13 February 2013
A sales ledger is an accounting tool used in business to keep track of sales made or invoices sent to customers. A sales ledger can be very simple or complex, depending on the size and the nature of the business. Sales ledgers were at one time handwritten in notebooks, with various columns, but now it is much more common to keep track of expenses using an electronic spreadsheet or accounting computer programs, which are easier to organize, sort, and change if needed. Generally, this type of ledger will feature a number of different columns including the date, invoice number if applicable, a description of the product or service, and the amount received for it.
Keeping a thorough sales ledger is important for a business for a number of reasons. Not only does it help to keep track of profits and losses, but it can help to reveal purchasing trends, or other types of sales data that may give clues to successful advertising campaigns or store displays, for example. In addition, the ledger can be a helpful tool for preparing tax returns at the end of the year, and can also be invaluable for detailing profits and expenses if the company is ever audited.
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