Accounting & Financial Glossary

Chronological record of all accounting entries of the company.

The journal records each accounting transaction in chronological order. Subsidiary journals include: purchases, sales, bank, cash, and miscellaneous operations. Centralization in the general journal is mandatory.

EN: Accounting Journal / Book of Original Entry

All goods and rights owned by the company (fixed assets, inventory, receivables, cash).

Balance sheet assets are divided into fixed assets (long-term investments) and current assets (short-term items: inventory, receivables, cash). In SYSCOHADA, classes 2, 3, 4 and 5 compose the assets.

EN: Assets

Financial statement showing the company's financial position at a given date: assets, liabilities and equity.

The balance sheet is one of the 4 mandatory financial statements in SYSCOHADA (along with Income Statement, TAFIRE and Notes). It consists of Assets (what the company owns) and Liabilities (how it is financed). The fundamental equation is: Assets = Liabilities + Equity.

EN: Balance Sheet

Cash facility granted by the bank allowing a negative balance on the account.

Bank overdraft is an expensive short-term financing (high rates + overdraft commission). It should remain occasional and not become a structural way to finance working capital. In West Africa, overdraft rates are particularly high (15-20%).

EN: Bank Overdraft

Verification of the match between accounting entries and bank statements.

Bank reconciliation identifies discrepancies between accounting and bank records: issued but uncashed checks, pending transfers, unrecorded bank fees. It is an essential internal control procedure, to be performed at least monthly.

EN: Bank Reconciliation

Date in the year when revenue reaches the break-even point.

Break-even date = (Break-even revenue / Annual revenue) × 365 days. The earlier the break-even date, the more profitable the company.

EN: Break-even Date

Revenue level at which the company covers all its costs (fixed + variable) and starts generating profit.

Break-even = Fixed Costs / Contribution Margin Ratio. It is an essential management tool for SMEs to know if the business is viable.

EN: Break-even Point

Movement of cash in and out of a business over a given period.

Cash flow measures the company's actual ability to generate liquidity. We distinguish operating cash flow (current activity), investing cash flow and financing cash flow. In West Africa, cash flow monitoring is critical because access to bank credit is limited and payment cycles are long.

EN: Cash Flow

Total time between paying suppliers and collecting from customers. CCC = DSO + DIO - DPO.

The Cash Conversion Cycle (CCC) is the most comprehensive indicator of operating cash needs. A short CCC means the company quickly converts investments into cash. A negative CCC (rare) means the company is financed by its suppliers.

EN: Cash Conversion Cycle

Organized list of all accounts available to the company, classified by category.

The chart of accounts structures accounts into classes: Class 1 (Capital), Class 2 (Fixed Assets), Class 3 (Inventory), Class 4 (Third Parties), Class 5 (Cash), Class 6 (Expenses), Class 7 (Revenue), Class 8 (Special Accounts).

EN: Chart of Accounts

XML e-invoice format based on the UN/CEFACT standard, used as the basis for Factur-X.

CII is an e-invoice format developed by UN/CEFACT. It is the XML format embedded in Factur-X and ZUGFeRD. It is one of the 3 formats accepted by the PPF in France.

EN: Cross-Industry Invoice

E-invoicing model where each invoice is pre-validated by the tax authority before being sent to the customer.

The clearance model is used in UEMOA countries. Unlike the post-audit model, it requires real-time pre-validation by the DGI before issuing the invoice to the customer.

EN: Clearance Model (Real-time Validation)

Tax on profits earned by companies. Rate varies by country.

Corporate tax is calculated on taxable income (accounting result adjusted for add-backs and deductions). Rates: France 25%, Ivory Coast 25%, Senegal 30%, Benin 30%, Burkina Faso 27.5%, Niger 30%. Quarterly installments are generally required.

EN: Corporate Income Tax

Allocation of the cost of a fixed asset over its expected useful life.

Depreciation reflects the loss of value of an asset due to wear, time or obsolescence. The main methods are: straight-line, declining balance and units of production. In SYSCOHADA, depreciation is mandatory for tangible and intangible fixed assets with a limited useful life.

EN: Depreciation / Amortization

Average number of days inventory is held before being sold.

DIO is calculated as: (Average Inventory / Cost of Sales) × Number of days. A high DIO ties up cash in inventory. Optimization involves ABC analysis, just-in-time management adapted to the African context, and monitoring turnover by product category.

