BY ACCOUNTING HUB

As the name implies, the general ledger is a key accounting document that provides a general overview of all of a company’s Business transactions. However, the general ledger is such a central document that any small business owner can benefit from understanding its form and function.

At AH, we strive to keep our clients well informed about their accounting and bookkeeping functions. For a small business owner, understanding how general ledger accounting works can be very helpful.

A general ledger contains accounts encompassing the assets and liabilities that make up a business’s activities. Typically, the accounts of the general ledger are represented by five categories within a chart of accounts which are: 

• Assets (Cash & Bank, accounts receivable, inventory, investments, and fixed assets)
• Liabilities (accounts payable, notes payable, and accrued expenses)
• Owner’s equity (Capital, Retained Earning and General Reserves)
• Revenue (Sales and Other Income)
• Expenses (Cost of Sales, General and Administration, Selling and Marketing etc.)
  

A general ledger report shows all of the general ledger activity within a particular date range. A business might refer to a general ledger report from a certain month or quarter to assess the overall picture of the company’s financial standing. In addition, reports derived from the general ledger can be used to identify any potential errors in bookkeeping or to guard against fraud.

AH Accounting has specialists with the necessary expertise and experience to provide top-notch general ledger accounting services tailored to client business needs and will ensure that your general ledger accounts are always up to date. Additionally, AH Accounting will analyze the data and prepare professional reports with comments and recommendations of any issues requiring immediate actions as well as all situations that should be addressed in the near term.

Contact AH Accounting today to learn more about how their professional general ledger accounting services will help you build your business along a true path to success and use of the general ledger to offering advice on accounting software, we aim to give all of our clients the highly specific attention they require.