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Financial analysis spans a variety of accounting applications, including the general ledger, as well as detailed subledgers for purchasing and accounts payable, invoicing and accounts receivable, and fixed assets. Because we've already touched upon purchase orders and invoices earlier in this book, we'll focus on the general ledger in this chapter. Given the need for accurate handling of a company's financial records, general ledgers were one of the first applications to be computerized decades ago. Perhaps some of you are still running your business on a 20-year-old ledger system. In this chapter, we'll discuss the data collected by the general ledger, both in terms of journal entry transactions and snapshots at the close of an accounting period. We'll also talk about the budgeting process.
Chapter 7 discusses the following concepts:
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