All you need to know about business accounting

Pay with your Mooncard card

Pay with your Mooncard payment card and the accounting engine automatically retrieves all the accounting information: expense type, allocated account, VAT, cost code, etc.
Expense tracking and automated accounting journal creation

The Mooncard software establishes an accounting journal that includes all expenses: physical or virtual payments, fuel or equipment purchases, recurring or one-time expenses.
An expense validation workflow

Thanks to the validation workflow, expenses are checked and validated as they occur. The supporting documents archived by our partner Xelians are attached to the corresponding expenses. Everything is ready for data export, with no re-entry, no errors!
Integration with all accounting software

At any time, you can generate an accounting entries file (xls or csv) that will seamlessly integrate with your accounting software, no matter which one you use (we remain by your side to address your specific requirements. An API is also available.)

Accounting cycle

The accounting cycle is the period of time over which you track of all your business-related financial transactions from the opening balance through to closing the accounts. It is a methodical process which begins when a transaction, such as a purchase, occurs, and ends when it is recorded in the company’s financial statements. It generally coincides with the company’s fiscal year.

In the simplest of terms, it involves tracking the money coming into your company and money going out of your company over this period. For both business and legal reasons, it is important to monitor transactions over the accounting cycle to ensure your company is financially sound and prepared for whatever may lie ahead.

Not only can the right information about the accounting cycle tell you whether your business is ready to finance new opportunities or whether it is time to tighten your belt and weather the storm, it also lets your clients, shareholders, investors and creditors understand your financial health and ensures you are complying with all relevant reporting obligations.

A chart of accounts (COA) is one tool that helps a business track all its financial transactions in one place over a specified accounting period. It provides a complete list of all the business’s accounts, divided into sub-categories such as cash, savings, assets, vehicles, property, insurance, etc.

Journal entries

One of the biggest mistakes any business can make is to think it can turn its attention to its accounting procedures on an occasional basis, and sometimes only at the end of the financial year. Nothing could be further from the truth! By introducing simple accounting procedures to be implemented throughout the business on a daily basis, you can avoid the end-of-year stress and plan for the year ahead with confidence.

Regardless of the size of your business, there are a few basic accounting concepts that it is essential to understand if you want to ensure it operates smoothly. Keeping an accurate journal of every transaction is a key component of this process.

In business terms, a journal is a detailed record of a company’s financial transactions. It is essential a logbook which is used to compile the accounts at the end of the fiscal year, when the information is transferred to the company’s official accounting records. In simplified terms, a journal entry records the date of the transaction, the account to which it relates, and the amounts involved.

Fiscal year

The fiscal year, or tax year, is a twelve-month period of time that companies and governments use for financial reporting. Although the fiscal year may coincide with the calendar year, in other words, it may begin on 1 January and end on 31 December, it need not necessarily be the case. For example, schools and universities often use a financial year which corresponds to the school year, beginning in September, while other companies may choose different start dates depending on their own financial cycles.

Balance sheet

A balance sheet is a document which reports information on a company’s financial situation, it’s assets and liabilities at a specified time. This is the most basic accounting document which provides the owner, investors, shareholders, regulators and clients with a snapshot of the financial health of the company. Used alongside other key financial documents, the balance sheet is key to undertaking a thorough financial analysis.

Types of accounting

The rules which a company follows when recording and reporting its income and expenditure is known as the “accounting method”. There are two main accounting methods: cash accounting and accrual accounting.

Cash accounting involves recording revenue and expenditure as and when they are received and paid, while accrual accounting records revenue and expenditure when they occur. Governments may require business of a certain size or in a certain sector to report their financial transactions according to a specific accounting method.

Financial statement analysis

The term “financial statement analysis” refers to the practice of analysing a business’s financial statements in order to make decisions about its future. Within a company, this analysis is used to identify potential strengths and weaknesses, and to inform decision-makers about potential threats and opportunities. For external stakeholders such as clients and investors, financial statement analysis helps them get a clear picture of the financial health of the company.

Accounting software

Accounting software is an invaluable tool for modern businesses of any size. It is essentially a computer programme which helps record and track a company’s financial transactions and meet its accounting obligations. The types of functions that a piece of accounting software can provide vary widely. In general, the aim is to make it easier for businesses to understand and analyse their financial records. It can save huge amounts of time and resources and when used correctly can provide accurate information for internal and external audits.

Keeping the company accounts is a major issue for company directors. They have the choice to either do keep the accounts in-house or to outsource some or all of the tasks to an accounting firm.

To simplify in-house record keeping, it is strongly recommended to use accounting software.

Several things should be taken into account when deciding between the two options:

The duration of the mission;
In-house resources and skills;
Cost

How can Mooncard help you manage your accounts?

Mooncard simplifies the management of company expenditure, from paying bills through to keeping the accounts in order. Our solution allows you to track expenditure in real time. With just a few clicks, you can access comprehensive reports, analyse amounts, and adjust your budgets. You will have total control over the expenses incurred by your employees. Written accounts are generated automatically, as is the recovery of VAT, depending on your chart of accounts and the configuration of your software.

All about accounting in business