General Ledger

A general ledger is a comprehensive record of all financial transactions made by an organization. It acts as the central repository for accounting data, capturing details for every account, such as assets, liabilities, income, and expenses. Each transaction is recorded as a debit and a credit in the respective accounts, ensuring the accounting equation stays balanced. The general ledger is organized by account codes and dates, making it possible to track financial activity over time and produce key financial statements such as the balance sheet and income statement. In nonprofit organizations, the general ledger is crucial for tracking donations, grants, and program expenses to ensure transparency and compliance with regulations.