STEP 6

Accounting & ongoing compliance

Accounting is not just a formal obligation — it is the nervous system of the company. Well-kept accounting demonstrates compliance to authorities, supports the banking relationship, withstands audits, and enables decisions based on reliable information. For foreign-owned companies, it also bridges to the parent: monthly reporting must be comparable, traceable, and audit-ready.

Our service covers the full cycle: bookkeeping, reconciliations, financial statements, tax filings, document archive, and monthly executive reporting.

Authorized accounting system

Every Salvadoran company must operate under an accounting system authorized by an Authorized Public Accountant (CPA) registered with the Supervisory Board of the Public Accounting and Auditing Profession. The system defines the chart of accounts, application manual, accounting method, and functional currency, and must be in place before operations begin.

We handle the initial authorization, the updates required upon material changes (new business lines, change of method, chart adjustments), and we maintain the documentary traceability required for any future tax audit.

This obligation forms part of the commercial compliance described in section 6, along with the legalization of books, company registration, and the annual filing of financial statements. Monthly accounting is performed using the previously authorized accounting system.

1Monthly deliverables:
  • Bookkeeping under IFRS for SMEs (or full IFRS where applicable).
  • Legal books: Journal, Ledger, and Financial Statements, duly legalized.
  • Bank and key-account reconciliations (customers, suppliers, receivables, payables, taxes).
  • Financial statements: Balance Sheet and Income Statement, monthly and comparative.
  • Calculation and filing of monthly VAT, monthly advance payment, and withholdings.
  • Supporting documentation archived in chronological order.
  • Monthly executive report: close, alerts, upcoming due dates, and observations.
2Annual deliverables:
  • Auditable annual financial statements.
  • Annual ISR return.
  • Fiscal opinion when the legal thresholds are met.
Step 5