Back to the basics: General Ledgers
To a seasoned professional in the business industry, many concepts seem very simple. However, things like general ledgers and accounting can seem daunting to a new business owner. Chief Financial Officer of Circle City Broadcasting, Ty Shea, shared some words of wisdom, as he went back to the basics.
The general ledger is the foundation of balancing all of your credits and debits. It records all business transactions through day-to-day operations. Since a general ledger is a running history of your business, it’s crucial to have a good chart of your accounts.
Keeping a tidy ledger can help business owners track a lot of important information. It allows for you to identify revenue streams, map out business goals, and have direct access to assets, liabilities, and so much more!
General Ledgers are also an asset to your business decision makers. They can use this ledger for insight when it comes to strategic planning for business operations in the future!
The best thing about a general ledger, it can be catered to you and your business. If expenses versus revenues are your primary focus, you can create a ledger to reflect that. Do you need to number your assets or follow your equity accounts? Your ledger can reflect that as well!
General Ledgers are just the beginning of Ty Shea’s dive into accounting and bookkeeping basics! To learn more, visit the BE&O page here! Also, be sure to come back for more basic breakdowns with Ty in the future.