Answers · Bookkeeping
What Is a General Ledger?
The general ledger is the transaction-level detail supporting each account in the financial statements.
How it works
The rule, and what it turns on.
It lets a reviewer trace a reported balance back to dates, vendors, descriptions and journal entries.
Example
A $150,000 equipment balance can be traced to purchase entries and then to invoices.
Common mistakes
What we see go wrong, and what we do instead.
- Relying only on summary reports.
- Posting unsupported large journal entries.
A better approach
- Use memo fields and attachments to preserve audit trail.
Authority
Where this comes from, so you can check it.
IRC §6001; Treas. Reg. §1.6001-1; IRS Publication 583; IRS Small Business Recordkeeping guidance.
Educational information, not individualized tax advice. Treatment depends on your facts, entity classification and tax year, and IRS instructions change. Confirm your own position with us before relying on it. Mint Associates does not provide legal services.
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