Bridge account


The bridge account is an account of the accounting software or systems and is not included in the accounting plan. Its objective is to make a provisional registration to later make the respective adjustment.

In other words, the bridge account allows a balance to be entered into the accounting system temporarily. This, so that the records match.

In that sense, we must remember that, when working with an accounting system, if the registration is not done completely, the process cannot be completed. In other words, if an increase in an asset account is being reported, which would be an increase in the “Debt”, this must be accompanied by a similar movement in the “Credit”. Otherwise, the software does not allow you to complete the registration.

Then, there are circumstances, such as those that we will comment below, where, in case of doubts or lack of time to complete the registration, a bridge account is used to allow the action to be completed.

You can say that this account is used as a wild card, so that the accounting system can complete a task. Thus, it should be noted that at the end of the accounting period, the balance in this account should be equal to zero.

Bridge account uses

Some uses of the bridge account can be the following:

  • When there is no certainty of the accounting accounts that should be used. Then the person in charge uses this tool and can then make the corresponding inquiries.
  • When, for example, several cash inflows are entered by customers. Then, a single entry is reported in the Cash / Bank account, on the "Debt" side, while said account with an increase on the "Credit" side can be used as a counterpart. Subsequently, in a second entry, a debit will be placed in the bridge account and a credit (record in the "Credit") in the corresponding account receivable, differentiating for each client.
  • When you are entering the asset accounts for the first time and you want to suspend the actions to resume them later. In this case, to match the counterpart and to comply with the principle of double entry, a bridging account will be used in the “Credit” (The income from the assets goes in the “Debt”).

Bridge account example

Suppose the company is registering its assets for the first time and wants to temporarily suspend the process:

Cash / Banks20.000
Accounts receivable15.000
inmobilized material25.000
Bridge account72.500

As we can see, the process is incomplete, lacking, for example, intangible assets and liability and equity accounts. So, to suspend the actions, we use this account and complete the task.

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