What is ledger meaning?

A ledger is a book or a record that contains all the financial transactions of a business or an individual. It is a part of the double-entry accounting system and tracks the flow of funds into and out of an account. The ledger is used to prepare financial statements such as balance sheets and income statements and to determine the financial health and performance of an organization. It can be physical or digital and is generally sorted by account type, such as accounts payable, accounts receivable, cash, inventory, and so on. The ledger is a crucial tool in finance and accounting, and its accuracy is vital in making sound financial decisions.