General ledger

What is general ledger?

The general ledger is the master record of every financial transaction a company makes, organized by account, cash, revenue, payroll, and so on. It's the single source of truth that feeds your trial balance and financial statements. Every journal entry ultimately lands here, making the GL the backbone of your books.

Why it matters for fast-growing companies

The GL is where messy books get exposed or cleaned up, miscategorized expenses, duplicate entries, and unreconciled balances all live here. A well-structured general ledger built on a solid chart of accounts is what lets you close the month fast and hand auditors or investors numbers they can trust.

Related terms

• Accounting & closeChart of accountsA chart of accounts (CoA) is the structured list of every account a company uses to record transactions, organized into assets, liabilities, equity, revenue, and expenses.
• Accounting & closeJournal entryA journal entry is the record of a single business transaction, listing the accounts affected and the debits and credits that keep them balanced.
• Accounting & closeTrial balanceA trial balance is a report that lists every account in the general ledger with its ending debit or credit balance, then totals each column.
• Accounting & closeMonthly closeThe monthly close is the process of reconciling accounts, booking accruals, and finalizing financial statements for the prior month.

Frequently asked questions