Lexicon

Definition: A tax allowance is a flat-rate or proportional deduction applied to a taxable base, thus reducing the amount of income subject to tax.

At WeMa: We identify the tax allowances for which you are eligible to optimize your tax situation (exemptions, special regimes…).

Example: An executive can benefit from a 40% allowance on dividends received.

See also: [Taxation], [Taxable income], [Tax return].

Definition: Fixed assets are durable goods used by a company for its business activities, such as buildings, patents or financial holdings.

At WeMa: We can help you manage and value your fixed assets.

FAQ : What’s the difference between fixed and current assets?

Fixed assets are held on a long-term basis, while current assets are intended to be used or transformed quickly (inventories, receivables, etc.).

See also: [Balance sheet], [Fixed assets table].

Definition: Depreciation is an accounting mechanism used to spread the cost of a fixed asset over its expected useful life.

At WeMa: We optimize your depreciation schedules to accurately reflect the consumption of your assets.

Example: A company car costing €30,000 can be depreciated over 5 years, at €6,000/year.

See also: [Depreciation allowance], [Depreciation schedule].

Definition : A legal announcement is an official publication, mandatory for certain legal procedures (company creation, modification of articles of association, dissolution…).

At WeMa : We draft and publish your legal announcements in authorized newspapers, in accordance with current requirements.

FAQ : When should a legal announcement be published?

When a company is created, when the manager or registered office is changed, or during liquidation.

See also : [Extrait de Kbis], [Tribunal de commerce].

Definition: A business introducer is a person (or company) who puts a professional in touch with a potential customer, in exchange for a fee or commission.

At WeMa: We can help you secure your contracts with business introducers.

Example: A freelance consultant earns 5% commission for each customer he refers to a service provider.

See also: [Service contract], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations], [Obligations].

Definition: The AGM is the annual meeting of associates or shareholders to approve the financial statements, decide on the allocation of earnings and renew corporate mandates.

At WeMa: We prepare the mandatory documents and minutes for your AGMs.

FAQ : When should an AGM be held?

Within six months of the end of the financial year.

See also: [Annual accounts], [Management report], [Minutes]

Definition: A statutory audit is a regulated assignment carried out by a statutory auditor, the purpose of which is to certify the regularity, fairness and accuracy of a company’s annual financial statements.

At WeMa: Our teams provide rigorous, independent legal audits, guaranteeing financial transparency and the confidence of third parties (banks, investors, partners).

Example: A company exceeding certain thresholds (sales, headcount, balance sheet total) must have its accounts certified.

See also: [Statutory audit], [Accounting audit], [Financial statements].

Definition: The balance sheet shows, at a given point in time, what the company owns (assets) and what it owes (liabilities). It reflects the company’s financial health.

At WeMa: We produce and analyze your balance sheets to guide your strategic decisions.

Example: A balance sheet at 12/31/2024 shows available cash of €40,000 and trade payables of €25,000.

See also: [Liabilities], [Income statement], [Shareholders’ equity].

Definition: The financial balance sheet is a reading of the accounting balance sheet, focusing on the company’s repayment capacity and financial structure.

At WeMa: We help you assess your solvency, financial autonomy and working capital requirements.

Example: A financial balance sheet distinguishes between short-term and long-term debts to assess liquidity.

See also: [Working capital], [Shareholders’ equity], [Liabilities].

Definition: A budget forecast is an anticipated management tool that projects revenues, expenses and earnings over a given period.

At WeMa: We help you build realistic budgets that are adapted to your objectives and your financing needs.

Example: A start-up forecasts sales of €150,000 in the 1st year, with expenses of €100,000.

See also: [Business plan], [Forecasting]

Definition: A business plan is a structured document outlining a business project (objectives, market, strategy, financial forecasts).

At WeMa: We help you build a convincing business plan to attract investors or bankers.

FAQ : What’s the difference between a business plan and a forecast?

The business plan includes the forecast, but also the market analysis, the strategy and the organization.

