What is General Ledger (GL)?
Nexa Consultancy | Startup & Finance Glossary
The General Ledger (GL) is the master accounting document for a company. It provides a complete record of all financial transactions that have occurred during the life of the company. The GL is organized by accounts, and each account has a beginning balance, a list of all transactions for the period, and an ending balance.
For Startups: The GL is the single source of truth for a startup's financials. All other financial statements, like the Balance Sheet and Income Statement, are generated from the data in the General Ledger. Maintaining an accurate and up-to-date GL is the primary function of bookkeeping. Cloud accounting software automates the process of posting journal entries to the GL.
Example: A startup's General Ledger contains all its accounts: Cash, Accounts Receivable, Sales Revenue, Rent Expense, etc., with a detailed history of all transactions for each.