Do you actually know of all accounts in your financial data, there are a few that are considered your most important accounts? For this reason, they should be closely watched, reconciled and maintained at a higher level than some of your other accounts. So what are these accounts?

  1. Cash: Being the account that you use to pay and receive money, it is always incurring debit and credits to it which creates a necessity to watch and reconcile the account.
  2. Accounts receivable: This is where most of your income comes from. That being said, it would be imperative to keep a close eye on this account.
  3. Accounts payable: For anything bought on account (which generally is a lot especially for a business with inventory), most cash payments will come out of here.  Watching the spending is clearly of importance here.
  4. Inventory: Any goods/items you have is inventory and becomes  your main source of assets that help your company make money. Reconciling this account, and checking balances frequently keep your inventory in line.
  5. Sales: With customers buying your items on credit or as a cash sale makes this account always running a balance. As important as accounts receivable, this account is crucial in bringing in cash for your company, so why not keep this account in check?

 

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