A Control Account is a type of account in the general ledger that consolidates and summarizes transactions recorded in subordinate accounts within the books of an organization. It is used to maintain a clear and categorized track of finances while reducing details in the general ledger. For example, an "Accounts Receivable" control account in the general ledger might summarize all customer invoices and payments, with the detailed data stored in a subsidiary ledger.

This system simplifies the reconciliation process by allowing discrepancies to be resolved at the subsidiary ledger level without altering the control account unnecessarily. For instance, if a company notices a mismatch in their Accounts Receivable control account, they can review the customers’ individual accounts to locate the discrepancy.

Control accounts support accuracy in financial reporting and are closely monitored during reconciliations, such as during the process of Month End Close. These accounts are especially relevant in creating reconciliation tasks for balance sheets, as seen in software like Easy Month End, which can help automate such processes efficiently.