What is a general ledger?

A general ledger is the complete record of a business's financial transactions, organized by account. It serves as the central system of record for financial data and provides the foundation for financial statements, reporting, reconciliation, and analysis.

Example: When a business records a customer payment, the transaction is posted to the appropriate accounts in the general ledger.

Related terms: Chart of Accounts, Journal Entry, Trial Balance, Agentic General Ledger™