- Published: Friday, 27 January 2012 17:53
Out of all of our financial data in our financial records, nothing is more important than our financial statements. Our financial statements give us the information we need to make purchase decisions, for budgeting purposes, to see our cash balance in our business, as well as to generally see how our business is doing in an overall sense. However, one other important aspect of one of our financial statements, our general ledger, serves an even greater purpose. The general ledger serves as an audit trail for specifically keeping past records, as well as when or if the IRS decides to audit your records. Keeping copies of your general ledger will help you in case your computer crashes, and you lose your financial data on your computer, and will assist in proof of records in case you are audited. What better way to manage your business records than to be prepared in this way.