Why it matters
The general ledger is the detail behind the trial balance. When a number on a financial statement looks wrong, the general ledger is where the bookkeeper finds the transactions that made it.
Example
The owner asks why the software expense doubled in March. The bookkeeper opens the general ledger for that account and finds an annual subscription charged in one month instead of being spread over the year.
Related terms
Questions about General ledger
How is the general ledger different from a trial balance?
The general ledger shows every transaction in each account. The trial balance is a summary of the ending balance in each account at a point in time.