General Ledger

[Mike or Penny Novack]

On 2/25/2018 2:06 PM, Dave H wrote:
> Thanks for explaining the distinction Michael.
>
> So I take from all this that the General Journal/General Ledger 
> distinction is an historical distinction no longer in real use with 
> the advent of computerised accounting software.

No, that wasn't quite what I said. Look at it again.

Even with computerized accounting software might want/need this 
distinction. Might WANT the books partitioned.

For example, in an enterprise of some size (not all that big) you MIGHT 
want (for example)
a) The office manager to have a small fund (petty cash) for things it 
was decided could just be purchased without going through the purchasing 
department.
b) Each sales location to be entering individual sales with only the 
daily totals going to main books.
etc.
Not JUST reducing the work load on the main enterprise bookkeeper. Not 
JUST reducing clutter and unnecessary detail in the main books. Not JUST 
that lower level employees can lack access to look at more than they 
need to (do you want EVERYBODY who needs access to be able to enter data 
to look at, for example, payroll to see what somebody else is getting 
paid. Note that with something like that reduced risk that the office 
manager or somebody in a sales office, etc. could do more than limited 
embezzlement on their own.

Michael D Novack