Glossary

Accounting words, explained in plain language. These are the same short answers you get from the ? buttons in Righto, and each one links to a full article.

A

Attachment: A receipt, bill, invoice, or other document that supports a transaction. It stays inside your encrypted business file. Learn more about attachment: Attachments and records to keep

B

Bill: Money that you owe a vendor. Righto tracks it until you pay it. The expense counts when you pay. Learn more about bill: Bills and receivables

C

Cash basis: Income counts when you receive it, and expenses count when you pay them. A bill or receivable counts when it is paid. Learn more about cash basis: Cash basis
Category: What the money was for or where it came from, such as Software & Hosting or Service Revenue. Categories make up the Profit and Loss. Learn more about category: Categories and accounts
Chart of accounts: The full list of accounts in your books: assets, liabilities, equity, income, and expenses. Categories and financial accounts are both in it. Learn more about chart of accounts: Categories and accounts

D

Done: You checked this transaction: its category or match and its details. Done does not mean that the bank statement agrees. Learn more about done: Done and reconciled

F

Financial account: A real place where money is: a checking or savings account, a credit card, or a cash box. A statement can prove its balance. Learn more about financial account: Categories and accounts

I

In transit: One side of a transfer is recorded, and the money has not arrived in the other account yet. Learn more about in transit: Add a transaction, transfer, or journal entry

J

Journal entry: An advanced entry with debit and credit lines, for corrections and adjustments that no other type fits. Debits must equal credits. Learn more about journal entry: Add a transaction, transfer, or journal entry

L

Loan: Money that you borrow is not income. Payments reduce the loan, and only the interest part is an expense. Learn more about loan: Transfers, owner money, and loans

M

Match: Link a bank line to a record that you already have, such as a bill or a transfer, so that it counts one time only. Learn more about match: Categorize, match, and mark Done

O

Opening balance: The balance of an account on the date that your books in Righto start. Get it from a statement. Learn more about opening balance: Create a business
Owner contribution: Money that you put into the business yourself. It is equity, not income. Learn more about owner contribution: Transfers, owner money, and loans
Owner draw: Money that you take out of the business for yourself. For a sole proprietor, it is equity, not an expense or wages. Learn more about owner draw: Transfers, owner money, and loans

R

Receivable: Money that a customer owes you. Righto tracks it until the customer pays. The income counts when the money comes in. Learn more about receivable: Bills and receivables
Reconciled: The transaction is on a statement, and the statement's ending balance agrees with your books for that period. Learn more about reconciled: Done and reconciled
Reviewed: Every line in the period is Done, but no statement balance was checked. It is not reconciled yet. Learn more about reviewed: Done and reconciled

S

Split: Divide one amount across more than one category. The parts must add up to the full amount exactly. Learn more about split: Categorize, match, and mark Done
Statement: Your bank's record of one account for one period, with the starting balance, each transaction, and the ending balance. Learn more about statement: Bank and card statements
Statement ending balance: The balance printed on the bank statement on its end date. Copy it from the statement, not from Righto. Learn more about statement ending balance: Reconcile an account

T

Tag: An optional label for reports, such as a project or a client. Tags do not replace categories. Learn more about tag: Categorize, match, and mark Done
Transfer: Money that moves between two of your own accounts, such as checking to savings or a credit card payment. It is not income or an expense. Learn more about transfer: Transfers, owner money, and loans