A general ledger is the foundation of a non-profit organization’s record keeping system. It serves as the main source of information for preparing financial reports and monitoring financial performance. The general ledger includes transactions involving assets, liabilities, revenues, expenses, and capital. These transactions are grouped into various categories—such as donations, grants, salaries, office supplies, and travel—to help the non-profit track revenue sources and spending patterns. Every transaction must be recorded in the appropriate general ledger account, so it can be tracked and reviewed at any time. By maintaining an accurate and up-to-date general ledger, non-profits can ensure transparency and sound financial management practices.