Control Account

A control account is a summary account used in accounting to keep track of a large number of individual transactions efficiently. It consolidates detailed data from subsidiary accounts into a single, higher-level account, making it easier to monitor and verify financial information. For example, a company's accounts receivable control account summarizes all individual customer balances. This helps ensure accuracy, simplifies reconciliations, and provides a clear overview of specific areas within the financial statements without needing to review every individual transaction.