Every accounting entry made in your business — from a sales invoice to a bank payment to a depreciation journal — ultimately sits in the general ledger. Financial statements, VAT returns, and corporate tax filings are all derived from it. An error in the general ledger propagates into every downstream report. In an FTA audit, the auditor will typically request access to the general ledger and trace selected transactions through to source documents. A clean, well-structured ledger is your first line of defence.
See also: Chart of Accounts (COA), Bookkeeping, Audit Trail
