Is the general ledger of a business started off from scratch each year?

No, the general ledger of a business is not started from scratch each year. Instead, it maintains a continuous record of all financial transactions over time, carrying forward the balances from previous years. At the beginning of a new fiscal year, the balances are typically rolled over to reflect the company's financial position, allowing for ongoing financial tracking and reporting. However, businesses may close their books for the previous year and prepare financial statements before starting a new accounting period.