The general ledger is built by the chart of accounts, which is basically your lineup. You will post transactions to the applicable account that builds the financial statements that in turn report your operating performance. The resulting financial statements are then used to understand your business activity.

Results reported can help you pivot, change your overall strategy, or replace one of your non-performing players. In simple terms, the general ledger is your business detail. It should be properly collated to report accurate results.

Is your team performing up to your expectations and the game going how you want it to? Without a good and accurate general ledger, it’s a difficult question to answer.

Make sure to check out part one in our series: What does your General Ledger mean?