Based on our extensive experience in conducting internal audits on behalf of Japanese companies in Bangladesh, this series provides basic knowledge that may be useful for those in charge of conducting internal audits in Bangladesh (internal auditors and auditors, management posted to Bangladesh, global management at headquarters, and external auditors who need to conduct site visits as part of a group audit).The third session will introduce basic knowledge that may be useful for auditors who need to visit Bangladesh offices as part of group audits.
In the third part of the series, we will discuss accounting software and bookkeeping language.
Accounting Software
As of April 2025, the accounting software used in Bangladesh includes the following
- Local companies (small, medium and local) mostly use Tally or local products (e.g. Southtech)
- Foreign companies, including Japanese companies, use QuickBooks, Xero, SAP, and Oracle (but it is important to confirm that the software meets Bangladesh’s unique taxation system, including support for VAT, withholding tax, E-TIN, and e-return)
- Smaller companies often perform manual accounting using Excel or Access.
<Note
In Bangladesh, it is especially important to ensure that the VAT reporting functionality is NBR certified or compatible with NBR specifications.Many local companies use Tally or Southtech products customized to their operations.
Cloud-based software (QuickBooks, Xero, etc.) is highly consistent with international accounting standards, but requires some customization for local systems such as VAT.
<Categorization by purpose and situation
Foreign affiliated, IFRS, mainly cloud based, QuickBooks or XeroCost management is important for manufacturing companiesSAP B1 or PrismERPWant to start with basic management with low initial costAccord AccountsNGO that needs donor reportingSouthtechEasyAccountsRetail/Inventory linkage, low cost TallyPrime
＜By use and functionality
VAT (Value Added Tax)-compliant TallyPrime (with VAT module) 🔹 PrismERPNBR (tax authorities) e-return format can also be supportedIntegrated with inventory managementSAP B1 🔹 TallyPrime 🔹 Accord AccountsIntegrated inventory, sales and cost management.Required for manufacturers and retailersSupports government project reportingSouthtech EasyAccountsFulfills government/donor financial reporting requirementsModel cloud use (multi-site, international access)QuickBooks Online 🔹 Xero 🔹 ZohoBooksIntegration with overseas headquarters andSAP B1 for departmental and project-based accounting with strong access while traveling 🔹 QuickBooks Class functionality for activity-based profit and loss tracking, common in the NGO and construction industries 🔹 TallyPrime (local extension) for full compliance with Bangladeshi tax laws 🔹 E-TIN, a software suite from Southtech,Withholding Tax and e-return coverage
Bookkeeping Language
Bengali or English is the accepted language for bookkeeping.However, in some cases, such as when a foreign company enters into a joint venture through an acquisition or investment, the local company’s financial figures may be viewed in Bengali.In addition, vouchers that serve as the basis for bookkeeping are often written in Bengali except for BtoB transactions, and expense audits and handwritten or Excel-based petty cash ledgers are often written in Bengali, making it difficult for Japanese auditors alone to conduct internal audits.