General Ledger
A general ledger is a core accounting concept that serves as a master record of all financial transactions for an organization, categorized into accounts like assets, liabilities, equity, revenue, and expenses. It provides a complete and organized summary of financial data, enabling accurate financial reporting and analysis. In software development, it often refers to the underlying data structure or module in financial applications that tracks and manages these transactions.
Developers should learn about general ledgers when building or maintaining financial software, accounting systems, ERP platforms, or any application involving transaction tracking and financial data management. It's essential for ensuring compliance with accounting standards (e.g., GAAP, IFRS), generating financial statements like balance sheets and income statements, and supporting auditing processes. Understanding this concept helps in designing robust data models and implementing features like double-entry bookkeeping.