See also: [Financing plan], [Budget forecast].

Definition: Share capital represents the contributions made by shareholders at the formation of a company. It is expressed in cash or in kind, and appears on the liabilities side of the balance sheet.

At WeMa: We advise you on the amount and structure of capital when creating or increasing capital.

FAQ : Is share capital mandatory?

Yes, except for sole proprietorships. Minimum amount depends on legal status.

See also: [SAS], [SARL], [Capitaux propres] [Shareholders’ equity

Definition: Shareholders’ equity corresponds to the stable resources belonging to the company: share capital, reserves, earnings, etc.

At WeMa: We analyze your shareholders’ equity to ensure financial soundness and compliance with legal thresholds.

Example: If shareholders’ equity falls below half of capital, an alert procedure is triggered.

See also: [Share capital], [Balance sheet], [Legal reserves].

Definition: Transfer of a company or its shares to a third party, in the context of a sale, transmission or merger.

At WeMa: We work upstream to secure, enhance and structure your disposal projects.

FAQ : What elements determine the value of a company?

Profitability, goodwill, clientele, patents, market position, etc.

See also: [Inventory valuation], [Due diligence].

Definition: The year-end closing marks the end of an accounting period. The annual financial statements are drawn up and approved.

At WeMa: We draw up your annual accounts, prepare the general meeting and file the documents with the Registrar.

FAQ: Can I change my closing date?

Yes, under certain conditions and with coherent justification (seasonal activity, strategic change, etc.).

See also: [Financial statements], [AGO], [Tax returns].

Definition: Management commentaries are explanatory notes written by the manager or the chartered accountant to accompany the financial results and help interpret them.

At WeMa: We deliver a tailor-made commentary with each closing to inform your strategic decisions.

Example: “The drop in sales in Q3 is explained by a temporary slowdown in production linked to recruitment.“

See also: [Management report], [Accounting review], [Financial analysis].

Definition: Statutory auditing is the activity of the professional legally empowered to certify a company’s accounts.

At WeMa: Our statutory auditors operate with rigor and independence, in compliance with the French Commercial Code.

Example: A SAS with sales in excess of €8 million must appoint a statutory auditor.

See also: [Legal audit], [Directly related due diligence].

Definition: As an internal management tool, cost accounting enables you to allocate expenses according to cost centers (product, service, customer…).

At WeMa: We design cost accounting schemes adapted to your structure.

FAQ : Why implement cost accounting?

To know the real profitability of each activity or product, and optimize strategic decisions.

See also: [Controlling], [Costing]

Definition: The income statement lists all income and expenses over a given period, to determine the profit or loss for the year.

At WeMa: We analyze your income statement to identify levers for margin improvement.

Example: If a company has sales of €300,000 and expenses of €250,000, its result is a profit of €50,000.

See also: [Gross margin], [Taxable income], [Overheads].

Definition: A set of tools and methods for monitoring strategy execution through the tracking of financial indicators.

At WeMa: We help SMEs and SMBs structure their monthly reporting.

Example: Setting up a dashboard comparing monthly margin targets with actual results.

See also: [Budget forecasting], [Cost accounting].

Definition: Cost of goods sold is the total cost incurred to produce a good or service, from the purchase of materials to delivery.

At WeMa: We can help you calculate your cost of goods sold to improve your margins and profitability.

Example: If manufacturing a product costs €12 in raw materials, €5 in labor and €3 in fixed costs, its cost of goods sold is €20.

See also: [Gross margin], [Cost accounting].

Definition: Leasing is a form of rental with a purchase option, enabling a company to use an asset without buying it immediately.

At WeMa: We advise you on the best form of financing for your investment projects.

FAQ : Is leasing accounted for as a purchase?

No, except in specific IFRS cases. It remains an expense until the purchase option is exercised.

See also: [Financing plan], [Initial investment].

Definition: Set of documents sent to the authorities to declare income, expenses and taxes due by the company.

At WeMa: We ensure reliable, secure and tax-optimized declarations.

