The
general ledger is basically the end result of the company's
accounting process, and is the source from which all the company's
financial reporting is generated. Therefore, the general ledger
accountant is responsible for ensuring that all business transactions
have been properly accounted for and accurately and completely
reflected on the company's books. A general accountant may also be
referred to as a corporate accountant or management accountant.
What
Does the General Ledger Accountant Do?
The
role that the general ledger accountant plays, and the range of
functions performed and level of responsibility assigned, will depend
on the size and nature of the organization. In a larger organization,
a general ledger accountant may specialize in certain areas of the
overall accounting operation, while in a smaller organization, the
position may involve a wider range of duties and responsibilities.
Day-To-Day Bookkeeping
The
general ledger accountant may be directly involved in the day-to-day
bookkeeping process, that is, he or she may be responsible for
actually recording all the business transactions in terms of
purchases and sales, cash receipts and disbursements, payroll, and
other accounting entries. Or the general ledger accountant may have a
supervisory role and be responsible for directing other accountants
or clerks, and reviewing the bookkeeping.
Reviewing
and Adjusting Accounts and Making Journal Entries-
The
general ledger accountant reviews accounts and makes any necessary
adjusting entries. These may include amortization of prepaid charges
such as insurance premiums, accruals of expenses incurred but not yet
billed, such as materials and supplies received, utilities used, and
employee benefits such as vacations. Journal entries are accounting
entries made in the general journal, as opposed to the purchases and
sales, or cash receipts and disbursements journals. Entries made to
the general journal are then posted to the general ledger, and the
individual account balances are updated. Journal entries include
entries to record depreciation on fixed assets, such as the company's
plant and equipment, entries to record the cost of sales based on
purchases, manufactured products, and changes in inventory balances,
and entries to record accrued or deferred income taxes, based on net
taxable income or loss.
Duties
Some
of the duties commonly performed by the general ledger accountant
include:
-Review
of accounts receivable and accounts payable vouchers.
-Preparation
and control over the monthly accounting closing schedule.
-Review
of the purchases and sales journal and the cash receipts and
disbursements journal.
-Supervision
of the payroll process and review of the payroll register.
-Calculation
and recording of depreciation, amortization and depletion.
-Determination
of the cost of goods sold and inventory balances.
-Review
of the trial balance.
-Account
analyses and reconciliations.
-Bank
reconciliations.
-Preparation
of information required for internal management reports and outside
reporting.
-Budget
control and variance analysis.
-Compilation
of information and preparation of schedules required by internal and
independent auditors.
-Preparation
of tax returns.
How Are The Working Conditions?
A
general ledger accountant works in an administrative role, most of
the time in an office environment with a normal business work
schedule. Depending on the responsibilities of the particular
position, overtime can be expected, especially during critical
periods when it is necessary to meet a deadline, for example to close
the books for the month or year, to prepare financial reports, or to
do tax returns. Depending on the structure of the organization, there
may be occasional travel to subsidiary companies, in the case of a
corporate accountant working in the home office, or to manufacturing
plants or other job sites.
Processing Information
The
general ledger accountant works with information contained in
documents and computer systems. Managing a large quantity of
information is an integral part of an accountant's work. Accounting
requires the systematic and consistent application of accounting
principles, standards, and practices, and the general ledger
accountant, as the person responsible for the accuracy and
completeness of the company's books, must remain focused in
comprehending, analyzing and interpreting data. The work is often
repetitive, involving long hours going over financial information,
but at the same time, the general ledger accountant position is a
professional-level position that requires criteria and discretion in
processing the information.
Information Systems
Much
of a general ledger accountant's work is done on a computer,
including the accounting system itself, as well as word processing
and spreadsheet programs. E-mail and Internet applications are also
important parts of the general accountant's work routine.
