general ledger (GL)

A general ledger (GL) is a record of accounting information that a business uses to build financial reports.

A general ledger (GL) is a chronological accounting record a business uses to keep track of financial transactions. Transactions are categorized and summarized into general ledger accounts. An account is a unique record for each type of asset, liability, equity, revenue and expense. The number and type of accounts that make up the general ledger is determined by the chart of accounts (COA).

The general ledger is the primary component of most financial accounting software applications, including accounts payable software, accounts receivable software and enterprise asset management (EAM) software. The GL can be thought of as an electronic database that provides the data required to build financial reports. The general ledger is at the core of any enterprise resource planning (ERP) financial management system, which encompasses the functions that are required to maintain one or more sets of books, generate financial reports, manage cash and fixed assets and execute payment and accounts receivable transactions.

Many financial accounting software vendors now offer cloud-based options, which are becoming more popular for general ledger and other accounting functions. The cloud can make accounting processes more efficient by providing users with anywhere, anytime access to financial information.

This was first published in April 2015

Continue Reading About general ledger (GL)

Glossary

'general ledger (GL)' is part of the:

View All Definitions

Dig Deeper on General Ledger, Accounts Receivable and Accounts Payable Software

Pro+

Features

Enjoy the benefits of Pro+ membership, learn more and join.

Related Discussions

Margaret Rouse asks:

What kind of general ledger software does your company use?

0  Responses So Far

Join the Discussion

0 comments

Oldest 

Forgot Password?

No problem! Submit your e-mail address below. We'll send you an email containing your password.

Your password has been sent to:

-ADS BY GOOGLE

File Extensions and File Formats

Powered by:

SearchManufacturingERP

SearchSAP

SearchOracle

SearchBusinessAnalytics

SearchContentManagement

SearchDataManagement

SearchCRM

Close