A ledger is essentially a record-keeping tool that tracks all financial transactions in a systematic manner. It categorizes expenses and income, making it easier for businesses to monitor their financial health. By using a ledger, businesses can easily calculate their profit or loss, track outstanding balances, and create balance sheets.

One of the key advantages of using a ledger is its ability to provide a clear overview of a company’s financial status. By maintaining accurate records of financial transactions, businesses can identify trends, spot potential issues, and make informed decisions about their financial strategy.

In conclusion, a ledger is a fundamental tool in financial management that businesses cannot afford to overlook. By utilizing a ledger effectively, businesses can maintain accurate records, track their financial progress, and make informed decisions to ensure long-term financial stability.#25#