The general ledger is a comprehensive record of a company's financial transactions categorized into accounts such as assets, liabilities, revenues, and expenses.
It serves as the foundation for financial reporting and helps businesses track their financial health over time.
For instance, all sales revenue would be recorded under revenue accounts while expenses like rent or utilities would be categorized under expense accounts.
The general ledger is crucial for preparing financial statements, conducting audits, and ensuring compliance with accounting standards.
