general ledger
Company's financial backbone
A general ledger is the master accounting record containing all financial transactions of a business, organized by account.
Every debit and credit flows through it—assets, liabilities, revenue, expenses.
The general ledger serves as the foundation for financial statements: The auditor reviewed the general ledger for discrepancies.
Often shortened to GL in accounting contexts.
Categorized ledger structure
- double-entryAccounting with paired entries
- debitSubtraction from account
- creditRecognition or payment deferral
- journal entriesRecorded personal observations
posting · trial balance · accounts payable · accounts receivable · fiscal period · accruals · adjustments · reconciliation
Formal records of transactions
- balance sheetAssets-liabilities-equity report
- income statementPeriodic profit-loss report
- cash flow statementReport of money entering, leaving
- fiscal yearAccounting calendar period
retained earnings · net income · equity · assets · liabilities · revenue · expenses · disclosures
Proving something accurate
- attestationFormal declaration confirming truth
- CPALicensed accounting professional
- assuranceFirm promise or certainty
- due diligencePre-transaction reasonable care
risk assessment · forensic accounting · opinion · external audit · internal audit · audit committee · auditor · sampling
Financial reporting conventions
- Sarbanes-OxleyCorporate governance reform law
- internal controlsOrganizational oversight procedures
- audit trailChronological record of transactions
- materialityState of being consequential
statutory requirements · financial regulations · accounting standards · restatement · filings
Integrated business management software
- SAPBusiness software giant
- OracleProphetic shrine or speaker
- QuickBooksBusiness accounting application
- accounting softwareProgram for financial records
automation · integration · data entry · batch processing · Sage
chart of accounts
Categorized ledger structure
- double-entryAccounting with paired entries
- debitSubtraction from account
- creditRecognition or payment deferral
journal entries · posting · trial balance · accounts payable · accounts receivable · fiscal period · accruals · adjustments · reconciliation · opening balance
financial statements
Formal records of transactions
- balance sheetAssets-liabilities-equity report
- income statementPeriodic profit-loss report
- cash flow statementReport of money entering, leaving
fiscal year · retained earnings · net income · equity · assets · liabilities · revenue · expenses · disclosures · notes
verification
Proving something accurate
- attestationFormal declaration confirming truth
- CPALicensed accounting professional
- assuranceFirm promise or certainty
due diligence · risk assessment · forensic accounting · opinion · external audit · internal audit · audit committee · auditor · sampling · independence
GAAP
Financial reporting conventions
- Sarbanes-OxleyCorporate governance reform law
- internal controlsOrganizational oversight procedures
- audit trailChronological record of transactions
materiality · statutory requirements · financial regulations · accounting standards · restatement · filings
ERP
Integrated business management software
- SAPBusiness software giant
- OracleProphetic shrine or speaker
- QuickBooksBusiness accounting application
accounting software · automation · integration · data entry · batch processing · Sage
- financial documentsinvoice, receipt, check, bill, deposit slip
- financebank, CFO, banks, controller, finance
- accountingbookkeeping, balance sheet, accounts payable, accounts receivable, auditing
- business accountingaccounts payable, accountant, accounts receivable, accounts, accrual
- economic vocabularytrade terms, credit terms, payment terms, net income, retained earnings
- Accounting Softwareaccounting software, QuickBooks, payroll software, Sage, SAP
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