Keep Records Without Knowing the Terminology
Pre-Accounting Guide for Non-Accountants
Current account, trial balance, offsetting… Accounting jargon intimidates beginners. Yet, the number of terms you need to know for daily bookkeeping barely exceeds the fingers of one hand. We've explained what they are and how to use them.
Accounting terminology has an intimidating side. When talking to your accountant, words like "trial balance", "offset", or "subsidiary" come up, and you feel left out of the conversation.
The good news is: most of those words belong to general accounting and aren't your concern. The number of terms you actually need to know for daily bookkeeping is six.
Six terms you need to know
| Term | Plain language equivalent |
|---|---|
| Current (Account) | A customer's or supplier's account card. "Mr. Ahmet's current account" = your transaction history with Mr. Ahmet |
| Balance | The net status between you and that person. If positive, they owe you; if negative, you owe them |
| Collection | Receiving money from a customer |
| Payment | Giving money to a supplier or for an expense |
| Due Date | The date when the money is supposed to be paid |
| Opening / Carryover | The amount you have on hand on the day you start keeping records |
Once you know these six, you'll understand ninety percent of the screens. You'll learn the rest as you use them.
The two most confused pairs
An invoice and a collection are not the same thing. An invoice means, "I sold you this much goods, you owe me this much." A collection is the moment the money actually arrives. You might issue an invoice and not receive the money yet — most cash flow crunches stem precisely from this gap.
A transfer and a payment are not the same thing. A transfer is between your own accounts: like depositing money from the cash register into the bank. Your money changes location, but it doesn't decrease. A payment, on the other hand, is money leaving the business. Confusing these two makes your expenses look higher than they actually are.
Daily routine: five minutes
Squeezing record-keeping into one day a month is the method people give up on the most. Here is what the daily routine looks like:
- Enter the invoices you issued during the day into the system (if you are already issuing them in the system, skip this step).
- Process incoming money as a collection.
- Log the expense you made and attach its receipt.
If you have a habit of accumulating receipts, expense receipt scanning shortens this step: you take a photo of the receipt, and the amount and date are read automatically.
Monthly routine: half an hour
At the end of the month, look at three things, no need for more:
- Overdue receivables. Who, how much, for how many days. As this list gets shorter, your cash flow eases up.
- Income-expense summary. What came in this month, what went out, which item is higher than expected.
- Cash-bank balance. Does the figure in the system match reality? If not, it means a record is missing.
Four mistakes beginners make
- Not entering opening balances. The most frequent and costly mistake. The system starts from scratch, and your old receivables won't show.
- Attempting to process past years retroactively. It almost never ends and kills your motivation. Set a cutoff date and start from there.
- Creating the same company twice. The balance splits in two, and both look incorrect.
- Mixing company and personal expenses. If grocery shopping and office rent come out of the same cash register, no report will make sense.
Someone to ask when you get stuck
For someone who doesn't know accounting, the hardest moment is when they can't figure out why a number turned out a certain way. This is where the assistant in Qolay.App comes in handy: instead of searching through menus, you can type "what is my VAT status this month" or "what is Mr. Ahmet's balance" and get an answer. It also prepares invoice drafts, but you give the approval before sending.
We explained how it works in the Qolay Assistant article.
Frequently asked questions
Do I need to take an accounting course?
Not necessary for basic bookkeeping. The six terms above and the habit of regular recording are enough. Ledgers and tax returns are already your financial advisor's job.
How long does it take to get used to it?
The first month feels messy, the second month settles in. The real challenge isn't learning, but turning daily entry into a habit.
What happens if I enter a wrong record?
It can be corrected. If there is a recorded e-document, correction rules work differently; we touched on this topic in the e-invoice and e-archive article.
Where can I learn the basic concepts?
The what is basic accounting article explains its scope and difference from general accounting in plain language.
You don't have to be an accountant. You just need to be able to see your own numbers — and that means six terms and five minutes a day.
You can start by opening a free account on Qolay.App and creating your first current account card.
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