Example: Monthly VAT return, income tax return (liasse fiscale), etc.

See also: [Income tax return], [Taxation].

Definition: These are services that a statutory auditor can provide in addition to his statutory mission, without compromising his independence (attestations, advice…).

At WeMa: Our statutory auditors are also involved in DDL, such as the validation of a business plan or a grant.

FAQ : Can DDLs be invoiced?

Yes, but they must remain within the ethical rules of the profession.

See also: [Commissariat aux comptes], [Audit légal]

Definition: Fictitious dividends are distributions of profits when the actual accounting results do not allow for them. They are illegal and may result in sanctions.

At WeMa: We secure distribution calculations to avoid any errors or legal risks.

Example: Distributing dividends without having approved the accounts or allocated previous losses is considered fictitious.

See also: [Shareholders’ equity], [AGM].

Definition: The depreciation charge is an accounting charge recognizing the loss in value of a fixed asset over its useful life.

At WeMa: We calculate and optimize your depreciation charges according to tax and accounting depreciation periods.

Example: A €30,000 machine depreciated over 5 years generates an annual depreciation charge of €6,000.

See also: [Depreciation], [Fixed assets]

Definition: In-depth audit carried out before buying or investing in a company, to assess risks and opportunities.

At WeMa: Our teams conduct financial, tax, labor and legal due diligence.

FAQ : Why carry out due diligence?

To secure the investment decision and assess the true value of the target company.

See also: [Contractual audit], [Sale of a company].

Definition: An accounting entry is a transaction recorded in the accounting books, comprising at least a debit, a credit and a supporting document.

At WeMa: We automate and make reliable the entry of your entries thanks to connected tools and expert revision.

FAQ : Does a piece of writing always have to be balanced?

Yes. Total debits must equal total credits.

See also: [Accounting journal], [Bookkeeping].

Definition: All the summary documents produced at the end of a financial year: balance sheet, income statement, notes.

At WeMa: We ensure that your financial statements comply with current accounting standards.

FAQ : What is the purpose of financial statements?

To provide information on a company’s performance, situation and financial structure.

See also: [Annual financial statements], [Liasse fiscale], [Tax returns].

Definition: Chartered accountancy covers all the tasks entrusted to a chartered accountant registered with the Ordre: accounting, taxation, management, consulting.

At WeMa: We offer local, responsive, human and digital support.

Example: A business owner can entrust WeMa with his bookkeeping, pay slips and tax returns.

See also: [Bookkeeping], [Business consulting]

Definition: The Kbis is the official document certifying the legal existence of a commercial company. It is issued by the commercial court clerk’s office.

At WeMa: We can help you with all your company registration and modification procedures.

FAQ: How long is a Kbis valid?

It is generally required to be less than 3 months old for administrative or banking purposes.

See also: [Legal notice], [Commercial court].

Definition: Taxation covers all the rules, laws and obligations relating to taxes and contributions to which taxpayers are subject.

At WeMa: We provide comprehensive tax support: tax returns, optimization, audit management, anticipation.

Example: A company is subject to corporation tax (IS), VAT, CVAE and sometimes property tax.

See also: [Tax return], [Taxable income], [Tax adjustment].

Definition: All taxes, contributions and levies to which companies are subject (VAT, corporate income tax, CVAE, etc.).

At WeMa: We work with you to build a compliant, optimized tax strategy.

Example: An SAS subject to corporate income tax (IS) at 25% in 2025.

See also: [Impôts différés], [Déclaration fiscale], [Redressement fiscal].

Definition: Working capital is the difference between stable resources (shareholders’ equity, long-term debt) and stable uses (fixed assets). It is used to finance current operations.

At WeMa: We calculate and analyze your working capital to identify your cash flow needs or financing surpluses.

Example: Positive working capital guarantees that the company can meet its current expenses.

See also: [Balance sheet], [Cash flow], [Forecasting].

Definition: Overheads include all indirect costs associated with running a business (rent, electricity, subscriptions, etc.).

