Control accounts training is about to learn what ledger accounts are, which summarise a vast number of transactions. They are a part of the double-entry system. Control accounts are done to verify the accuracy of the ledger accounting system. They consist of payables and receivables balances to get control accounts.
Many accounts in the financial reports, for example, in the balance sheet is highlighted as the control account. There are many transactions in the Subsidiary ledgers prepared for all the money in and money out calculations.
The general ledger is declared with the details as to where the cash came from, the date it was paid, who it came from, etc.
Control Accounts Training
A control account is managed to get a balance of a particular account for a specific period. It is considered an essential line for an account, which is then transferred to the income statement or balance sheet depending on the type of reports.
Purchase ledger account or Payable Control Accounts :-
The accounts payable control account is an account in the general ledger used to track review transactions associated with accounts payable.
Adjustment within the sum of the individual supplier accounts (personal accounts) and control account, the ledger creates an effective internal control system for the business to make sure that all activities have appropriately posted.
Accounts Payable Control Account Postings
The two main transaction types for accounts payables are the payment of cash to suppliers and credit invoice purchases transactions. Utilizing the Accounts Payable Control Account primary objective of the payables control account is to provide the transaction information associated to each supplier to be kept in a different subsidiary ledger while keeping the summary of postings to a general ledger.
Uses of Control Accounts
When we deal with a small company, the account is maintained in one account known as general ledger and trial balance and data can be obtained from the same ledger. On the other hand, In a large company, it is challenging to keep everything in a single accounting. That's the reason they make subsidiary ledgers like accounts receivable ledger and statement payable. The subsidiary ledgers can make a part of the double-entry system and to obtain a trial balance; it is necessary to get information. In order to avoid these situations, control accounts are maintained in general accounting.
Advantages of Control Accounts
- Control accounts allow a single trial balance.
- Any person from the company can maintain the control account to keep a check against fraud if done.
- Control accounts are specially maintained to identify errors in the subsidiary account, but the use of them gives a company several additional benefits.
- Control accounts help to quicken the process of management accounts data as a control account can utilize to reconciled and extract data without waiting for individual balances
- If the balance does not match, then only the reports whose control account does not reconcile the needs to be inspected for removing errors.
- Control accounts help to deduct the amount of detail needed in the general ledger.
Course Content in Control Accounts Training:
- Development of management accounts
- Reconcile and Maintain the bank accounts, cash postings
- Working with journals and spreadsheets.
- Management of fixed assets registers was ensuring adherence to capitalisation policy and Accounting Standards.
- Calculating, reconciling Journals and posting like Depreciation, Accruals, Prepayments, lease of assets, wages, PAYE, Loans and more
- Summarising and processing various reports for management review.
- Preparation of month-end accounts