A ledger is a book or digital record used to track financial transactions. It organizes data into accounts, showing debits and credits for each transaction. Ledgers are essential for businesses to maintain accurate financial records and ensure transparency. In modern finance, many companies use digital ledgers, often referred to as blockchain technology. This decentralized system enhances security and allows multiple parties to access the same information simultaneously. By using a ledger, organizations can easily monitor their financial health and comply with regulations.