At WeMa: We help you analyze your overheads to improve your margins and reduce unnecessary expenses.

Example: Unused software subscriptions can inflate your fixed costs.

See also: [Income statement], [Cost of goods sold]

Definition: Strategic operation consisting in absorbing, merging or buying out another entity.

At WeMa: We support SMEs and groups in their external growth strategies.

FAQ : What are the stages in a merger & acquisition?

Identification, valuation, due diligence, negotiation, structuring, contractualization.

See also: [Due diligence], [Company sale].

Definition: Strategic operation consisting in absorbing, merging or buying out another entity.

At WeMa: We support SMEs and groups in their external growth strategies.

FAQ : What are the stages in a merger & acquisition?

Identification, valuation, due diligence, negotiation, structuring, contractualization.

See also: [Due diligence], [Business transfer].

Definition: The Registrar’s Office is the administrative body responsible for keeping the Trade and Companies Register (RCS), and for receiving legal documents.

At WeMa: We can take care of the filing of accounts, changes and registration formalities with the Registrar’s Office on your behalf.

FAQ : What is the role of the Registrar’s Office?

It registers legal documents, issues the Kbis and manages collective procedures.

See also: [Extrait de Kbis], [Annonce légale]

Definition: Deferred taxes are temporary differences between accounting and taxable income, giving rise to a tax expense or income recognized in advance or in arrears.

At WeMa: We process these differences in your financial statements to comply with regulatory requirements.

FAQ : When is a deferred tax recognized?

When tax depreciation is faster than accounting depreciation, for example.

See also: [Taxation], [Taxable income]

Definition: Total amount committed to launching a project or acquiring a durable asset (equipment, building, software, etc.).

At WeMa: We model your investments and their impact on your cash flow and profitability.

Example: A restaurant investing €100,000 in kitchen fittings and equipment.

See also: [Financing plan], [Opportunity cost].

Definition: The accounting journal is a mandatory document in which all accounting entries are recorded chronologically.

At WeMa: We keep your accounting journals in compliance with legal obligations and the chart of accounts.

FAQ: What types of journals are there?

Sales journal, purchase journal, bank journal, OD journal (miscellaneous operations).

See also: [Accounting entries], [Bookkeeping].

Definition: A file containing mandatory accounting and tax statements, sent to the tax authorities at the end of the financial year.

At WeMa: We produce your tax return and ensure its secure electronic transmission.

FAQ: When should you file your tax return?

Within 3 months of the end of the financial year for companies subject to corporate income tax.

See also: [Financial statements], [Income tax return].

Definition: Legal books include all the mandatory registers that a company is required to keep: accounting books, registers of meetings, register of share movements, etc.

At WeMa: We can help you keep and preserve your legal documents.

FAQ : What are the penalties for failure to keep legal books?

These can include fines and criminal liability for the director.

See also: [Minutes], [AGO], [Annual accounts]

Definition: Accounting software is used to enter, process and manage a company’s accounting entries.

At WeMa: We offer intuitive cloud-based tools, synchronized with your banks and receipts.

Example: Software automates the entry of supplier invoices by importing them in PDF format.

See also: [Bookkeeping], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry], [Accounting entry].

Definition: This is the difference between sales and the purchase cost of goods or raw materials sold.

At WeMa: We help you calculate and track your gross margin for each product or service.

Example: A company sells a good for €100 with a purchase cost of €60 → gross margin = €40.

See also: [Income statement], [Cost of goods sold]

Definition: Also known as “operating margin”, it corresponds to the profit generated by a company’s main activity before financial and exceptional expenses.

At WeMa: We analyze your activity margins by segment to fine-tune your sales management.

FAQ: Why monitor your operating margin?

To identify the activities that are really profitable, and arbitrate your resources.

See also: [Controlling], [Cost accounting]

Definition: In finance, a bond is a debt security representing a medium- or long-term debt. In law, it is also a legal or contractual obligation.

At WeMa: We can help you issue, underwrite or manage your financial and legal obligations.

