What is an ancillary account?

Many companies choose to decline third-party accounts, in other words accounts payable and receivables, in subsidiary accounts. For accountancy training Best school of accountancy In Pakistan. Presentation of this subdivision but also of the interest it may have in the course of the activity of a company.

What is an auxiliary account?

In accounting language, an auxiliary account will be similar to a subdivision of a general account . However, in practice, it is clear that it will only exist for the accounts of third parties either the accounts "401 Suppliers" and "411 Customers".

Each auxiliary account thus includes the date of the operation, the general account number, the auxiliary account number defined from a coding which may be company-specific, the name of the supplier or the customer and the items Accountants encountering movements of funds.

Why use subsidiary accounts for a business?

Although not compulsory , subsidiary accounts are often used by companies at least once the number of accounting movements becomes large. It should be said that they make it possible to see more clearly in the accounting and to ensure a better follow-up of the operations specific to each customer or supplier.

Thanks to the auxiliary accounts, it is indeed easy to spot uncompleted supplier invoices, uncaught customer invoices , bills awaiting reception or issuance, but also duplicates that are more frequent than it seems.