The general ledger is the master record containing every financial transaction of a business, organised by account, from which the financial statements are produced.
The general ledger (GL) is where all the individual journal entries land, sorted into the accounts defined in your chart of accounts. Every debit and credit ultimately posts to the GL, and the balances of those accounts are what roll up into the trial balance and then the financial statements.
The GL is the authoritative source of truth for the business's numbers. When the CRA reviews a return, or an accountant prepares statements, the general ledger and its supporting documents are what they examine. Keeping it accurate and reconciled is the heart of good bookkeeping.
Every sale, expense and payment for the month posts to the general ledger. At month-end the bookkeeper reconciles the GL cash account to the bank statement to confirm nothing is missing or duplicated.
Our certified accounting firm handles this for businesses and individuals across Canada, at fixed fees with no surprises.
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