Are you associated with the business world and maintain the selling and purchasing of your products and services? You must have heard of the trade debtors’ control account so far. This refers to a sales ledger control account and serves the same cause. A major and prominent part of the balance sheet covers this part as well. This aims to equal the balance of every individual who is in the role of a customer.
Furthermore, if you need a piece of complete information related to the details of the amount that you owe from your customer, the swift way to get the details is through the control account as well. Another aim to maintain the control account is it helps to keep the bookkeeping going in a seamless way. This makes the complicated accounting tasks like debit and credit of all the transactions seem easy and less time-consuming. Further in this blog, we have got you covered with the introductory explanation of the sales control account along with the purpose of maintaining one.
What is Sales Ledger Control Account
The sales ledger control account refers to monitoring the amount of money that your business is expected to receive from the customers from time to time. On the other hand, the general account that serves as complimentary for such details is known with the name of the purchase ledger account.
This aims to target the amount of money that your company or business owe to the people who are in trading relations with you and act as buyers who are interested in making a purchase about your offered services and products.
Get in touch with one of our expert team members to learn more about the sales control account. We will love to hear you out and try to provide the best possible solutions.
The Purpose of Maintaining Sales Control Account
By now, you must be wondering what is the cause to aim the maintenance of the sales control account and keep it as a major part of the balance sheet. Several people are confused regarding the targets of this account as they don’t consider it as a serious part of accounting and have an orthodox thought that the records are allowed to maintain even without a sales control account.
However, the serious and professional way to monitor the amount of money that your business owes from the individuals who are in the role of the customers is only possible in an accurate way when you ensure to maintain the control of your sales account. The prominent features related to the purpose of maintaining the control account include the following points:
- Each and every transaction of the customers is recorded in the customer’s ledger cards as well. The details of receipts, invoices and other credit notes are reflected through this account.
- The control account aims to ensure the accuracy of the balance sheet and makes it error-free. This is only possible when the details are double-checked by the use of a sales ledger account.
- The differences that are found afterwards between the balance sheet and the control account can be further investigated and controlled to ensure the fine records in a hassle-free manner.
These days the accounting software allows the management of multiple accounts at the same time and makes the process less time-consuming. This spares your time to invest more in growing your business valuation. For such easy use and accounting process, there is the requirement of a professional who is good at managing the skills of using the accounting software.
The Bottom Line
Now that you have developed a basic understanding of the sales ledger control account with a fair amount of information gathered in this blog, we can sum up the discussion finally. There is no doubt that the sales control account is able to set you free from the tension of manual records and makes the process smooth and error-free to a maximum level. As the chances of accuracy are maximised in this process, the risk of poor maintenance of the accounts is also considered seriously.
We hope these few minutes of reading will help you to enjoy the error free records of your transactions and spare your time to focus more on your business growth.
Disclaimer: The information about the sales ledger control account provided in this article, including text and graphics, is general. It does not intend to disregard any of the professional advice.