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Patriot Software's New Patent for Dual-Ledger Accounting Feature

Cathy Roth
Posted by Cathy Roth on Mar 11, 2022 1:58:46 PM

Patriot Software, LLC has received a patent for its Dual-Ledger Accounting feature, giving users the ability to track transactions in cash, modified cash, and accrual basis simultaneously in their highly-rated accounting software. With Patriot's Dual-Ledger Accounting, the software—at the time of entry—automatically writes accounting transactions in each accounting method, avoiding the need to do conversions to transition between accounting systems.

In other words, Patriot’s invention allows those accounting systems to be compared and co-exist rather than translated from one system through another. The novelty and expression of this idea are revolutionary.

What sets Patriot’s Dual-Ledger Accounting feature apart from other software systems is its ability to eliminate the need for conversions (and adjusting entries) when switching between accounting methods. Patriot’s team chose to devote a year to planning and developing this code to make its accounting software powerful enough for accountants and easy enough for small business owners.

The simultaneous tracking gives business owners the accounting view they want and their accountants the view they need. Although the feature originally went live in January 2017, the patenting process took years with the United States Patent and Trademark Office issuing the groundbreaking patent in December 2021.

The concept was turned into reality by Patriot's team led by Asher McCune, Senior Solutions Architect. McCune said, "Previous patents have outlined how to programmatically convert from one accounting method to the other. But, that takes additional processing and may make it hard to switch back. Our approach takes the processing hit upfront. After that, switching accounting methods is just a viewing preference and there's no need for either manual or computational adjusting entries."

As you know, cash basis is the simplest accounting method, which many small business owners are comfortable with and understand. Accrual accounting is generally the preferred method of accountants and involves more complex accounts. The modified cash basis allows users to have the flexibility of entering money in and money out, with certain liability accounts to better manage their cash flow.

Users can easily view reports in each accounting method by easily toggling, but the software saves each user’s preference for their convenience. For example, an accounting professional may have their preferences saved to accrual-basis accounting, while their client might have their preferences saved to the modified cash basis. In addition to the convenience of switching between accounting methods to accommodate varying users (e.g., business owner and accountant), business owners can also use the Dual-Ledger Accounting feature to report their finances based on what they are reporting to the IRS.

Both Patriot retail customers and Accountant Partners can take advantage of the feature. This allows business owners to meet their needs and have the flexibility of managing their money more easily.

Learn more about Patriot's accounting software here

Topics: Cloud Accounting


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