What is a general ledger, why am I being asked for it, and how does it help me?
What: A general ledger or (GL) is a document of all the transactions for a specific period of time, it is usually for a full year or Year-To-Date. It is broken into the different accounts depending on whether you want it reported by bank account separations, categorical account separations, or both.
Why: Your accountant may be asking for it to make sure that your transactions are all recorded correctly - or you may be being audited and need to show proof of your transactions.
How: By providing this to you, you can make sure that transactions are recorded correctly in the system. This is especially useful when a transaction to a contact is maybe 50-90% for one type of expense (such as client meals) but the rest of them should be categorized differently.
We send this so you can notify us of any adjustments in the comment column! The main focus points are going to be as follows:
Rent: ensure all 12 monthly payments are present
Owner's Draws: in case they are actually business expenses
Office Supplies or Refreshments: In case they are actually marketing or employee relations (gift cards, Amazon, Walmart, Etc)
Meals: (and entertainment) in case these are for team members only and should go to employee relations
Charitable Distributions: Are all of your donations reflected here? Are they supposed to be promotional items instead because they are technically a sponsorship?
Other professional services: in case it's professional development for example
Miscellaneous expenses: Should these be attributed to a different category? Are point redemptions included here (they should be owner contributions)?