A general ledger template is an account or record used to sort and store balance sheet and income statement transactions. Generally, it is the main accounting record of a company or organization. It will contain accounts of different financial terms, like current assets, fixed assets, liabilities, revenues, expenses, profits as well as losses. A general ledger will be drafted in the proper format, having a business name, a general ledger and its period on the top of the page. Every payment or receipt will be first entered in the general ledger, then used to make other financial statements. In terms of business, a general ledger may be defined as a collection of all the financial accounts of a company which are special in type and effective for the accounting procedures of an entity.
Importance of General Ledger
Basically, we can call a general ledger a financial report that is generated by the company to provide in-depth details about the values of different accounts with the description of whole transactions. However, this report will be used to make up the balance sheet of particular accounts. This is an official document of business which afterward used to create the income statement of entity as well. In like manner, the vital purpose of this general ledger is to run the financial operation of a business. In addition, a general ledger may also have a role in the accounting of companies for budget preparation.
Advantages of a General Ledger
A general ledger has various advantages for your company, such as, you will be able to know the changes in your account through this. It gives you an accurate record of all financial transactions. It gives you your credit and debit balance. You are able to make a trial balance with the help of a general ledger. It helps you in identifying any unusual transaction that has been made. You are able to identify and stop any fraud with the help of a general ledger. Your tax payments are made easy with the help of it as expenses and incomes are in one place.
Details of General Ledger
To all appearance, a general ledger may hold a bit of information collected by research, review of financial statements, and audit of accounts. This will act as the ultimate bookkeeping account for all the transactions undertaken by a business or entity for a specified period of time. Nonetheless, this general ledger may have access to properly record the information of credits and debits for all of the various accounts. Seemingly, this general ledger template must cover the bills, invoices, shipping orders, and other records of the diverse business dealings signed within a certain time frame.
Template For General Ledger
