It is an important part of Company Accounting to reconcile the subsidiary accounting modules to your control accounts
Certain accounts in your chart of accounts should be marked as Control Accounts i.e. Trade Clients, Banks, Trade Suppliers and Stock On Hand. When you designate an account as a Control Account by marking this box, this account will not be available for posting General Journals and dissecting receipts and payments against.
This is done to stop the possibility of these accounts becoming "Out of balance" with the subsidiary ledger.
When setting up your system initially you may wish to leave a control account unmarked so you can enter the opening trial balance, you can then return at a later stage and set the account to be a control account once the ledgers are in Balance.
It is recommended that this task is undertaken for the software modules you have installed on a monthly basis, and where possible a hard printed copy of the balanced system kept for auditing and future reference purposes. The description below is designed for one company. If you have multiple companies, simply repeat the process.
In addition to doing these tasks each month you can use the same rules to make sure that your systems are balanced when setting up the system for the first time.