General Ledger
The master accounting record that contains all financial transactions for an organization, organized by account.
Key Details
- The general ledger (GL) is the foundation of double-entry bookkeeping, recording debits and credits for every transaction.
- It organizes transactions by chart of accounts, including assets, liabilities, equity, revenue, and expenses.
- Sub-ledgers (accounts receivable, accounts payable, inventory) feed summarized entries into the GL.
- Maintaining an accurate GL is essential for financial reporting, audits, and regulatory compliance.