What is a ledger?
A ledger is the master record of all a business's financial transactions, organized by account — every invoice, payment, and expense in one chronological, categorized book. Modern accounting software is essentially a digital ledger with a search bar. If the tax authority ever asks, the ledger is the answer.
In practice
An auditor asks for proof of March revenue. The business exports its sales ledger: 47 invoices, $62,300, each tied to a numbered invoice.
Feed your ledger clean data
Sequential, professional invoices make bookkeeping a non-event.
Create an invoice — freeFrequently asked questions
Do I need accounting software or is a spreadsheet enough?
A spreadsheet works until roughly a few dozen transactions a month. Beyond that, software's automatic ledgers, reconciliation, and reports pay for themselves.
What's the general ledger vs. sub-ledgers?
The general ledger is the master summary; sub-ledgers (like AR and AP) hold the detail. They must agree — that's what reconciliation checks.
How long should I keep ledger records?
At least 7 years for tax purposes in the US. Digital backups in two places; paper fades and floods happen.