The General Ledger (GL) serves as the main accounting record of a company, encompassing all balance sheet and income statement accounts. It is the fundamental system through which all financial transactions of a business are identified, recorded, and collated to produce financial statements.

The GL is organized by accounts, with each transaction posted to the relevant account using a double-entry system—credits and debits ensure all entries are balanced. For instance, if a company spends $1,000 on supplies, this would be recorded as a debit to the Supplies Expense account and a credit to the Cash account.

Managers and accountants regularly review the GL to assess financial performance and maintain accuracy in financial reporting. By doing so, they ensure compliance with accounting standards and gain insights into the company's financial health and operational efficiency.