A general ledger account (ledger) is an accounting term that refers to a central record of all financial transactions carried out by a company. It records all debit and credit entries in a clear and structured system. Companies use these accounts to analyse and report financial position and performance. They often divide general ledger accounts into different categories, such as assets, liabilities, income and expenses, to provide a detailed understanding of financial activities.
General ledger vs general ledger chart of accounts
Good ledgers provide an accurate record of financial transactions, which is crucial for effective reporting and decision-making within an organisation. They form the backbone of financial records and provide insight into a company’s financial position and performance. A good general ledger chart promotes consistency and efficiency in accounting by uniformly categorising transactions
Standardisation in ledgers
A good general ledger accounting schema the exchange of financial information between different systems and organisations. The Reference General Ledger Scheme (RGS) is a standardised general ledger accounting scheme developed in the Netherlands. It provides a uniform set of accounts and codes for different financial transactions. Benefits of using RGS include standardised reporting, simplified data exchange between systems and organisations, increased efficiency in accounting, and improved consistency and accuracy in financial analyses.
General ledger account recognition in TriFact365
TriFact365 adopts the default general ledger accounts of suppliers and customers when using the general ledger accounting schema of the linked accounting package. Through automatic line recognition, TriFact365 identifies individual posting lines on an invoice. It then suggests general ledgers based on historical data. For more information on automatic line recognition, click here.