When you’re operating in Latin America, here’s the first question that should come to your mind: How can I do accounting and tax reporting easily and successfully?
Today’s topic: multi-booking! You probably heard of multi-booking before but you have no clue about how to deal with it and make your subsidiaries successful in the long run. What do we recommend to international corporations expanding to Latin American countries including Brazil? Keep scrolling down to find out how!
Jumping between primary and secondary books
Our first recommendation is to send all your primary accounting books using the US GAAP or corporate chart of accounts for all countries you operate, always in dollars of course, and then your secondary accounting book using the local or statutory chart of accounts in the base currency of the country. With this process, you can have corporate consolidation using the US GAAP in the primary accounting book, and the local chart of accounts in the secondary book with the base currency.
What is my benefit in doing this?
You’ll be combining local requirements with corporate requirements.
The visibility of the corporation is key here. However, another scenario will be a whole new NetSuite implementation for a global corporation arriving in Latin America. There’s actually a mapping between the global chart of accounts and the statutory or the Brazilian account.
Multi-booking, mapping… tell me more!
Indeed, the relationship is one to one. You need to have one US GAAP account associated with a local account. This mapping includes multi-booking so that NetSuite can send reports from the correct local account to the secondary accounting book. The mapping of multi-booking is very different from the specific mapping used for reporting purposes.
I don’t really see the point, can you give me an example?
Let’s take the case of Mexico! NetSuite has standard features in order to have a statutory chart of accounts only for mapping and reporting purposes. This way electronic accounting files can be released on a monthly basis. This is very similar to Brazil where you can have your primary accounting book in dollars using US GAAP, the secondary one with a Brazilian account number, or just the US GAAP in Reales. However, in the mapping for reporting purposes, you can assign a specific code or account number for Brazil.
What should I do then in order to send reliable reports easily and quickly?
Our LatamReady SuiteApp is the ultimate solution to all your tax compliance problems as it includes e-invoicing, e-payments, legal ledgers, and many other features for more than 14 other countries in Latin America within NetSuite. With our secret weapon, you’ll definitely be able to send reports within any local Latin American currency and tax reporting won’t be a problem for you anymore, thanks to LatamReady!
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!