What is a subledger?

A subledger, also known as a subsidiary ledger, is a detailed supplemental accounting record that provides additional information about specific accounts in the general ledger. It is used to track specific transactions or balances related to a particular category or type of transaction, such as accounts receivable, accounts payable, inventory, or fixed assets.

Subledgers are typically used to maintain detailed records for each individual transaction or account within a specific category. This allows for greater accuracy and detail in tracking transactions and balances, as well as providing a clear audit trail for each individual transaction.

Subledgers are generally reconciled with the corresponding general ledger accounts to ensure that the information is accurate and consistent across all financial records. This helps to improve the overall accuracy and reliability of financial reporting.

Overall, subledgers help to streamline the accounting process by organizing and categorizing specific transactions and balances, providing detailed information for specific accounts, and facilitating accurate financial reporting.