Kontrollkonten

Kontrollkonten is a term used in Norwegian accounting and finance that translates roughly to "control accounts" or "clearing accounts." These are internal ledger accounts used by businesses to simplify and organize their accounting processes. Instead of posting every single transaction directly to a detailed sub-ledger, a summary amount is posted to a control account in the general ledger. The detailed transactions are then maintained in a separate subsidiary ledger or by other means.

The primary purpose of control accounts is to ensure that the total of the subsidiary ledger balances matches the balance in the corresponding control account in the general ledger. This reconciliation is a crucial step in maintaining the accuracy and integrity of a company's financial records. For example, a business might have a "Accounts Receivable Control Account" in its general ledger. The sum of all individual customer balances in the accounts receivable subsidiary ledger should equal the balance in this control account.

Common examples of control accounts include accounts receivable, accounts payable, inventory, fixed assets, and bank accounts. By using control accounts, businesses can reduce the number of entries in the general ledger, making it easier to manage and audit. It also aids in identifying discrepancies quickly, as any imbalance between the control account and its supporting details signals a potential accounting error that needs to be investigated and corrected. This system streamlines the reconciliation process and provides a higher level of confidence in the overall financial statements.