In case you didn’t understand, your ERP or whatever accounting software you are using is NOT a financial system of record. When you’re expanding overseas, especially in Latin America, your objective will be to simplify your tax reporting process, not make it more difficult, so to you, international business owners reading this article, here’s what you deal with when you have a broken process when it comes to accounting and tax reporting. Read this article fully! As always, LatamReady will give the keys to level up into the tax compliance game. So help yourself with a snack and keep on reading!
Let’s set up the decor!
Here’s a classic situation, in which you may recognize yourself by the way. Many of our Miami-based customers and other US-based international corporations that we also have in our client database are operating in Latin America and therefore own subsidiaries within this region. At the very beginning, they are performing in the following way: They initially have an ERP in the US and once they get into a new country, they start working with something different, with a local package especially built for accounting purposes within the specific country…while using their ERP in the US! Yes, guys, you’re not hallucinating…they use another accounting software in Latin America…and not even similar to the one they use back in the US!
Why on earth do many business owners have such a complicated process?
Here’s an example of one of our customers based in Fort Lauderdale: They actually decided to work with NetSuite a year ago and they have subsidiaries in Peru and Ecuador. They started to implement NetSuite for their US operations but not for their subsidiaries. Why, you may ask! Well…according to them, because of the speed..!
Indeed, they wanted something easy and fast to implement in their subsidiaries in Peru and Ecuador and this is what happened at the end: They were operating with NetSuite in the US but gathering data every month from their Latin American subsidiaries and paying local taxes using a whole different software. Come on, this is a broken process! Time and money consuming, dealing with tax compliance that way is just going to bring you to bankruptcy in the long run. Plus you may face some legal issues! Let me tell you something, if I were you, I wouldn’t trust whatever local package I find on my way.
What big international corporations need to know
To all business owners thinking that using NetSuite in Latin America requires to graduate from an Ivy League or to be a billion-dollar company… you’re 100% wrong! Our LatamReady SuiteApp is the ultimate solution to all your tax compliance problems as it includes not only e-invoicing but also e-payments, legal ledgers, and many other features for more than 14 other countries in Latin America within NetSuite. Feel free to call one of our sales rep at +1-786-600-2641 to know more! You can also find our pricing list on www.latamready.com, after that you’ll be fully on point with LatAm tax compliance using NetSuite, that’s for sure!