FAQ: Can an SME issue bonds?

Yes, within a specific legal framework (notably via a PACTE or a platform).

See also: [Liabilities], [Share capital].

Definition: Liabilities represent what the company owes: debts, loans, suppliers, salaries to be paid, etc.

At WeMa: We monitor the evolution of your liabilities to ensure your financial equilibrium.

Example: Liabilities include a bank loan of €50,000, supplier debts of €12,000, etc.

See also: [Balance sheet], [Shareholders’ equity].

Definition: Interval of time over which a company records its operations and closes its accounts (often 12 months).

At WeMa: We adapt the accounting period to your needs (staggered fiscal year, seasonal variations, etc.).

FAQ : Is it possible to have an accounting period shorter than 12 months?

Yes, especially for the first financial year or a change of financial year.

See also: [Annual accounts], [Annual accounts], [Annual accounts].

Definition: The French General Chart of Accounts (PCG) is a mandatory reference for all French companies, defining the rules for organizing accounting and the list of accounts to be used.

At WeMa: We apply the rules of the PCG to your entries, according to your sector of activity.

Example: Account 606 “Non-stock purchases of materials and supplies” is taken from the PCG.

See also: [Accounting entry], [Accounting journal].

Definition: A tool for identifying a project’s financial needs and the resources mobilized to cover them.

At WeMa: We help you structure a realistic plan that is understood and accepted by your financial partners.

Example: €100,000 equipment purchase financed 60% by bank loan, 30% by equity, 10% by grant.

See also: [Business plan], [Initial investment]

Definition: SMEs are companies with fewer than 250 employees, sales ≤ 50 M€ or balance sheet total ≤ 43 M€.

At WeMa: We specialize in supporting SMEs in all aspects: accounting, tax, social and strategic.

FAQ: Can an SME be listed on the stock exchange?

Yes, but it must comply with certain specific obligations.

See also: [Accountancy], [Business consulting]

Definition: System for collecting tax directly from income, introduced in France in 2019.

At WeMa: We integrate withholding tax into the management of your payslips and DSNs.

Example: An employee receives a gross salary of €2,500, with withholding tax of €180.

See also: [Tax return]

Definition: Written document recording decisions taken at a shareholders’ meeting (AGM, EGM, Board of Directors, etc.). It is often required to justify legal changes.

At WeMa: We draw up your minutes in compliance with your legal obligations.

FAQ: Do the minutes have to be filed with the clerk’s office?

Yes, in certain cases (modification of articles of association, approval of accounts, etc.).

See also: [General meeting], [Legal books].

Definition: Amount booked to anticipate a probable expense or an identified but as yet unrealized risk (litigation, warranty, tax reassessment, etc.).

At WeMa: We assess your risks and book the necessary provisions in your accounts.

Example: A provision of €15,000 is booked for an ongoing industrial tribunal dispute.

See also: [Amortization], [Liabilities], [Depreciation].

Definition: Document drafted by management that presents the company’s activity, financial situation, risks and outlook.

At WeMa: We help you draft your management report in accordance with legal and shareholder requirements.

FAQ : Is it mandatory?

Yes, for SAs, SASs, and certain SARLs depending on their size.

See also: [Management comments], [AGO].

Definition: Procedure by which the authorities rectify items declared by a company, resulting in a tax adjustment.

At WeMa: We defend you in the event of an audit or tax adjustment, and anticipate the risks.

Example: A VAT adjustment may be imposed as a result of an incorrect accounting assignment.

See also: [Taxation], [Tax return].

Definition: Share of profit (5%) that certain companies must allocate to a reserve until it reaches 10% of share capital.

At WeMa: We manage the allocation of profits to meet your legal obligations.

FAQ : When is the legal reserve mandatory?

As soon as the company makes a profit distribution.

See also: [Shareholders’ equity], [Fictitious dividends].

Definition: Income used to calculate tax, after accounting restatements (reintegrations, tax deductions, etc.).

