Comparing Accounts Receivable & Accounts Payable: A Swiss Perspective
In this article, we will explore and compare the concepts of accounts receivable and accounts payable. These two accounting components are at the heart of every successful business and are crucial for managing your liquidity and building successful long-term business relationships.
Book a free initial consultation with our experts.
Book a callHighlights
- Accounts Receivable forms part of current assets, representing money owed by customers to the company
- Accounts Payable indicates money owed to suppliers, classifying as current company liabilities
- Trade Receivables Managing requires accurate tracking in the sub-ledger for financial records
- supplier payments Optimizing enhances the company's short-term liquidity management
- debtor and creditor management Adhering to Swiss regulations is crucial for efficient
Content
- Comparing Accounts Receivable & Accounts Payable: A Swiss Perspective
- Basics: Accounts Receivable and Accounts Payable
- Accounts receivable: focus on trade receivables
- Accounts Payable: Keeping Track of Liabilities
- Swiss regulations and legal foundations
- Debtor management and receivables management
- Creditor management and payables
- Accounts receivable and accounts payable in comparison: differences and similarities
- How Nexova supports you in your accounts receivable and accounts payable management
Basics: Accounts Receivable and Accounts Payable
Debtors
Accounts receivable represents customers or business partners who owe your company money. It arises from the sale of goods or services on credit. In accounting, accounts receivable forms part of your current assets.
Creditors
Creditors are suppliers or business partners to whom your company owes money. This arises from the purchase of goods or services on credit. In accounting, creditors form part of your current liabilities.
Book a free initial consultation with our experts.
Book a callAccounts receivable: focus on trade receivables
Accounts receivable is an essential component of bookkeeping that documents trade receivables from customers. It represents the outstanding credit that customers owe you.
Accounts are kept for each individual debtor in the sub-ledger, also known as the auxiliary ledger. This is known as “debtor accounting” and supports the financial accounting in the general ledger (Fibu).
General ledger and sub-ledger: simplifying through accounting software
A collective account is kept in the general ledger (Fibu) into which all customer credit balances and debtors are transferred from the sub-ledger. Under the new accounting law (nRLG), this collective account is called “trade receivables”. Collective accounts are all general ledger accounts for which a sub-ledger exists, such as accounts receivable and accounts payable.
Calculate the cost of your accounting easily here.
Price calculatorAccounts Payable: Keeping Track of Liabilities
Accounts payable is the counterpart to accounts receivable and is a central aspect of financial accounting.
Accounts payable is used for managing payables to suppliers who provide goods or services to the company. Optimal control of payments to suppliers can secure your company's short-term liquidity.
Balancing payment terms and supplier relationships
Accounts payable essentially deals with short-term loans you receive from your suppliers. Ideally, you want to delay payments as long as possible without incurring additional financing costs. However, it is crucial that goods and services are delivered on time and are of adequate quality.
Missed payments can be both inconvenient and costly. For example, if your internet connection is disconnected due to late payment, it can lead to lost working time, disgruntled employees and lost profits.
General ledger, sub-ledger and detailed analysis of payables
Accounts Payable allows you to identify all payables in the general ledger and sub-ledger (auxiliary ledger). The general ledger lists the totals from the sub-ledger, which provides an initial overview of the situation.
However, it is essential to keep a sub-ledger to get a deeper insight into the cash flow related to each individual supplier (creditor). This detailed analysis allows you to optimise your financial strategy and manage your liquidity in a targeted manner.
Accounts payable is a dynamic accounting tool that allows you to manage your financial obligations carefully and efficiently. By keeping an eye on your liabilities and acting proactively, you can improve your liquidity and build successful long-term business relationships with your suppliers.
Calculate the cost of your accounting easily here.
Price calculatorSwiss regulations and legal foundations
Accounting in Switzerland is subject to the provisions of the Swiss Code of Obligations (CO) and the regulations of the Swiss Accounting Law. The most important regulations for debtors and creditors are:
Dunning procedure and limitation period
There are different stages of the dunning procedure for the assertion of claims, beginning with the first reminder and ending with debt collection. The limitation period for debtor claims is usually 10 years but may be shorter in certain circumstances.
Book a free initial consultation with our experts.
Book a callDebtor management and receivables management
Credit assessment
Checking the creditworthiness of your customers before doing business with them is an effective way to minimise bad debts. In Switzerland, you can use various credit agencies, such as ZEK, CRIF or Bisnode, who can provide you with information on the solvency and payment behaviour of potential customers.
