A ledger is a primary bookkeeping tool that records all financial transactions of a business. It serves as the foundation of accounting, providing a detailed account of income, expenses, assets, and liabilities. Each transaction is recorded in the ledger using a double-entry system, which ensures that all transactions are accurately reflected.

By maintaining a ledger, businesses can easily track their financial health and make informed decisions. It helps in identifying any discrepancies or errors in financial records, enabling businesses to rectify them promptly. Additionally, a ledger provides valuable insights into a business’s financial performance, helping in budgeting, forecasting, and strategic planning.

In conclusion, a ledger is an essential aspect of financial management that businesses cannot overlook. It serves as a roadmap to a company’s financial position and performance, making it a valuable tool for ensuring financial stability and growth.#25#