A ledger serves as a detailed account of a company’s financial transactions, organized in a systematic manner for easy reference and analysis. It acts as a primary source document for recording all debits and credits, providing a clear picture of the financial health of a business.

A well-maintained ledger helps track expenses, monitor cash flow, and identify any discrepancies or errors in financial records. It enables businesses to make informed decisions based on accurate financial data and ensures compliance with regulatory requirements.

Additionally, a ledger plays a crucial role in budgeting, forecasting, and financial reporting. It provides a historical record of financial transactions, which is essential for evaluating the performance and profitability of a business over time.

In conclusion, a ledger is an indispensable tool for effective financial management, serving as the foundation for accurate record-keeping and decision-making in business operations.#25#