Another tool used by accountants to evaluate financial performance is project costing. It is also referred to as contract or job costing. This lesson uses the term ‘job’ throughout. Job costing focuses on a specific long-term project customarily associated with a contract signed with a customer.
Control accounts act as a single sum related to a large group of individual accounts. Examples include accounts receivable and accounts payable on the balance sheet. It is rare to find a control account on the income statement. Most accounting software use subsidiary ledgers with control accounts.
One of the best parts of being a bookkeeper is seeing employees smile when they utilize employee benefits. There are a multitude of different employee benefits out there including: 1) Health Insurance, 2) Retirement, 3) Life Insurance, 4) Dental Care, 5) Vision Care, 6) Cancer Insurance, 7) Disability Insurance and 8) Child Care.
Control accounts are used when there are multiple third parties interacting with the business in regards to similar function. Control accounts reduce the workload for bookkeeping by using subsidiary accounts or schedules *. The aggregated value is reported as one line of value on the financial report.