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Accounting Terms
General Ledger
Definition
The master accounting record containing all financial transactions of a business.
Overview
The general ledger is the central repository of all accounting data. Every transaction is recorded here, organized by accounts (assets, liabilities, revenue, expenses).
Example
A payment from a client is recorded in the general ledger as a debit to cash and credit to accounts receivable.
Best Practices
Maintain accurate records, reconcile regularly, and use accounting software for automation.
Common Mistakes to Avoid
Inaccurate entries
Not reconciling
Poor account structure
Frequently Asked Questions
Do I need a general ledger for a small business?
Yes—it's fundamental to proper accounting. Software handles this automatically.