General Ledger

What is the General Ledger?

The General Ledger is a comprehensive record of a company's financial transactions over the life of its operation. This ledger includes all the transactional data necessary for the preparation of financial statements, such as the balance sheet, income statement, and cash flow statement. It acts as the central source of accounting data used to generate accurate financial insights.

Short Description: The central repository for a company’s financial data, which summarizes all transactions and serves as the basis for the creation of financial statements.

• Accounts: Includes multiple accounts like revenue, expenses, assets, liabilities, and equity that categorize transactions.
• Balance: Reflects the balance of each account, which is maintained and constantly updated based on ongoing business transactions.
• Financial Integrity: Ensures that all financial transactions are accurately recorded and viable for auditing.

The General Ledger is pivotal for summarizing the financial health and activity of a business, supporting both internal management and external reporting requirements.