What is a General Ledger?

What is a General Ledger?

All financial transactions occurring in the day to day operations of a business are tracked by the business’ accounting department and recorded to provide the business owners an accurate assessment of the financial performance of the company. Transactions are recorded by the company in books called journals that are summarized on a monthly basis, and then the totals are posted to the company’s General Ledger. A General Ledger is a mandatory component of any business’ accounting system as it is a historical record summarizing all of the financial balances of a business.