Articles | Updated 29 October 2026
What Is an Accounting System? Receivables and Payables for Shop Owners
An accounting system is the way you record every transaction that involves money, whether selling, buying, paying or receiving, in good order under accounting rules, until you can produce a profit and loss statement and a statement of financial position. Receivables are money others owe you; payables are money you owe others. These two are at the heart of a shop's accounting system.
What does an accounting system include?
Chart of accounts
What it does: The list of every account the business uses
Example in a shop: Cash, receivables, inventory, sales revenue
Journal entries
What it does: Records every transaction as debits and credits
Example in a shop: One sale made today
Receivables
What it does: Tracks money customers still owe
Example in a shop: A company customer has not yet paid for the goods
Payables
What it does: Tracks money we still owe suppliers
Example in a shop: Raw materials due for payment next week
Financial statements
What it does: Summarise profit and loss, assets and liabilities
Example in a shop: How much profit this month
Tax
What it does: Adds up output tax, input tax and withholding tax
Example in a shop: Getting PP.30 ready every month
| The | What it does | Example in a shop |
|---|---|---|
| Chart of accounts | The list of every account the business uses | Cash, receivables, inventory, sales revenue |
| Journal entries | Records every transaction as debits and credits | One sale made today |
| Receivables | Tracks money customers still owe | A company customer has not yet paid for the goods |
| Payables | Tracks money we still owe suppliers | Raw materials due for payment next week |
| Financial statements | Summarise profit and loss, assets and liabilities | How much profit this month |
| Tax | Adds up output tax, input tax and withholding tax | Getting PP.30 ready every month |
What are receivables and payables?
Receivables are people or companies who have bought from us but not yet paid, for example a sale to a company customer on 30-day credit. The money is ours but has not reached the bank account yet, so it has to be collected in full.
Payables are people or companies we have bought from but not yet paid, for example raw materials bought on 30-day credit. Keep track of the due date, because paying late can cost you credit with the supplier.
A shop with less cash in the bank than profit in its statements usually has a lot of receivables outstanding. A good accounting system must show straight away who owes how much and when it is due.
Example: one bill flowing through to the statements
Say a shop sells goods to a company customer on credit for 10,000 baht, VAT 7% of 700 baht, 10,700 baht in total, and the goods cost 6,000 baht. The accounting system records:
Issue the tax invoice
Debit: Receivables 10,700
Credit: Sales revenue 10,000 and output tax 700
Deliver goods
Debit: Cost of sales 6,000
Credit: Inventory 6,000
Customer transfers the money
Debit: Bank deposits 10,700
Credit: Receivables 10,700
| Step | Debit | Credit |
|---|---|---|
| Issue the tax invoice | Receivables 10,700 | Sales revenue 10,000 and output tax 700 |
| Deliver goods | Cost of sales 6,000 | Inventory 6,000 |
| Customer transfers the money | Bank deposits 10,700 | Receivables 10,700 |
What shows in the statements
This month's profit and loss shows revenue of 10,000 baht, cost of 6,000 baht and gross profit of 4,000 baht. The 700 baht of output tax is not the shop's income; it is money to remit to the Revenue Department in PP.30. If there is input tax in the same month, for example raw materials of 5,000 baht with 350 baht VAT, the shop remits only 700 minus 350, which is 350 baht.
If the customer has not paid yet, the 10,700 baht stays in receivables. The statements show a profit, but the money has not arrived. That is why you should check receivables every week.
A separate accounting program vs accounting inside an ERP
If the accounting program is separate from the sales program, someone has to key sales and purchase bills into the accounting program again, and every mismatch means checking bill by bill. With accounting inside an ERP, sales bills, purchase bills, receipts and payments post to the journal the moment they are recorded. The accountant is left to review and close the period, with nothing to retype.
The accounting system in GORINY
GORINY posts to the books automatically from every bill. It has an adjustable chart of accounts, a journal and general ledger, trial balance, profit and loss, statement of financial position, cash flow statement and budget. You can see receivables and payables, get warnings for supplier bills due within 7 days, reconcile bank accounts, depreciate fixed assets and close the fiscal year. Annual financial statements that must be filed and certified by an auditor still need your accountant and auditor; GORINY gets the numbers ready to send.
Frequently asked questions
- What is an accounting system, in simple terms?
- An accounting system is recording every money transaction in good order, so you know how much profit the business makes and what it owns and owes.
- How are receivables and payables different?
- Receivables are people who owe you money; payables are people you owe money to. Receivables are assets; payables are liabilities.
- Does a small shop need an accounting system?
- Every business should have one. Juristic persons are required by law to keep accounts, and VAT-registered businesses must keep tax reports and file tax every month. An accounting system gets the numbers ready to file without adding things up by hand.
- Do I still need an accountant if I use an accounting system?
- Yes. The system records and produces reports, but checking accuracy, closing the annual accounts and work that needs an auditor's certification remain the job of your accountant and auditor.
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