Dictionary of all accounting terms
General ledger is a financial record-keeping system of a company that is validated by a trial balance. The general ledger contains all the financial transactions which take place throughout the lifetime of a company.
The company's general ledger contains account information which will later be used to create financial statements. The data associated with various transactions is segregated into categories - assets, liabilities, owner's equity, revenues, and expenses.
General Ledger and the Big Picture
Financial details within the general ledger can be aggregated and summarized to produce trial balance sheets, cash flow statements, and other financial reports. This allows accountants, managers, financial advisors, investors, and other stakeholders to better assess the financial health of your organization.