EN: Days Inventory Outstanding

Reduction granted for early payment, or banking operation of selling trade bills.

Trade discount is a reduction given to the customer who pays before the due date (e.g., 2% if paid within 10 days). Bank discounting involves selling a trade bill to the bank before maturity to obtain immediate liquidity, for a fee.

EN: Discount / Bill Discounting

Average number of days the company takes to pay its suppliers.

DPO is calculated as: (Accounts Payable / Purchases incl. tax) × Number of days. A high DPO may indicate good supplier negotiation, but can also signal cash flow difficulties. The goal is to balance cash preservation with maintaining good supplier relationships.

EN: Days Payable Outstanding

Mandatory annual return in OHADA countries combining financial statements and tax information.

The DSF is the equivalent of the French tax return package in OHADA countries. It includes 18 to 24 schedules and must be filed within 4 months of year-end (usually by April 30). Penalties for late or non-filing are significant. CassKai automates DSF generation.

EN: Statistical and Tax Return

Average number of days required to collect customer payments after invoice issuance.

DSO is calculated as: (Accounts Receivable / Revenue incl. tax) × Number of days. A high DSO indicates significant payment delays. In West Africa, average DSO can exceed 90 days. Reducing DSO is essential for improving cash flow. Levers include: fast invoicing, automated reminders, early payment discounts, and customer segmentation.

EN: Days Sales Outstanding

Obligation to transmit invoicing data to tax authorities for transactions not covered by e-invoicing (B2C, international).

In France, e-reporting complements B2B e-invoicing. It covers B2C sales, sales to foreign customers and payment data. Data is transmitted to the PPF.

EN: E-reporting (Tax Data Transmission)

Earnings Before Interest, Taxes, Depreciation and Amortization. Measures pure operational performance.

EBITDA is an operational performance indicator that neutralizes financing choices, taxation and depreciation policies. It is used for company comparisons and valuations (EBITDA multiples).

EN: Earnings Before Interest, Taxes, Depreciation and Amortization

Resources belonging to the company's owners: share capital, reserves and retained earnings.

Equity = Total Assets - Total Liabilities. It represents the company's net book value. In SYSCOHADA (class 1), it includes: share capital, share premiums, reserves, retained earnings and current year result. Negative equity is a serious warning.

EN: Shareholders' Equity

Transfer of accounts receivable to a financial institution (factor) in exchange for immediate payment.

Factoring provides immediate financing by transferring customer invoices to a factor, who typically advances 80-90% of the amount. The cost is higher than traditional credit but implementation is fast. It is a relevant solution for fast-growing SMEs with high working capital needs.

EN: Factoring

Hybrid e-invoice format (readable PDF + structured XML data), French-German standard compliant with EN 16931.

Factur-X is a hybrid PDF/A-3 format combining a human-readable PDF and a structured XML file. It is compliant with European standard EN 16931 and German ZUGFeRD 2.0.

EN: Factur-X (Hybrid Invoice Format)

Standardized digital file containing all accounting entries, required by French tax authorities.

The FEC has been mandatory in France since 2014 for any company keeping computerized accounts. It must be presented during a tax audit. The format is standardized (18 mandatory fields). CassKai automatically generates FEC compliant with DGFiP requirements.

EN: Standard Audit File / Accounting Entries File

12-month period over which the company prepares its annual accounts (usually January 1 to December 31).

In OHADA countries and France, the fiscal year generally matches the calendar year. A first fiscal year may exceptionally be longer or shorter than 12 months.

EN: Fiscal Year / Financial Year

Normalized electronic invoicing system of Ivory Coast via DGI, with pre-validation and fiscal seal.

The FNE is Ivory Coast's normalized invoicing system. Each invoice is sent to DGI via API for pre-validation (clearance model). After validation, a QR code and fiscal seal are applied. CassKai natively integrates with the FNE API.

EN: Normalized Electronic Invoice

European regulation on personal data protection, applicable since May 2018.

GDPR imposes strict obligations on personal data processing: explicit consent, right of access, right to erasure, data portability, breach notification. Penalties can reach 4% of global revenue. CassKai is GDPR-compliant.

EN: General Data Protection Regulation (GDPR)

Record grouping all accounting entries by account, showing the balance of each account.

