A ledger is a book or a computer program where financial transactions are recorded and categorized. It serves as a central hub for all financial information, providing a clear and organized summary of an organization’s financial activities.

One of the key roles of a ledger is to help in proper accounting. By recording all income, expenses, assets, and liabilities in one place, it allows for easy tracking of financial data. This is crucial for making informed business decisions and ensuring compliance with regulatory requirements.

Moreover, a ledger helps in maintaining accurate balances. By keeping track of every transaction, it ensures that all accounts are balanced correctly and that there are no discrepancies in the financial records.

In conclusion, a ledger is an essential tool for effective financial management. It provides a comprehensive overview of a company’s financial health and facilitates decision-making processes. By using a ledger, businesses can maintain accurate and up-to-date financial records, which are crucial for success in today’s competitive market.#25#