The launch of new reports and reconciliation by invoice item increases the importance of creating ledger codes. In this article, we will outline a clear definition of a ledger code, as well as its importance in saving time during accounting.
What is a ledger code?
A ledger code is a numeric code that is assigned to an item, an activity or a product in its online store. For example, a ledger code can be associated with an activity, additionally, if a T-shirt is also attached to the activity it is possible to add a ledger code to this item. In this way, it is possible to view in the new reports, the amount of money accumulated for each ledger code. Isn’t that great?
3 Reasons Why Ledger codes are Important
Once the concept of ledger codes are understood, it is important to realize its importance and why you are going to save your accountant time!
- Organized Records
First, ledger codes allow you to keep organized records, by numeric code, of all transactions performed across the platform. In other words, the creation of ledger codes allows for more complete financial reports, since each item now has a code. In this way, items with the same codes are grouped together.
- Real Time Reporting
Then, whenever there is a transaction, it is reflected in real time on our reports. You will now be able to compare your total sums without having to export multiple reports at a time. All the information in ONE report!
- Easy Accounting
Finally, creating your ledger codes for each item will allow you to facilitate data entry into your accounting system. Thus, when you reconcile a payment by invoice item, it is possible to see on the report which items the payments are associated with.
Note that once you have created the ledger codes, you will notice considerable time savings during the accounting process.
In summary, the payment report by ledger code will save your accountants a lot of time since it relates all payments/sales to a specific code. Because of this link between payment reconciliations and ledger codes, the platform will be able to provide tax receipts such as Quebec’s RL-24 even more representative of the amounts eligible for your customers.
If you need help creating a ledger code, you can always check our article: Create a Ledger Code.