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[Noah.Hechenberger]

What are several benefits and disadvantages of control account?

Thanks,

[Oxmacro]

What are several benefits and disadvantages of control account?

Thanks,

Hey Noah,

In short the benefits of a system of control accounts and subsidiary ledgers include: provide a double-checking mechanism where the comparison of subsidiary ledgers and the control account can identify any errors in the recording process, accounting sectors can be initiated in order to specialise into a particular area of subsidiary ledgers, removes unnecessary detail in the General Ledger account; making the reporting process more efficient through posting one summary figure of the subsidiary ledgers, and assists in enforcing internal procedures on staff, as well as to individual debtors; identify who is slow in paying etc.
Disadvantages: More work, more time, more money spent on wages and administrative costs.
If anyone has more, feel free to add!