Payment terms and discounts
You should establish clear payment terms with your customers to reduce the risk of payment delays. These include payment deadlines, payment methods and, if applicable, cash discounts.
Discounts are price reductions granted if the customer pays the invoice within a certain period of time. This can improve your customers' payment behaviour and increase your liquidity.
Dunning and collection
A structured dunning system is crucial for successful receivables management. Set fixed deadlines for dunning levels and communicate these clearly to your customers. If a customer does not pay despite several reminders, it may be necessary to involve a debt collection agency or a lawyer to enforce the claim.
Calculate the cost of your accounting easily here.
Price calculatorCreditor management and payables
Supplier evaluation and selection
Careful selection of your suppliers can help you minimise both costs and risks. Pay attention to factors such as payment terms, discounts, delivery times and quality of goods or services.
Early payment discounts and payment terms
Utilise early payment discounts to reduce costs when your liquidity allows it. On the other hand, make the most of lengthy payment terms granted to you by your suppliers to maintain your liquidity.
Automation and digitalisation
The automation and digitalisation of accounts payable processes can help to reduce errors and increase efficiency in accounting. For example, with accounting software solutions, you can scan invoices, post them automatically, and trigger payments.
Book a free initial consultation with our experts.
Book a callAccounts receivable and accounts payable in comparison: differences and similarities
Accounts receivable and accounts payable have both differences and similarities:
Differences
- Accounts receivable represents receivables, while accounts payable represents payables.
- Accounts receivable relates to the sale of goods or services, while accounts payable relates to purchases.
- Accounts receivable focuses on receivables management, while accounts payable focuses on payables management.
Similarities
- Both accounts receivable and accounts payable require structured and efficient management to ensure liquidity and financial stability of the company.
- The creditworthiness of business partners plays an important role for both debtors and creditors.
- Digitalisation and automation can lead to efficiency gains and cost savings in both accounts receivable and accounts payable management.
Book a free initial consultation with our experts.
Book a callHow Nexova supports you in your accounts receivable and accounts payable management
The professional management of accounts receivable and accounts payable is crucial to the success of your business. As your reliable partner for outsourced accounting in Switzerland, Nexova offers you comprehensive support in these areas:
- Handling your complete bookkeeping, including accounts receivable and accounts payable.
- Individual advice on optimising your accounts receivable and accounts payable management.
- Use of the latest software solutions to automate and digitalise your accounting processes.
At Nexova AG, we are committed to providing you with the best possible service and removing your unnecessary workload so that you can concentrate on what really matters: the success of your business.
Do not hesitate to contact us if you have any questions about accounts receivable and accounts payable management or would like to make use of our services. Our friendly and knowledgeable team is always happy to help.
We hope this blog post has given you a good overview of how accounts receivable and payable compare. We look forward to assisting you with your accounting concerns in the future.
Trusted by over 250 companies
Discover the diversity of our customers
Jan LichtenbergCEO, InSphero AGAs an internationally active biotechnology company that stands for innovation and the highest quality, we work exclusively with partners who meet our high standards. Nexova consistently impresses us with exceptional service quality, robust processes, and an impressive pace. The professional, solution-oriented, and efficient collaboration allows us to fully focus on our core business. Additionally, we would like to highlight the remarkable cost savings of 35% compared to in-house accounting. We particularly appreciate how Nexova quickly understands, develops, and promptly implements complex requirements – both within Switzerland and at our international subsidiaries. We can wholeheartedly recommend the Nexova team.
Pascal Willoughby-PetitCEO, TheLearning LAB GmbHNexova AG offers highly professional accounting services that have significantly enhanced our financial management at Learning Lab. Their team is precise and reactive, always delivering accurate and timely reports while promptly addressing our queries. With Nexova AG’s support, we manage our clients’ accounts and finances more efficiently. We highly recommend Nexova AG for their exceptional accounting services.
Marco BurgerCEO, Le Café Bar GmbHFor us as a new catering company, it is essential that our trustee understands our specific needs and responds flexibly to our requirements. In Nexova AG, we have found the ideal partner who supports us competently in all fiduciary matters and actively promotes our growth.
Jörg BuckmannManaging Director, BUCKMANN GEWINNT+Uncomplicated or serious? Or is it and? A young, clever team is at work here, offering excellent services, highly uncomplicated and competent. Instead of a prestigious reception, expensive offices and chocolates, there are fast services and competent services. For me as a one-man company, this is exactly what I need.
