General Ledger (GL)
Definition
The master record of all financial transactions for a business, organized by account. Every entry in the GL follows double-entry bookkeeping. HelloBooks maintains your GL automatically from invoices, bills, payments, and journal entries.
Related Terms in Core Accounting
Gross Profit
Revenue minus cost of goods sold (COGS). Represents the profit before operating expenses, taxes, and interest. Gross profit margin (gross profit / revenue) indicates pricing efficiency.
Journal Entry
A record of a financial transaction in the general ledger, showing debits and credits. Manual journal entries handle adjustments, corrections, and non-standard transactions that don't originate from invoices or bills.
Net Profit
The bottom line — revenue minus all expenses including COGS, operating costs, interest, and taxes. Also called net income. The P&L statement's final figure.
Profit & Loss Statement (P&L)
Also called an income statement. Shows revenue, expenses, and profit or loss over a period. Essential for understanding business performance. HelloBooks generates P&L reports automatically with AI-powered insights.
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