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?
- 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.
- 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.
- 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.
- 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.
- 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?