Florian JauchCo-Founder, Arvy AGArvy AG has found an exceptional partner in Nexova AG. Their very high level of expertise in FINMA-regulated industries ensures that our financial transactions are in safe and competent hands. What sets Nexova apart is their flat-rate pricing structure, which has helped us greatly with budgeting and financial planning. As a company committed to long-term success and integrity in investments, we are very satisfied with the services provided by Nexova AG.
Patrick RissiCo-Founder, Brainiegroup GmbHFor us as an EdTech startup, it is very important that our trustee is as digital and agile as we are. With Nexova AG, we have found the perfect partner who can actively support us in our growth.
That’s what our customers say
Your feedback matters
5.0 stars
- Marc Perren
Mr. Merz has a very broad knowledge and was able to help me with all my questions. The conversation was very pleasant and very informative for me. Thank you for your support.
- Jörg Buckmann
Uncomplicated or serious? Both here. A young, smart team is at work here, offering excellent services, highly uncomplicated and competent. Instead of a prestigious reception area, expensive offices and a few small gifts, you offer fast and competent services. For me as a one-man company, this is exactly what I need.
- Martin Gerber
I have been a Nexova customer for some time now and so far I am very satisfied! Thanks to the digital working methods and high responsiveness of the client managers, little time is lost in the daily process in particular. The prices are also very fair. Nexova handles the annual financial statements for me, including the tax balance sheet. The processes are standardized, which is a great advantage for audits (AHV and taxes). The two founders are two young, innovative guys and very serious.
- Florian Kreidler
The friendly and competent Nexova employee was able to answer my questions about company car taxation quickly and specifically. Thank you very much for this!
- Reto S
When I founded my company a year ago, I needed a reliable fiduciary partner. In addition to pure accounting, Nexova also offers me very good advice on all aspects of labor law. Thanks to the E-Post solution, I no longer even have to worry about my company mail and can focus purely on my service activities. My contacts at Nexova are always very friendly and pleasant to deal with. The complete package is simply TOP and I can only recommend Nexova!
- Pascal Zumstein
Top company & friendly owners. A highly recommended trustee.
- Seb Ur
Very good and competent advice!
- Louis Revel
Very satisfied with the work done and the service provided in terms of quality and price. I highly recommend
- David Leu
Professionally at a very high level. They are very good with Excel and could also support us with automation of processes.
- Stefan Burgener
I had a few questions about remote work and was advised super and free of charge. Thank you very much!
- Luca Märki
Very good service. Good and competent advice with friendly staff. I can definitely recommend
- Edward Buchanan
The Nexova team is very professional and I felt they always had my best interests at heart. I highly recommend Nexova and will continue to refer my clients to them and trust them with my business.
- Juliam Pantano
I am impressed with their outstanding service, especially in the field of accounting services, they demonstrate a professional approach and exceptional attention. As a lawyer, I have found Nexova to be a valuable partner in the financial world.
- Marie Ospina
I had an excellent consultation with Nexova AG regarding withholding tax. Their expertise is remarkably extensive and their guidance was invaluable, I highly recommend their services. A first class experience.
- Alan SchuetzFebruary 8, 2023
The Nexova Team is an important partner to our startup, enabling us to pass all of our accounting, tax and payroll duties. We specially value their expertise with Startups and flexibility, which allows us to plan and manage our financials effectively and to focus on the bottom line of our operations.
- Raphael H.April 7, 2023
We are very satisfied with Nexova as our trustee. Thanks to the Teams group chat, I can always count on very fast response times (of a few minutes). The Teams Chat group is great. With our old trustee, we had to write mails and always had to wait a long time for an answer and on top of that we were charged for every little question. Fortunately, this is not the case with Nexova.
- Philip ReckFebruary 25, 2023
Nexova solved my problem with a non-paying tenant quickly and efficiently. I was simply overwhelmed with the situation and glad for the competent legal advice. Nexova handled everything from the reminder with threat of termination, to representation in court, to the police eviction quickly, efficiently and also inexpensively. Many thanks for the valuable help.
Independence Statement: Nexova AG is an independent private fiduciary firm. We are not a government agency or authority, and we are not affiliated with any government department or official register. All official acts, registrations, and approvals are carried out solely by the competent Swiss authorities and notaries.
Read our full Independence Statement