Ledger Setup
Part of Choosing accounting software for an Australian business
Defining accounting workflows before comparing products
Map each accounting event, source record, approval, financial result and exception before comparing software demonstrations.
Map each accounting workflow from a business event to a checked financial record. For each path, note its trigger, source evidence, who acts and approves, which accounts and reports should change, and what happens when something goes wrong. The result is a brief suppliers can use to show your process.
Start with work that occurs
Choose frequent or consequential events: issuing an invoice, receiving a supplier bill, paying an employee, importing bank activity and closing a reporting period. Include sales or stock systems that supply accounting data. Ask the people doing the work where they wait for information, enter it again or correct it.
Field / Question to answer
- Trigger
- What starts the work, and when?
- Source
- Which invoice, bill, order, bank item or report supports it?
- Owner
- Who enters or imports it, and who checks it?
- Decision
- What needs approval or an accounting judgement?
- Result
- Which accounts and reports should change?
- Exception
- Who investigates a missing, disputed or duplicate item?
Describe the business event before describing software screens. “Click Reconcile” does not say whether a bank transaction should match an invoice already recorded or create a new entry.
Common Accounting Events to Map in Your Workflow
- Issuing an Invoice
- Frequent; triggers revenue recognition
- Receiving a Supplier Bill
- Critical for expense tracking and GST claims
- Paying an Employee
- Requires PAYG withholding and superannuation
- Importing Bank Activity
- Essential for reconciliation and cash flow
- Closing a Reporting Period
- Required for BAS, tax returns, and financial statements
State the result and review point
For a supplier bill, record where it arrives, who checks its business purpose, who approves it, who confirms the account and applicable GST treatment, and how its payment is matched. Specify what happens if the amount changes after approval or a bank item appears before the bill is entered. Distinguish a bill awaiting approval from one approved but unpaid.
For sales, distinguish an issued invoice from a receipt of cash. If a point-of-sale or ecommerce system creates the sale, decide whether accounting receives individual transactions or an approved summary. Keep the source reference and a way to reconcile refunds, fees and bank deposits. Ask your accountant or BAS adviser to confirm the treatment that applies to your transactions.
Turn the map into comparison questions
Mark each requirement essential, workaround acceptable or optional, and ask every supplier these questions. Can the proposed plan and user role complete the step? Can a reviewer find the source and understand a correction? What happens after rejection, a duplicate import or a change to an earlier period, and what information can be exported?
Keep an owner beside every exception. Once the team agrees on the ordinary and exception paths, use representative transactions to assess the product. Keep the workflow brief for setup, training and later changes.
Software Evaluation Questions Based on Workflow Mapping
- Can the user role complete the step?
- Yes/No – assess role-based access and functionality
- Can a reviewer find the source and understand corrections?
- Yes/No – evaluate traceability and audit trail
- What happens after rejection?
- Workflow continues with notification and tracking
- How are duplicates handled?
- Automated detection or manual review process
- Change to an earlier period?
- Audit trail and adjustment workflow in place?
- Exportable information available?
- Yes – for reporting, ATO submissions, or audits