Accounting Terms and Definitions
General ledger maintains the chart of accounts and stores company transactions including assets, liabilities, equity, revenues, and expenses. As the core of an accounting system, the GL provides a complete record of financial transactions over the life of a company.
Accounts payable are liabilities for the purchase of goods and services to a creditor, provided in advance of payment. This AP module manages a fully featured electronic approval and utilizes comprehensive paperless invoicing, creating a robust and automated workflow.
Accounts Receivable are assets on outstanding credit for the sale of goods or services, as well as the collection of those funds. With substantial yet streamlined invoice entry, this AR module operates with extensive reporting and credit invoicing, congruent with other applications.
Cash Management, or Bank Book, is the collection of cash account transactions for the reconciliation of balances. Bank book uses a three-way reconciliation to provide an accurate view of cash on hand. Digital files of canceled items from the bank are automatically reconciled with account balances in the general ledger.
A budget is, once prepared, a quantifiable strategy for delegating future financial activities. The summarization of these estimates is called an income statement and balance sheet.
Consolidations is the combining of multiple entities into a single entity. In accounting, consolidations regards the parent company and its subsidiaries as one when the cumulative assets result in one report.
Dimensions allows the creation of additional values on the fly without having to create corresponding General Ledger accounts. Dimensional accounting delivers real-time visibility into a company's performance using dashboards and financial reports.
Financial Reporting are statements such as a balance sheet, income statements, and statements of cash flows. They report quarterly earnings and all information relating to those earnings.
Multi-entity management prepares financial statements of a parent company and its locations, departments, and divisions as one unit.
The term Paperless Office refers to using digital or electronic files instead of paper documents. Eliminating paper reduces company expenses for printing, filing, and storing documents. Accounting systems that have integrated paperless office functionality let users drill-down to invoice images and support documents stored in the system.