What Is a General Ledger and Why It Matters
A general ledger is the central repository of a company’s financial records. It tracks every financial transaction and includes a complete list of all the organization’s accounts, both debits and credits. Within the ledger, some accounts function as control accounts, which provide a summarized view of more detailed entries maintained in subsidiary ledgers.
Understanding the Role of the General Ledger
The general ledger (GL) plays a key role in the accounting process by organizing and storing essential financial data. It serves as the foundation for generating important financial documents such as the balance sheet and income statement. This ledger includes details related to:
- Assets
- Liabilities
- Equity
- Revenue
- Expenses
Every transaction recorded, whether it’s a sale, expense, or loan, is documented with corresponding debits and credits, ensuring the business maintains accurate and balanced books.
Solutions like Beyond help businesses automatically record transactions into the general ledger, simplifying reconciliations and making it easier to stay compliant and audit-ready.