There’s no shortage of articles on this topic, and for good reason. Integrating the General Ledger (G/L) with a financial accounting system is a challenge that small, mid-sized, and large enterprises alike often face. Since the General Ledger is one of the most important financial documents in any business, ensuring it works seamlessly with your financial software is critical. If the two systems don’t communicate properly, your accounting team will face unnecessary delays and complications.

Below, we outline the most common obstacles organizations face when integrating the G/L with a financial accounting system - and how to avoid them.

Data import and export problems

Since the General Ledger includes all key financial data, your accounting system must be capable of handling various file formats and data sources.

Your G/L includes a wide range of entries, calculations, and variables that need to be summarized, interpreted, and reused later. Not all accounting software can accept or process different formats - Excel, XML, or direct inputs from ERP systems, for example. This can cause integration failures or long implementation times.

Exporting data can be just as problematic. Some systems are not equipped to convert data or generate reports that are usable for presentations or audits. If your software can’t handle flexible data import and export, your accounting processes will be severely limited.

To avoid these issues, choose a financial accounting system that supports multiple formats and data types by default.

Restrictions from your accounting software

This issue is especially common for non-profit organizations or businesses using specialized CRMs. Some systems lack essential subledgers or data fields that are critical for G/L integration. Without these features, your accounting team might need to manually duplicate data, increasing the risk of human error and inefficiency.

If your software restricts which data can be imported or processed, it becomes very difficult to integrate the general ledger effectively. A good accounting system should be able to interpret and translate data from other platforms without manual intervention.

Systems that cannot communicate

Financial data changes often — sometimes at the very last minute. If your G/L and accounting system cannot communicate in real time, inaccuracies and inconsistencies can slip through unnoticed.

Let’s consider an example. Suppose your financing deal is delayed, and funds won’t arrive until next quarter. However, the IT department doesn’t know this and proceeds with a purchase order for 50 laptops. Without real-time updates, the procurement manager may approve the expense, unaware of the cash flow issue. This could lead to budget overruns, order cancellations, and additional manual work for the accounting team.

This is why system communication is critical. Your software must be capable of syncing with the general ledger and flagging inconsistencies before they become costly mistakes.

Absence of centralization in the accounting system

The General Ledger is the most centralized financial document your business maintains. It includes sensitive data such as financial disclosures, payroll details, CRM links, and more. However, not all accounting systems are built to handle or consolidate this information efficiently.

An ideal financial accounting system allows accountants to generate weekly, monthly, quarterly, or yearly reports with minimal manual effort. The more advanced systems can even automate end-of-period transactions, streamlining labor-intensive processes and reducing the risk of delays.

If your chosen accounting software offers the right features, integrating it with the G/L will enable automation, provide a single source of truth, and make it easier for authorized staff to access and monitor financial processes.

Final thoughts

Integrating the General Ledger with a financial accounting system comes with specific challenges - but they can be solved. Not all systems are created equal, and every business must find software that fits its needs.

The most important features to look for include:

• Robust data import/export capabilities

• Cross-platform communication to prevent errors and overspending

• Centralized reporting tools to streamline accounting tasks

We recommend taking your time when choosing and implementing new accounting software. Look for a solution that’s compatible, reliable, and functional from day one. If possible, consult with the software provider and request onboarding support to ensure a smooth rollout.

Solutions like SOFT4Lessee, for example, are designed with general ledger integration in mind. By choosing such a system, you reduce the risk of errors, improve financial transparency, and free up valuable time for your accounting team.

Lastly, don’t overlook the importance of skilled staff. Your software must be supported by professionals who understand the system and can coordinate effectively across departments. Clear roles, seamless data exchange, and transparency are key to successful integration.