General ledger accumulates transactions from accounts payables, accounts receivables, payroll, equipment, and work order as they are entered into the construction accounting software system. When transactions are processed, this activity enters the general ledger providing you with the full picture of your financial wellbeing. Having a general ledger is important because it provides an organized and accurate record of all financial transactions, it makes filing tax returns easy because you have your expenses and income categorized in one place, it provides real time data and reports on revenue and expenses so that you can stay on top of spending, it helps you spot unusual transactions immediately which helps prevent and stop fraud, it aids in compiling key financial statements which are crucial for evaluating your profitability, liquidity, and overall financial health, and it helps you keep track of your work-in-progress for jobs and work orders.