At WeMa: We optimize your taxable income to limit the tax burden while complying with tax rules.

Example: An accounting income of €80,000 can give a taxable income of €90,000 after reintegrating non-deductible depreciation.

See also: [Deferred taxes], [Income tax return].

Definition: The stage of checking and analysing accounting entries before the annual accounts are drawn up.

At WeMa: Our experts carry out a rigorous review of your accounts to guarantee their reliability.

FAQ: Is it compulsory?

Not legally required, but essential to produce reliable accounts.

See also: [Bookkeeping], [Financial statements]

Definition: The SA is a joint-stock company reserved for large-scale projects, with at least 2 shareholders (or 7 if listed) and a minimum share capital of €37,000. It is often used for large companies.

At WeMa: We help public limited companies meet their obligations (statutory auditors, board of directors, management report, etc.).

FAQ: Is a public limited company required to be listed on the stock exchange?

Yes, with the exception of the “European Company” form.

See also: [Statutory auditors], [General meeting].

Definition: The SARL is a commercial company made up of 2 to 100 associates, with liability limited to the amount of their contributions. It is ideal for family projects or stable partnerships.

At WeMa: We advise you on the creation, management and taxation of your SARL, particularly in the case of majority or minority management.

FAQ : Can I set up a limited liability company on my own?

Yes, in this case it’s called an EURL (Entreprise Unipersonnelle à Responsabilité Limitée).

See also: [Share capital], [Minutes], [SME].

Definition: The SAS is a flexible, adaptable form of company, popular with start-ups and SMEs. Operating rules are freely defined in the articles of association.

At WeMa: We help you structure your SAS bylaws to anticipate shareholder rights and governance.

Example: A SAS can have a single shareholder (SASU) or several, with or without a Board.

See also: [Share capital], [Withholding tax].

Definition: Hybrid between a partnership and a limited company. It comprises limited partners (shareholders) and general partners (managers liable for their personal assets).

At WeMa: We structure SCAs for specific projects, particularly business transfers.

FAQ : What’s the advantage of an SCA?

Clearly distinguishing management powers from financial interests, useful in some family groups.

See also: [SA], [Corporate Governance].

Definition: A variant of the SCA, but without shareholders. It brings together general partners (managers) and limited partners (capital contributors), without issuing shares.

At WeMa: We can advise you on the tax and wealth implications of this unusual form.

FAQ : Are sponsors liable?

No, their liability is limited to their contributions.

See also: [Share capital], [Partners’ liability].

Definition: The SCI is a non-trading company dedicated to the management of real estate assets. It facilitates the transfer, collective ownership and management of real estate.

At WeMa: We support the creation of SCIs for individuals or professionals, with a particular focus on taxation (IR, IS).

FAQ : Is it possible to rent furnished accommodation through an SCI?

Yes, but this often means that the company is subject to corporate income tax.

See also: [Taxation], [Inventory valuation].

Definition: The SEL allows liberal professionals (chartered accountants, doctors, lawyers, etc.) to operate as a company, while respecting the rules of professional ethics.

At WeMa: We understand the specific tax and social aspects of SELs, and can advise you on how to structure them (SELARL, SELAS….).

FAQ : What’s the difference between an SEL and a conventional company?

An SEL is subject to specific regulations depending on the profession practiced.

See also: [Liberal accounting], [Bookkeeping].

Definition: Partnership in which all partners are indefinitely and jointly and severally liable for the company’s debts. Little used today because of this liability.

At WeMa: We inform you of the risks and accounting constraints associated with this structure.

FAQ : Why choose an SNC?

For projects where there is total trust between partners, often as a family.

See also: [Liabilities], [Share capital].

Definition: Bookkeeping refers to the chronological recording of all a company’s accounting transactions.

At WeMa: We offer 100% paperless, seamless and compliant bookkeeping.

FAQ : What’s the difference between bookkeeping and auditing?

Bookkeeping involves recording documents. Auditing is the control and analysis of these entries.

See also: [Accounting entry], [Accounting software].