The general ledger takes all journal entries, classified by account number. It shows the balance of each account at any time. It is a mandatory document in SYSCOHADA and PCG.

EN: General Ledger

Difference between revenue and the direct cost of goods or services sold.

Gross margin = Revenue - Cost of Sales. The gross margin rate is a key indicator of operational profitability. It varies significantly by sector.

EN: Gross Margin / Gross Profit

International accounting standards used in 140+ countries, mandatory for listed companies in Europe.

IFRS are issued by the IASB. They favor fair value and economic substance over legal form. Key standards include IAS 1, IAS 7, IFRS 9, IFRS 15 and IFRS 16. CassKai supports IFRS for international groups.

EN: International Financial Reporting Standards

Financial statement summarizing revenues and expenses for the fiscal year to determine net income.

The income statement measures the company's performance over a period. It shows revenues and expenses. The net result (profit or loss) is the difference. In SYSCOHADA, it includes 4 levels: operating result, financial result, extraordinary result (HAO) and net result.

EN: Income Statement / Profit & Loss

Recording of an economic transaction in accounts, following the double-entry principle.

Each journal entry includes at minimum: a date, description, one or more debited accounts and one or more credited accounts, so that total debits equal total credits. Supporting documentation must back each entry.

EN: Journal Entry / Accounting Entry

All debts and obligations of the company towards its creditors, shareholders and the state.

Liabilities include equity (shareholder contributions + accumulated results), financial debts (loans), supplier debts, tax and social debts. In SYSCOHADA, classes 1, 4 (credit side) and 5 (passive cash) compose liabilities.

EN: Liabilities

Certified electronic invoicing system of Benin, transmitting each invoice in real-time to DGI.

MECeF has been mandatory in Benin since 2020. e-MECeF is its software version. Each invoice receives a NIM (MECeF Identification Number) and QR code after DGI validation. CassKai integrates with the e-MECeF API.

EN: Certified Electronic Invoicing Machine

Difference between available cash and short-term financial debts of the company.

Net cash = Working capital - Working capital requirement. It represents the actual balance of available liquidity. Positive net cash indicates the company can meet its obligations. Negative net cash requires external financing.

EN: Net Cash Position

Organization of 17 African countries that harmonized their business law, including accounting law (SYSCOHADA).

OHADA groups 17 member states in Africa. Its Uniform Acts are directly applicable in each member country, covering commercial law, companies, accounting (SYSCOHADA), securities and more.

EN: Organization for Harmonization of Business Law in Africa

French accounting standard defining recording rules, chart of accounts and mandatory financial statements.

The PCG is governed by the French Accounting Standards Authority (ANC). The current version (PCG 2014, revised) includes 8 account classes (1 to 8). There are 3 systems: base, abbreviated and extended based on company size. PCG is used only in Metropolitan France. CassKai natively supports PCG.

EN: French General Chart of Accounts

International network for exchanging electronic invoices between businesses and public administrations.

Peppol (Pan-European Public Procurement Online) is an international network for exchanging electronic business documents. It is particularly used in Europe. Companies connect via certified Access Points.

EN: Peppol (Pan-European Public Procurement Online)

French public platform for receiving and sending B2B electronic invoices, operated by AIFE.

The PPF is the central platform of the French e-invoicing reform. Operated by AIFE, it will enable reception (mandatory Sept. 2026) and issuance of electronic invoices. Companies can also use PDPs (Partner Dematerialization Platforms).

EN: Public Invoicing Portal

Accounting charge recorded to cover a probable risk or asset impairment.

We distinguish provisions for risks and charges (litigation, warranties) and provisions for impairment (doubtful receivables, obsolete inventory). Provisions are reversible: they can be reversed if the risk disappears.

EN: Provision / Allowance

Amount of money owed to the company by a third party (customer, government, etc.).

Customer receivables are a major current asset item. Their monitoring is essential for working capital management. Aging analysis identifies at-risk receivables. In SYSCOHADA, receivables are classified in account 41 (customers) and may be subject to bad debt provisions.

EN: Account Receivable

Database security mechanism that restricts data access row by row based on the user.

RLS is a PostgreSQL feature used by CassKai via Supabase to ensure data isolation between companies. Each table has RLS policies that automatically filter by company_id.

EN: Row Level Security

Ratio measuring the profitability of an investment: (Gain - Cost) / Cost × 100.

