Summary
The auxiliary accounting balance is an accounting statement showing all cash app data of a company's third-party accounts in table form ;
There are two types of auxiliary balances: one for customers (with customer receivables) and one for suppliers (with supplier payables);
The auxiliary balance is not mandatory but allows you to monitor the company's cash flow and reduce accounting errors ;
The information present in an auxiliary balance is: the general and auxiliary account number of the third party, its name and the financial outstanding.
Did you know?
With Indy, you can edit your accounting balance , as you go along, all year long!
I create an account
Auxiliary accounting balance: definition
The auxiliary accounting balance is an accounting statement that is presented in the form of a table. It details all the third-party accounts of a company during an accounting year, that is to say:
Customer accounts (401 accounts);
Accounts payable (accounts 411).
There are several types of auxiliary accounting balances, each dedicated to a specific category of accounts. In the auxiliary balance for customers , customer receivables are detailed . For an auxiliary balance for suppliers , debts with the latter appear .
The auxiliary accounting balance is different from the general balance, which presents an overall overview of all the company's accounts. Keeping an accounting balance can be very useful but is not mandatory . It is used to ensure efficient and accurate management of the company's finances.
The usefulness of the auxiliary accounting balance
This document will first of all provide a detailed and precise view of all the company's customer and supplier accounts. Its interest is multiple.
Reduce accounting errors
With the auxiliary balance sheet, you will be able to control the financial transactions related to your customers and suppliers as the year goes on. In the event of an accounting error or abnormal balances : you will see it quickly! It will then be possible to quickly correct the irregularity. When preparing your annual accounts (the balance sheet and the income statement), having kept an auxiliary balance sheet will make your task easier.
