eBook

How to Simplify Journal Entry Accounting and Improve General Ledger Efficiency

5 Best Practices for Journal Entries

Simplify Journal Entry Accounting and General Ledger Efficiency to Streamline the Month-End Close

According to recent studies, a significant pain point for finance and accounting teams in the month end close is journal entry accounting. This is especially true of a manual journal entry process, where creating journal entries, the review and approval process, ensuring the completeness of the trial balance — and everything in between — consumes a significant amount of time and effort for the Office of Finance. An overly complex journal entry accounting process not only reduces already-limited time to complete the month end close, but can also jeopardize general ledger efficiency and accuracy.

How can finance professionals simplify journal entry processes for their organization? To begin, Trintech found the most common sources of pain in the journal entry accounting process. See if you identify with any of the following issues:

1. Difficulty in the Creation of Journal Entries

More than half of the respondents in a recent Trintech survey stated that the creation of journal entries was their biggest pain point in the journal entry accounting process.

2. Confusing Approval and Review Process

A lack of clarity as to who is supposed to approve the journal entry and the correct way to do that significantly reduces general ledger efficiency, and can produce unnecessary risk for the organization.

3. Time-Consuming JE Posting

Manual processes that rely on spreadsheets cause pain and frustration when posting journal entries. There is often a lack of standardization in formatting and the general use of spreadsheets that generates inaccuracies.

4. Challenging Overall Journal Entry Process

Whether it’s because business partners require rapid postings to review figures or increased write-offs, many F&A professionals struggle with a challenging, complex journal entry process overall.

5. Decreased Quality of Journal Entries

When auditors challenge the accuracy of the trial balance, how can the Office of Finance ensure their figures are correct?

If you struggle with any of these issues in your own journal entry process, you’re not alone and there’s time to improve! This resource explores 5 best practices in the journal entry accounting process and how your organization can implement them.