For NetSuite-using companies developing their chart of accounts for each of their subsidiaries in Latin America doesn’t represent a big challenge. Would you like to know why? Find out what is their “ace up their sleeve” in this blog.
Here’s a hint: it combines the capabilities of NetSuite with the power of a Native SuiteApp.
What is the “Chart of accounts”?
Chart of accounts (COA) is a concept used to refer to an index of all the financial accounts in the legal ledgers of a company.
It works as an financial and organizational tool that provides a digestible and complete breakdown of all the financial transactions conducted by the company during a specific accounting period, broken down into subcategories.
What is the usage of a chart of accounts?
In simple words: high level of organization.
Charts of accounts are used to organize finances and, in this way, be able to give interested parties (investors and shareholders) a clearer insight into a company’s financial health.
Each chart of accounts usually contains 4 parts:
But in Latin America, this is different…
How does the “Chart of accounts” work in Latin America?
Developing a chart of accounts for a business in Latin America could be challenging. Local tax authorities have designed a specific structure, names, types and more for each country and its specific needs.
For example, for Mexico and Peru, you have a legal chart of accounts which means that the companies in those countries have to use that specific account for legal purposes. For that, it’s necessary to present all your accounting using this official format.
The case of Brazil and Colombia is different as well. The development of a chart of accounts depends on many factors such as the type of configuration that the company has. In this case, it’s possible to find two different scenarios.
And this continues to vary from country to country (In addition to the corporate chart of accounts you already use, such as US GAAP).
What would be our advice for NetSuite-using companies to face this challenge? To make this process easier for your headquarters and subsidiaries in Latin America, your best option is to have a solution inside the Oracle NetSuite ERP that helps to make all these tedious and complicated processes much simpler within the NetSuite system.
How will the LatamReady SuiteApp help you with this challenge?
Thanks to the Multibooking capability from NetSuite combined with the powerful functionalities from the LatamReady SuiteApp, NetSuite-using companies operating in Latin America (or looking to expand into this region) will solve this challenge.
These two solutions will allow companies to operate in each country in compliance with local regulations and, at the same time, to operate corporately following international requirements, all from one place, Oracle NetSuite Cloud ERP, allowing them to have full visibility of the corporation!
The LatamReady SuiteApp is an excellent Tax Compliance solution in the Latin American region that works within NetSuite providing the best tools with the ultimate solutions to all international corporations experiencing problems with tax calculation, tax determination, tax rules, E-invoicing, E-payments, Legal Ledgers, and many other issues.
So, now we know that…
- Chart of accounts is a tool to organize all the financial accounts in the legal ledgers of a company.
- Charts of accounts are different in each Latin American country because it’s adjusted to their specific needs and rules.
- For NetSuite-using companies, this challenge can be solved thanks to the combination of the Multibooking capability from NetSuite and the powerful functionalities from the LatamReady SuiteApp.
- The LatamReady SuiteApp is a Built-for-NetSuite service that extends the power of NetSuite by facilitating full tax compliance for more than 18 countries in Latin America.
How does the LatamReady SuiteApp power up Oracle NetSuite?
We are the #1 Oracle NetSuite partner in Latin America that, through the best ERP worldwide, will help you adapt to changes and grow your business.
Why should you choose us? Find out here.
Become a NetSuite expert with the LatamReady SuiteApp in our LatamDojo!
We want YOU to become the expert! That’s why we have a surprise: an e-learning platform (for our customers only) known as LatamDojo.
But… What is LatamDojo? What does it offer? Why should I use it? Here are the answers!
Chart a bold new path by adopting modern solutions for tax compliance challenges in Latin America with the LatamReady SuiteApp.