ROI is a universal profitability indicator. A 50% ROI means that for every €100 invested, you get back €150. It is an essential decision tool for choosing between different projects.

EN: Return on Investment

Algerian accounting standard inspired by IFRS, in force since 2010.

The SCF is the mandatory accounting framework in Algeria since January 2010. Inspired by IFRS but adapted to the Algerian context, it uses a Current/Non-current classification and includes 4 financial statements.

EN: Algerian Financial Accounting System

Electronic invoicing system used in Niger, Mali and Burkina Faso for DGI invoice certification.

SECeF is the normalized invoicing system being progressively deployed in several UEMOA countries. It operates on a clearance model similar to FNE and MECeF. CassKai supports SECeF for Niger, Mali and Burkina Faso.

EN: Certified Electronic Invoicing System

Legal mission to verify annual accounts by an independent statutory auditor.

Statutory audit is mandatory for companies exceeding certain thresholds. The auditor certifies that the annual accounts give a true and fair view of the financial situation. In OHADA zone, it is mandatory for SA and SARL above certain thresholds.

EN: Statutory Audit

Harmonized accounting system applicable in the 17 OHADA member countries in Africa.

Revised SYSCOHADA (2017) is the accounting framework for 17 OHADA countries. It includes 8 account classes, 4 mandatory financial statements (Balance Sheet, Income Statement, TAFIRE, Notes) and 2 systems (normal and SMT). Covered countries include Ivory Coast, Senegal, Benin, Burkina Faso, Mali, Niger, Togo and 10 others. CassKai is the only cloud software to natively support SYSCOHADA.

EN: OHADA Accounting System

Financial Resources and Uses Table - Mandatory financial statement in SYSCOHADA, equivalent to the cash flow statement.

The TAFIRE is specific to SYSCOHADA and shows how the company financed its investments and operations during the year. It highlights working capital changes, self-financing capacity and cash flows.

EN: Statement of Sources and Uses of Funds

Document filed with tax authorities declaring taxable income and taxes due.

Tax returns include: VAT returns (monthly/quarterly), corporate tax returns, annual DSF, withholding tax returns. Deadlines vary by country. Non-compliance results in penalties.

EN: Tax Return / Tax Filing

Set of tax forms and financial statements to be filed annually with the tax authorities.

In France, the tax return package includes CERFA forms (2050 to 2059) for the normal regime, or 2033 for the simplified regime. In OHADA countries, the equivalent is the DSF.

EN: Tax Return Package

Summary table of all accounts with their debit/credit totals and balances.

The trial balance is a control tool that verifies the debit = credit equality (double-entry principle). It can be prepared at any time and serves as the basis for financial statements.

EN: Trial Balance

XML standard for electronic business documents (invoices, orders, etc.), maintained by OASIS.

UBL 2.1 is one of the 3 accepted formats for e-invoicing in France. It is a purely XML format. It is widely used in the Peppol network.

EN: Universal Business Language

Indirect consumption tax collected at each stage of the production and distribution chain.

VAT is the main indirect tax in the UEMOA zone (generally 18%, 19% in Niger) and France (20%, 10%, 5.5%, 2.1%). The company collects VAT on sales and deducts VAT on purchases. The difference is paid to the State.

EN: Value Added Tax (VAT)

Economic and monetary union of 8 West African countries sharing the CFA Franc (XOF).

WAEMU includes: Benin, Burkina Faso, Ivory Coast, Guinea-Bissau, Mali, Niger, Senegal and Togo. These countries share the CFA Franc (XOF) with a fixed rate to the Euro (1€ = 655.957 XOF).

EN: West African Economic and Monetary Union (WAEMU)

Tax deduction made directly by the payer on the amount paid to the beneficiary.

Withholding tax applies notably to dividends, interest, royalties and fees paid to non-residents. Rates vary by country and income type.

EN: Withholding Tax

Amount the company must finance to cover the gap between receipts and disbursements related to its current operations.

Working capital is calculated as: Inventory + Accounts Receivable - Accounts Payable. A positive working capital means the company needs financing to cover this gap. In West Africa, working capital is often high due to long payment delays and significant inventory management. Optimizing working capital involves reducing DSO, increasing DPO and optimizing inventory.

EN: Working Capital Requirement (WCR)