Making Sense of the General Ledger in Puzzle
At Puzzle, we're all about making accounting easier for founders and bookkeepers. One of the foundational tools we've crafted to help with that is our intuitive General Ledger (GL).
So, What Exactly Is the General Ledger?
Imagine you're running your startup, XYZ Corp, offering cutting-edge widget software. Every day, money flows in and out—sales, expenses, investments, and more. The General Ledger is like the master book where every financial transaction your company makes is recorded. It's the backbone of your accounting system, giving you a complete picture of your financial health.
But let's be real—drowning in endless rows of numbers isn't anyone's idea of fun. That's why we've designed Puzzle's GL to be as user-friendly and insightful as possible.
Why We Built an Enhanced General Ledger at Puzzle
We noticed a couple of things:
Complexity Overload: Traditional GLs can be overwhelming, especially as your business grows and transactions pile up.
Need for Clarity: Founders and bookkeepers crave a clear, organized view of financial data without getting lost in the weeds.
Our solution? A GL that's not just a data dump but a smart, organized, and customizable tool.
Why Should You Care About Puzzle's General Ledger?
Real-Time Insights: With up-to-the-minute data, you can make confident decisions without waiting for end-of-month reports.
Efficiency & Control: Filter, customize, and drill down into your accounts effortlessly, saving you time and reducing headaches.
Flexibility: Choose between cash or accrual basis accounting, depending on what suits your business best.
Diving into Puzzle's Chart of Accounts
We’ve structured our Chart of Accounts to make navigating your finances as intuitive as possible. Here's a snapshot:
10000-Series: Asset Accounts
Current Assets (10000-14999): Think cash, equivalents, investments, receivables, and prepaid assets—ordered by how quickly they can be converted to cash.
Noncurrent Assets (15000-19999): Longer-term investments like fixed assets, intangible assets, and goodwill.
20000-Series: Liability Accounts
Current Liabilities (20000-25999): Obligations due within a year—payables, short-term debt, accrued expenses.
Noncurrent Liabilities (26000-29999): Debts and obligations due beyond one year.
30000-Series: Equity Accounts
Common & Preferred Stock (30000-31999): Your company's ownership records.
Retained Earnings (34000-34999): Profits reinvested in the business.
40000-Series: Revenue Accounts
Operating Revenue (40000-49999): Income from your core business activities—subscriptions, services, transactions.
50000-Series: Cost of Revenue Accounts
Direct Costs (50000-59999): Expenses directly tied to generating revenue—materials, hosting fees, payment processor fees.
60000-Series: Operating Expense Accounts
Standard Operating Expenses (60000-69999): Payroll, travel, marketing, software—everything that keeps the lights on.
70000-Series & Beyond
Other Expenses & Income (70000-89999): Depreciation, taxes, interest—non-operational financial activities.
Uncategorized (90000-93999): Transactions that need your attention to be properly classified.
Making the General Ledger Work for You
1. Choose Your Accounting Basis
Cash Basis: Recognizes transactions when cash changes hands.
Accrual Basis: Recognizes transactions when they’re earned or incurred, regardless of cash flow.
How to Do It in Puzzle:
Simply select your preferred basis in the GL view, and Puzzle adjusts the data instantly.
2. Customize Your View
Time Frames: Look at your data over any period—daily, monthly, quarterly, yearly.
Filters: Toggle options like:
Sub-accounts with transactions only: Focus on active accounts.
Exclude net zero impact entries: Hide transactions that cancel each other out.
Exclude inactive accounts: Keep your view clutter-free.
3. Deep Dive into Accounts
Click on any account to see the nitty-gritty details:
Debits and Credits: See how each transaction affects your accounts.
Account Numbers & Events: Track where everything is coming from and going.
Descriptions & Memos: Read any notes you've added for context.
4. Export Your Data
Need to share with your accountant or analyze further? Click "Export" to download your GL in a handy format.
The Bottom Line
Puzzle's General Ledger isn't just an accounting necessity—it's a strategic tool designed to give you clarity and control over your financial world. By making the GL intuitive and customizable, we help keep your financial management less about sifting through endless data and more about making informed decisions.