Control account

 

Control accounts are general ledger accounts in your Chart of Accounts that are used to reconcile your general ledger with your clients/matters.

 

For example, a trust bank account is a control account.  When you enter a trust receipt, the program automatically updates both the client/matter and the trust bank general ledger account.  The balance in the trust bank general ledger account must always agree with the total trust funds on your clients/matters, for that bank account.

 

In contrast, your Petty Cash general ledger account is not a control account.  Funds unrelated to specific clients/matters flow through your Petty Cash account, and because they are unrelated to clients/matters, you record these transactions using the Journal Entries program.

 

The System Balance report displays your control accounts and their general ledger and client subledger balances.  If the general ledger balance and client subledger balance for an account are not equal, the report will indicate that your system is out of balance.  

 

 

Sample control accounts