When opening subsidiaries in Latin America, you need to be aware of specific aspects of tax compliance that can be challenging sometimes. You probably heard of ‘Global Chart of Accounts’, multi-booking or even legal ledgers and you have no clue about how to deal with them and make your subsidiaries successful in the long run? Then keep scrolling down to find out how!
The main benefits of using Global Charts of Accounts :
The most part of our customers is using global chart of accounts, which are financial tools that provide a complete listing of every accounting data. This set is an excellent way to record several kinds of transactions such . Indeed, many American customers owning subsidiaries in Latin American countries such as Argentina use these chart of accounts in US dollars, within NetSuite and following American GAAP rules, such as the specific currency principle, the matching principle, or even the principle of conservative accounting.
Multi-booking you said? Tell me more! :
With our LatamReady SuiteApp, we have the ability to jump to the secondary book to produce the legal local Argentinian book based on the local accounting rules. Moreover, some customers are using multi-booking, which is a feature available within NetSuite that provides the ability to maintain multiple sets of accounting records and languages based on a single set of real-time financial transactions. In other terms, this tool allows owners in subsidiaries in Latin America to use the local book as their primary one. Furthermore, they have the opportunity to work on a book of a specific country while it simultaneously fills up for the other ones (in real-time), taking into account the different local requirements and accounting languages.
How to be on time with legal ledgers in Argentina :
The legal Argentinian books are changing and evolving a couple of times during the year and especially at the end of the year in order to have the annual tax declaration for the year to come. Moreover, the important thing to consider when opening subsidiaries in Argentina is that the legal ledgers, which are the books containing the details of local customers, have to be produced monthly, quarterly in a specific TXT file, and annually.
Thankfully, the LatamReady SuiteApp is the solution to all your tax compliance problems as it includes legal ledgers not only for Argentina but also for Brazil, Mexico and more than 11 other countries within the Latin American space. Feel free to call one of our sales rep at +1-786-600-2641 to know more!