Ledger as a Service (LaaS)

A system that tracks and records all financial activity across accounts.

It consists of two parts: the General Ledger, which captures all transactions flowing through the main account, and the Sub-Ledger, which breaks down the details of individual sub-accounts and their specific transactions. Think of it as a comprehensive financial record-keeping system that shows both the big picture and the individual account details.

Understanding Ledger as a Service

Ledger as a service provides the accounting infrastructure businesses need without building it themselves.

The two-tier structure:

• General Ledger - The master record showing all money in and out of the main escrow account
• Sub-Ledger - Detailed records for each individual client, transaction, or project account

The offer: you get complete financial transparency at both the macro and micro level, with automatic reconciliation between the two.

How Ledger as a Service Works

The system maintains parallel but connected records:

General Ledger Level

Tracks the escrow company's master account activity:

• Total deposits received today: $487,500
• Total disbursements made today: $312,000
• Current total balance: $8,450,000
• Outstanding liabilities: $8,450,000 (equal to balance, as it should be)

Sub-Ledger Level

Tracks each individual client or transaction account:

• Client #1247: Balance $12,500 (received deposits of $500/month for 25 months)
• Client #2891: Balance $8,200 (received deposits of $650/month for 12 months, made one $600 disbursement)
• Transaction #5829: Balance $450,000 (received $450K earnest money, awaiting closing)

The reconciliation: The sum of all sub-ledger balances must exactly equal the general ledger balance. If it doesn't, the system flags a discrepancy immediately.

Key Benefits

Financial Accuracy: Automatic reconciliation catches discrepancies immediately and eliminates manual spreadsheet errors

Operational Transparency: Complete visibility into every account and transaction create clear audit trails for regulatory compliance

Scalability: Allows support of complex multi-party distributions and manage multiple business lines in one system

Regulatory Compliance: Meet state and federal financial reporting requirements