Glossary
General Ledger
The central accounting record holding every financial transaction of a business, organised by account.
The general ledger is the system of record from which financial statements derive. Every transaction lands in it as balanced debits and credits against specific accounts.
Agencies typically run an agency management system alongside general accounting software, which means the same transaction exists in two places. Keeping commission, premium, and trust movements agreeing across both is a recurring reconciliation obligation in its own right.
See also
- Journal Entry — A single record in the general ledger, posting equal debits and credits across accounts to capture one transaction.
- Bank Reconciliation — Matching an account's ledger balance to its bank statement, explaining every difference between the two.
- Agency Management System — The core software an insurance agency runs on, holding clients, policies, documents, activities, and often accounting.