A General Ledger is a key component of accounting that serves as the main record-keeping system for a business. It contains all the financial transactions of the company, organized by accounts. Each account in the ledger tracks specific types of transactions, such as assets, liabilities, equity, revenues, and expenses. This organization helps businesses understand their financial position and performance over time. Every time a transaction occurs, it is recorded in the General Ledger, ensuring that all financial data is accurate and up-to-date. This process is essential for preparing financial statements, such as the balance sheet and income statement, which provide insights into the company's financial health and guide decision-making.