A general ledger is a book containing all the accounts for recording transactions relating to a company’s assets, liabilities, owners’ equity, revenue, and expenses. In modern accounting software or ERP, the general ledger works as a central repository for accounting data transferred from all sub-ledgers or modules like accounts payable, accounts receivable, cash management, fixed assets, purchasing, and projects.
What makes the General Ledger (GL) so unique?
This is the masterpiece for the accountant.
This is the place where all the transactions for a specified period are recorded, in detail.
In other words, the GL is the report from where all the other financial statements, such as Income Statement and Balance Sheet take life.
Therefore, any good accountant has to be able to read and review the GL on a monthly basis and verify that all the transactions included in it are correct.
