How to manage “Chart of accounts” in Latin America within NetSuite?
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 Solution.
↓ Keep reading ↓
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 a 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 its usage?
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:
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.
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.
Thanks to the Multibooking capability from NetSuite combined with the powerful functionalities from the LatamReady App, NetSuite-using companies operating in Latin America will solve this challenge.
These two solutions will allow companies to operate in each country in compliance with local regulations, all from one place, Oracle NetSuite Cloud ERP, allowing them to have full visibility of the corporation!