spot.

But, like all these reports, it’s more than numbers. Your GL is one of the core components of double entry reporting designed to track the health of your business. When you start to plan for growth, you can feel confident that your data is not only accurate, but also verified.

General Ledger: How Does It Work?

General Ledger

Step 1: From your Dashboard, scroll down to the bottom of the screen and click “General Ledger.”

General Ledger

Step 2: Here’s your General Ledger Report. From here, you can export or print it.

General Ledger

Step 3: If you need to filter the information, click the drop-down menu and hit “Apply.”

Trial Balance

Trial Balance: What Is It?

Last but not least, let’s take a look at your third double entry report, Trial Balance. Like the name hints, it lists the closing balances on your ledger so you can be sure your accounts are balanced.

Most businesses use a Trial Balance at month end, quarterly or yearly. So, next time you’re gearing up to prepare financial statements, this report is your best friend (next to your accountant).

Use it to easily examine your list of Debts and Credits to ensure the numbers match up. Spot an error? Don’t panic. You can easily fix it right from your Trial Balance without having to wait until the reports are final.

Trial Balance: How Does It Work?

General Ledger

Step 1: From your Dashboard, scroll down to the bottom of the screen and click “Trial Balance.”

General Ledger

Step 2: Here’s your Trial Balance report. From here, you can export or print it.

General Ledger

Step 3: If you need to filter the information, click the drop-down menu and hit “Apply.”

Conclusion

As you can see, these reports work together to provide you with the insights you need to plan for growth. And if you’re still managing the day-to-day, keep using FreshBooks as you would. But know that if and when you’re ready to set a course for the future, you can feel confident that you now have the right accounting tools to make decisions based in data.


about the author

Senior Copywriter (former), FreshBooks After not receiving her Hogwarts letter at age 11, Shannon began writing to Dumbledore and her love of language was born. A passionate copywriter, wannabe astronomer and curious home chef, Shannon’s creative work has been recognized internationally. Learn more about her work at .


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