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Finance Planning and Budgeting & General Ledger Basics For Finance Graduates


For finance graduates day by day job searching is difficult in the market because day by day finance industry changing according to the market situation by adopting the different technology's. In the past our finance is started tool from excel to so many advanced finance tool and so many ERPs are developed to do our job is easier but at the same time some kind ambiguity and uncertainty is there to understand about the tools. If we do not about the functionality of finance technology tools can't be developed in the greater way by tech guys and vice versa for finance. We should understand which tool/functionality is developed for what purpose of finance activity to do. Finance is the most of the times deal with credit and debit which is kind of positive and negative balance of changes in the amount and this is the main point to developed any software/tools are developed. But, Best finance ERP is SAP and it is user-friendly to everyone.

We know in the finance every ledger as their unique purpose to do develop and everything is interlinked. General ledger is the main ledger and it is interlinked to the sub ledger to get data from over there to do further analysis. As we are aware of general ledger cycle is all about record to report that mean which are finance transactions are record to which are the reports are required for legal purposes as well as company's. This all are setup in the system in easy way to do our financial activity and day by day so many emerging tools are coming to do our activity and making our life easier.
General ledger important things to do know are:
1. Master data- a. Chart of Accounts: Set of all GL accounts. b. Cost Center: Cost is hitting on which place c. Profit Center:Profit is hitting on which place

 2. Journal Entry's : How we will draft journal entry's in the outside from the system is different because to do easy our work some of the intermediary accounts are used in the system. But ending is same either nature of transactions is debit we will debit and vice versa for credit as per our basic accounting principles. Journal entry drafting and impact to the system should be aware is added advantage. Sub ledger AP, AR and Fixed Assets interface(interlink) to GL

 AP: -payable sub ledger is deal with vendors and the same data will follow into general ledger to make reports how much liability we have to pay.

 - It is related all expenses and as a debit balance at the same time in software positive sign will come

- Payment terms are important -Payment run setup activity is crucial

AR: -Receivables sub ledger is deal with customers and the same data will follow into general ledger to make reports how much revenue we have to receive .

 - It is related all incomes and as a credit balance at the same time in software negative sign will come
-Dunning terms are important -Cash application activity is crucial




Fixed Assets: -Receivables sub ledger is deal with customers and the same data will follow into general ledger to make reports how much revenue we have to receive .

 - It is related all incomes and as a credit balance at the same time in software negative sign will come

-Deprecation calculation and scrap as well as setup of depreciation run.







Finance Planning And Budgeting:
Planning is required for everything of course it is more important for finance because organization will run if sufficient funds are there otherwise organization can't be run. Organization activities will go good when organization leads with the profit and there is no sentimental aspect anywhere if you are passionate to do something also finance can't be support in this situation. Budget mean we will plan for a certain amount to do certain activity but in reality it may be exceeds or may be short fall funds so experience is matter for every finance planner. FPNA is not a creation and it is routine process to practice to lead more profits. FPNA reporting activity is more in corporate because it is crucial for business decisions.

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