Control Account: Definition - SS1 Accounting Lesson Note

A control account is a type of financial account that summarizes and represents the activity and balances of a group of related accounts within an organization's financial records. It serves as a single point of reference for the balances of multiple accounts, making it easier to track and manage the financial activity of a particular group or department within an organization.

For example, a company might use a control account to track the balances of all of its customer accounts receivable. Rather than having to review each individual customer account, the company can use the control account to quickly see the total amount owed by all customers, along with any payments or adjustments made to those accounts. 

Control accounts are a valuable tool for financial management and help organizations to stay organized and efficient in their record-keeping.