Accounting 101 – Basic Terminology

Mon, 14.04.2025, 08:00

Accounting is not for everyone; many find it overwhelming. Nevertheless, it is not impossible: Atlanto accounting software helps you master it. In this blog, we provide a brief introduction to the basic concepts of accounting to help you along.

We can reassure you: It is surprisingly easy to learn the basics of accounting. In our blog you will find articles that teach everything you need to know. Today, we start with an introduction to the most important accounting terms. If you know these, you can easily take care of your accounting with Atlanto’s accounting software. Even those of you lacking mathematical aptitude.
 

Basic Terminology

• Financial Accounting
  Branch of accounting that deals with the company's financial transactions. These are documented, monitored and analysed according to applicable regulations. It is used to monitor the company's financial position and prepare financial reports for the tax authorities.

• Accounts Receivable
  A branch of financial accounting that deals with debtors, i.e. customers who pay invoices for goods or services. This includes the posting of invoices, as well as the dunning process and the monitoring of invoice due dates.

• Accounts Payable
  Accounts payable accounting therefore deals with invoices from suppliers. It ensures that invoices are paid on time, and expenses are recorded correctly and on time.

• Payroll
  A branch of accounting that deals with the recording, invoicing, and posting of wages. This includes the administration of payroll, the maintenance of personnel data, the calculation of wages and other allowances (e.g. for children), as well as the associated tax and insurance contributions. In addition, important documents such as payslips are created under payroll accounting.

• Double-Entry Accounting
  Double-entry accouting is so called because all income and expenditure is recorded twice: in the debit and credit accounts. This means you can always recognise which account a particular transaction was made to and why. In Switzerland, limited liability companies, public limited companies, sole proprietorships and partnerships with an annual turnover of more than CHF 500,000 are obligated to keep double-entry accounts.  
   

Do You Know Our Accounting Software?