Supervision, Teamwork and Relationships
General
ledger work combines a significant amount of time working alone,
under self-direction, within the framework of established company and
accounting department parameters. But this position also involves
working closely with other members of the accounting department in a
teamwork role. The general ledger accountant usually reports directly
to a higher-level position within the department, such as the
accounting manager, controller, or finance and administration
manager. There is also a considerable degree of interaction with
other departments within the organization, to explain accounting
information requirements, to obtain that information, and to
communicate and enforce internal control procedures. The general
ledger accountant may also have a significant role in presenting,
reviewing and explaining financial statements and other reports to
management.
What Are The Requirements?
Qualifying
as a general ledger accountant normally requires a combination of
education, experience, and organizational skills and administrative
abilities. Each particular company will define its own specific
requirements, which may include a degree in accounting, a CPA
license, and/or prior accounting experience.
Education
A
general ledger accountant is a professional, who must have a good
command of generally accepted accounting principles, standards,
practices, and procedures. Therefore, a college degree is usually
required. Depending on the size of the organization, there may be
different levels of general ledger accountants, from entry-level
positions to senior positions for accountants with more experience. A
person with experience in accounts payable or receivable,
bookkeeping, payroll, or other administrative functions may be able
to work in an entry-level position, performing certain aspects of
general ledger accounting. This person may be working in accounting
while pursing an accounting degree, and will be able to move up to
positions of more responsibility once a degree is obtained.
Interpersonal and Communications Skills
A
general ledger accountant often supervises persons in other
accounting and administrative positions, such as accounts receivable
and payable, bookkeeping and payroll, so good interpersonal skills
and leadership qualities are needed. And, due to the interaction with
other members of the accounting department, good teamwork
characteristics are important.
The
general ledger accountant should possess good communications skills,
since this position will have contacts at various levels of the
organization, including with upper management and members of other
departments, as well as a coordination and cooperation role with
internal and independent auditors. This position also involves
communicating and coordinating with third parties, including banks,
customers and clients, vendors, reporting agencies, taxing
authorities, and other governmental and regulatory agencies.
Experience
A
position as general ledger accountant can be an entry-level position,
depending on the requirements of the organization. In a larger
organization, there may be different levels of accountants, and as
experience is gained and performance is demonstrated, there can be
opportunities to move up within the accounting department. In many
organizations, experience is a prerequisite for assuming a general
ledger accountant position. Also, accountants may begin their careers
working in a public accounting firm, and then make the transition to
private corporate accounting.
CPA or MBA
Many
companies establish an accountant's status as a Certified Public
Accountant (CPA) as a qualifying criteria for professional
accountants, showing that they have completed the necessary education
and experience requirements, and have proven their knowledge of the
principles, standards and practices that apply to the accounting
profession. Other companies, while not making it a requirement, may
give preference to a CPA or to a CPA candidate.
Likewise,
a Master's Degree in Business Administration (MBA) may be a
qualifying criteria for employment in some companies, and may
constitute a valuable, but not necessarily required qualification in
others.
What Are The Career Possibilities?-
Experience
as a general ledger accountant can lead to different career paths,
within the same company or in another company, in several different
roles.
In the Company
Persons
who start out as entry-level accountants can move up to higher-level
positions in the company's accounting department, as a senior-level
accountant, accounting manager, controller, or finance manager.
General ledger experience could also lead to a role in financial
reporting, budgeting and cost control, or in business planning. And,
accounting experience, combined with the necessary aptitude,
experience and leadership qualities and capabilities, can also lead
to a career in management.
In Auditing
General
ledger accountants may choose to use their experience to pursue a
career in auditing. The knowledge and experience gained while working
in a company's accounting department can make that person a good
candidate for a position as an internal auditor. Another career
direction would be to move on to a position as auditor with an
independent auditing firm.
Tax
General
ledger accountants may find they have a particular interest and
ability in tax work. Larger organizations may have a separate tax
department, thus opening up this possibility within the same
organization. Or, accountants may choose to work as tax specialists
in a public accounting firm, or start a tax practice of their own.
Information Technology
Systems
development can be another career route for a general ledger
accountant who prefers the information technology aspect of the work.
Knowledge and experience gained as a user, together with education
and ability in information technology can be good preparation for a
career in systems development, oriented toward the accounting and
financial field.
