• The general ledger reflects a summary of transactions between the business and debtors and creditors rather than being bogged down in detail, making it a better tool for decisions concerning issues that impact all company operations.

• Control accounts can serve as an accuracy test for the calculations and postings to the individual ledger accounts.

• Control accounts help to limit the number of accounts in the general ledger.

• You can separate duties based on your control accounts, having one person responsible for all accounts in the debtor’s subledger (accounts receivable) and another person responsible for all accounts in the creditor’s subledger (accounts payable).

• Your accounting clerks make entries in two places: the vendor card or customer card on which the purchase or invoice is recorded and in the accounts payable or accounts receivable subledger. If you are using a computer system, these accounts are electronic files on your computer. This gives you more ways to be sure your cash receipts and disbursements are accurately recorded. If there are differences when closing out the vendor accounts or customer accounts with what is posted in the ledgers, you know you have a problem that needs to be found.