The book ledger is an accounting tool that records the details of transactions for reporting, analysis and tracking purposes. Put simply, it help businesses to keep accurate financial records by providing a comprehensive overview of all business transactions. Every time a customer makes a purchase or pays an invoice, that bookkeeping transaction will be recorded in the corresponding book ledger. This forms the basis for preparing profit-and-loss statements, managing cash flow and ensuring that taxes are paid accurately and on time. The term “book ledger” comes from the practice of keeping physical books of account written with a pen and paper – but today, the majority of book ledger entries are now managed digitally via sophisticated software tools.