What is the check -up account?

A check account is a financial account responsible for maintenance of data from subsidiaries. For example, receivables accounts are money owed from customers who have purchased goods and services from the company. Each customer usually has his own financial account on the company's receivables. One check -in account is in the main book containing a summary amount of all accounts in the receivables magazine. Other control accounts may exist in the company's financial accounting system.

Accounting systems require the use of several magazines that contain detailed information. Magazines may include cash income and payouts, due and receivables, wages and other magazines. The magazine contains detailed information about each financial transaction that occurs in the normal business operations of the company. Information may include names, brief descriptions of transactions and data; The amounts of the dollar and the compensation of debit or credit and calculations may also be necessary for recording. This information is not necessary for the main book, especially PRoto that too much information can do the book, which leads to the use of a control account. Receivables have a commonly associated aging report so that companies can determine which customers did not pay their accounts. The company focuses on these individuals to collect excellent accounts. This schedule also works for due accounts that are owed by the company to suppliers or sellers. The schedule reports which charges that the company has come and how much it owes.

General books are the main accounting tool used by the Company to prepare the financial statements. Each individual and check -in account go to the test balance, which is a pre -financial statistical government on the list. The balance in the court proceedings is given by each individual account containing financial information. Accountants may review information about accuracy and validity before preparing a financial statement. A check -in account may before completing an accounting cycle andClosing the books of the company.

A check account can be very subject to errors. Since the main book reports only the total sum of the diary, it is possible that inaccurate numbers will be in the diary. The accountant must review the magazine and elaborate each record for the accounting period. Each period usually corresponds to the calendar month. Accountants are looking for transpositions, duplicate items, incorrect calculations and other errors.

Companies can usually create their own sets of accounting magazines, books and control accounts. This flexibility allows the company to create a system that works best for its operations. The use of control accounts may not be necessary depending on the company's operations.