An Overview into Chart of Accounts!

Hear our experts talk about the topic here: https://tinyurl.com/y2u87a4c

Chart of accounts is something we hear a lot about, and it usually depends on different opinions from different clients depending on their size, and where they come from. But, what is charts of accounts?

It’s an accounting concept. If you have an accounting ERP, you need to use accounts , these are codes and names. You can have a corporate list of accounts or a local list of accounts, and this last one is normally regulated and mandatory by tax authorities.

Tax authorities design the number, correct structure, name, type, hierarchy, etc. For example, in the case of Colombia and Peru, you have a statutory chart of accounts. It means that the company, in these kind of countries, has to use that specific account for audit purposes. You will need to present all your accounting using this official format.    

In the case of Brazil and Argentina, it depends where you configure NetSuite for your corporation. There we can find different scenarios.

The first scenario is going to be a Brazilian company implementing NetSuite, there you can choose to have multi booking feature or not, in order to have multiple accounting principles in the same instance.

The second one is implementing NetSuite for a Brazilian company working locally, in that case, you can upload your chart of accounts for Brazil using that legal name and number. You can have the statutory chart of accounts according to the tax authority without needing the multi booking.

For more information about how can you deal with chart of accounts in just one click, visit:

https://www.latamready.com/

Or if you want to learn more about different concepts involved in the tax compliance world, visit:

https://www.latamzone.info/

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