The General Ledger (GL) serves as the central hub for a company's financial records, tracking every transaction that impacts the organization's financial position. This comprehensive ledger is the source of truth for generating critical financial statements, including:
- Income Statement
- Balance Sheet
By consolidating various financial accounts and transactions, the GL provides a unified view of:
- Accounts Receivable
- Accounts Payable
- Fixed Assets
- Inventory
The General Ledger: A Comprehensive Financial Record
The General Ledger is the primary accounting record for businesses, capturing all financial transactions in a single, centralized system. This ledger enables the preparation of essential financial statements, including the Income Statement and Balance Sheet.
Key components of the General Ledger include:
- Accounts Receivable and Payable management
- Fixed Asset tracking
- Inventory management
- Revenue and Expense tracking
Simplified:
What is a General Ledger?
A General Ledger (GL) is a company's primary financial record, tracking all transactions. It:
- Generates financial statements (Income Statement, Balance Sheet)
- Summarizes financial accounts (Accounts Receivable, Payable, Fixed Assets, Inventory)
