The general ledger report: What it is and how to read it  

Does this month’s cash flow reflect your revenue performance?

Are certain expense categories starting to creep out of control?

For a quick, reliable overview of your company’s financial patterns, the general ledger report is your go-to tool. 

However, if you’re not reading it correctly—or not reading it at all—you could be missing warning signs or opportunities.  

This article explains the GL report in simple, practical terms.

Whether you’re checking for accuracy, preparing for tax time, or planning your next move, the GL report prepares you to take action. 

Here’s what we’ll cover:

What is a general ledger report?

A general ledger report is a summary or snapshot of the data stored in your company’s General Ledger (GL).

So, before we can explain the GL report, we need to explain the general ledger. 

The GL is the master record of all the financial transactions driving your business.

It organizes transactions by all the accounts your company maintains, such as cash, sales, expenses, and payroll.

Each account page shows every debit and credit entry over time.  

However, the GL itself can be lengthy, with data arranged in near-identical columns throughout.

This is because it combines all the sub-ledgers that your business maintains, such as: 

• Cash account 
• Sales account 
• Expense account 
• Liability account 
• Equity account

Although all these accounts are mapped out in the GL’s index—known as the Chart Of Accounts (COA)—it’s still hard to scan all the data with the human eye.

And especially difficult if you’re looking for patterns or totals. 

The GL report presents the information in a readable format by pulling together detailed entries for one or more accounts.

It lays out dates, descriptions, amounts, and running balances.  

You can generate GL reports for any time frame, though typically companies prepare reports on a quarterly and annual basis.

The reports are your reference documents for preparing end-of-period financial statements like the balance sheet and income statement. 

Components of a general ledger report

Let’s take a closer look at how a GL report is organized and how the details track the flow of funds.

Although it’s simpler than the full general ledger, it still captures the key facts of each transaction.

The essential elements include: 

• Account name: this appears at the top of each section and indicates which account the transactions relate to, such as “Utilities Expense” or “Accounts Receivable.” 
• Date of transaction: usually the first item in each row, this shows when the transaction took place. 
• Description: this gives a brief explanation of what the transaction was for—such as a client payment or utility bill. 
• Debit and credit columns: these show the numerical value of each transaction and whether it increased or decreased the balance. Together, they show the destination and origin of the transaction—the debit shows where value is going, and the credit shows where it came from. 
• Balance column: this shows the running total in the account after each transaction. 
• Total (optional): some reports include a total at the end of the period to show the overall debit and credit activity or the ending balance. 

How to read a general ledger report

Now that you know the key elements, you may be tempted to jump to the part of the report that most interests you.

However, if you skim or consult the document selectively you could miss patterns, errors, or inconsistencies.  

To get the full benefit of a GL report, read it as a whole.

It shows how each transaction affects account balances and helps you spot trends or anomalies. Here’s a step-by-step approach: 

1. Review the chart of accounts

Skim through the whole report to understand the structure and categories of accounts your business uses.

The chart of accounts gives you an overview of how the accounts relate to each other and their collective role in your operation. 

2. Examine transaction dates

Check that transactions are in chronological order and match the period listed in the report title. 

3. Analyze descriptions

Read the details of each transaction to understand the context and why they were necessary.

For example, make sure vendor payments are consistent with your regular expenses. 

4. Check debit and credit entries

Confirm that every transaction has both a debit and a credit component.

This maintains the accounting equation.

Make sure the origin and destination of each movement is logical.

For example, if a payment is recorded as a debit to Office Supplies, the corresponding credit should come from Cash or Accounts Payable—not from an unrelated account like Sales Revenue. 

5. Monitor account balances

Watch how each transaction changes the running balance.

This helps you spot rapid increases, unexpected drops, or irregular activity. 

6. Review reference numbers

These point to the source documents—such as invoices, receipts, or journal entries.

They help you verify that the transactions are supported by real, traceable paperwork. 

7. Check for closed accounts

If an account is marked as closed, it usually means it was temporary (like a year-end clearing account) and its balance has been transferred elsewhere.

Understanding when and why accounts close helps keep your books clean and your reporting accurate. 

Types of general ledger reports

Different people in your company use GL reports in different ways, depending on the decisions they need to make.

There are multiple report formats to choose from, each tailored to a specific audience and purpose.

These are the most common types: 

General ledger detail report

 This report provides a detailed view of every transaction within each account.

Accountants and auditors often rely on this format when reviewing the accuracy of financial records.

It helps them trace individual entries, confirm proper categorization, and investigate discrepancies.

It’s also useful during audits or when preparing tax filings, as it shows exactly how each balance was built. 

General ledger summary report

This version gives a high-level overview of account balances for a specific period, without showing every transaction.

Business owners and financial managers use it when they need a snapshot of performance.

It’s helpful for identifying overall trends, reviewing account activity at a glance, and making quick decisions about budgeting, forecasting, or resource allocation. 

Trial balance

The trial balance lists all GL accounts along with their ending debit or credit balances.

It’s used mainly by accountants and bookkeepers to verify that the books are balanced—meaning total debits equal total credits.

If the totals don’t match, it signals an error in the entries.

This report is often run before preparing formal financial statements like the income statement and balance sheet. 

Other general ledger reports

Accounting software solutions like Sage, for example, offer specialized reports for targeted use cases.

These include: 

Account variance report

Comparing account totals across periods to highlight unexpected changes or trends.

Useful for budgeting, forecasting, and internal reviews. 

General journal report

Showing all manual journal entries in one place for audit or review purposes.

Manual entries typically fall outside of standard workflows—e.g. correcting errors, reclassifying expenses, or year-end adjustments.

Used by controllers and auditors to review and validate exceptions. 

Transaction detail by status

Breaking down transactions based on their approval, posting, or reconciliation status—useful for process control or cleaning up incomplete records. 

Working trial balance

Combining the trial balance with adjustments and notes that support tax prep tasks and external audits. 

Importance of general ledger reports

While different people rely on GL reports for specific tasks, these reports have a broad impact on your company’s correct functioning.

They’re especially important for day-to-day operations and meeting legal obligations, for example.

GL reports help keep your financial data accurate, clear, and ready to stand up to scrutiny—no matter who’s reviewing it. 

Operational 

From an operational perspective, GL reports support accuracy and smart decision-making.

They ensure every transaction is recorded correctly, keeping your accounts up to date and error-free.

This accuracy means you have a correct understanding of your business’s financial position at any given time.

And when you know you can trust your numbers, you can make informed decisions.

This gives you confidence when planning your next quarter, managing cash flow, or adjusting your budget to meet growth targets. 

Legal 

GL reports also play a key role in meeting legal and regulatory requirements.

They provide a complete audit trail of your business activity, which is critical during tax season or for any formal financial review.

Regulators or auditors may request GL data to confirm compliance with accounting standards.

These reports also help detect fraud by highlighting irregular entries, unusual account movements, or gaps in the transaction history—issues that could otherwise go unnoticed without a full transaction record. 

Final thoughts

A general ledger report is a powerful tool that helps you understand how your business is really doing.

A correct review of the report helps you catch errors, spot trends, and make informed decisions.  

For proper support of your daily operations and your legal responsibilities, use ledger accounting software to generate correctly sourced GL reports.

The software automatically updates the ledgers referenced in your GL report, saving time and reducing the chance of errors.