Companies

Overview

Companies represent legal entities within an organization. Each company has its own:

Functional currency (primary operating currency)
Chart of accounts (accounts are company-specific)
Fiscal year end (defines fiscal periods)
Jurisdiction (country of incorporation/operation)

Companies are the primary scope for accounting operations. Journal entries, accounts, and fiscal periods are all scoped to a company.

Company Data Model

packages/core/src/company/Company.ts

export class Company extends Schema.Class<Company>("Company")({
  id: CompanyId,
  organizationId: OrganizationId,
  name: Schema.NonEmptyTrimmedString,
  legalName: Schema.NonEmptyTrimmedString,
  jurisdiction: JurisdictionCode,
  functionalCurrency: CurrencyCode,
  reportingCurrency: CurrencyCode,
  fiscalYearEnd: FiscalYearEnd,
  isActive: Schema.Boolean,
  // ... additional fields
})

Core Properties

CompanyId (UUID)

required

Unique identifier for the company

organizationId

OrganizationId

required

Reference to parent organization

name

string

required

Display name of the company (e.g., “Acme Corp”)

legalName

string

required

Legal registered name (e.g., “Acme Corporation, Inc.”)

jurisdiction

JurisdictionCode

required

Country of incorporation (ISO 3166-1 alpha-2 code like “US”, “GB”, “DE”)

functionalCurrency

CurrencyCode

required

Primary operating currency per ASC 830 (ISO 4217 code)

reportingCurrency

CurrencyCode

required

Currency used for financial statements (often same as functional currency)

fiscalYearEnd

FiscalYearEnd

required

Fiscal year end date (month and day)

isActive

boolean

required

Whether the company is currently active

Optional Properties

taxId

string

Tax identification number (EIN, VAT number, etc.)

incorporationDate

LocalDate

Date when the company was legally incorporated

registrationNumber

string

Company registration number for the jurisdiction

registeredAddress

Address

Official legal address where the company is registered

industryCode

string

NAICS or SIC industry classification code

companyType

CompanyType

Legal structure (Corporation, LLC, Partnership, etc.)

incorporationJurisdiction

JurisdictionCode

Jurisdiction where incorporated (if different from operating jurisdiction)

retainedEarningsAccountId

AccountId

Account for posting net income during year-end close

Company Types

Companies can have different legal structures:

packages/core/src/company/CompanyType.ts

export const CompanyType = Schema.Literal(
  "Corporation",
  "LLC",
  "Partnership",
  "SoleProprietorship",
  "NonProfit",
  "Cooperative",
  "Branch",
  "Other"
)

C-Corp, S-Corp, or public company with shareholders

Fiscal Year End

The fiscal year end defines when the company’s fiscal year closes:

packages/core/src/company/Company.ts

export class FiscalYearEnd extends Schema.Class<FiscalYearEnd>("FiscalYearEnd")({
  month: Schema.Number.pipe(Schema.int(), Schema.between(1, 12)),
  day: Schema.Number.pipe(Schema.int(), Schema.between(1, 31))
})

Common Fiscal Year Ends

Calendar Year (December 31)

const CALENDAR_YEAR_END = FiscalYearEnd.make({ month: 12, day: 31 })

Most common for US companies. Fiscal year = calendar year.

Fiscal Year Ending March 31

const FISCAL_YEAR_END_MARCH = FiscalYearEnd.make({ month: 3, day: 31 })

Common in UK, India, Japan. Aligns with government fiscal year.

Fiscal Year Ending June 30

const FISCAL_YEAR_END_JUNE = FiscalYearEnd.make({ month: 6, day: 30 })

Common for educational institutions and governments in US, Australia.

Fiscal Year Ending September 30

const FISCAL_YEAR_END_SEPTEMBER = FiscalYearEnd.make({ month: 9, day: 30 })

US federal government fiscal year.

Display Format

const fye = FiscalYearEnd.make({ month: 12, day: 31 })

fye.isCalendarYearEnd  // true
fye.toDisplayString()  // "December 31"

Functional vs Reporting Currency

Functional currency and reporting currency are distinct concepts per ASC 830:

Functional Currency

The currency of the primary economic environment in which the entity operates:

Currency in which company generates revenue
Currency in which company incurs expenses
Currency of financing and investing activities

Functional currency cannot be changed after initial setup. It reflects the economic reality of the company’s operations.

Reporting Currency

The currency used for presenting financial statements:

May differ from functional currency
Used for consolidated group reporting
Translation adjustments recorded in equity (OCI)

Same Currency Scenario

US subsidiary with USD functional currency and USD reporting currencyNo translation needed - amounts recorded directly

Different Currency Scenario

UK subsidiary with GBP functional currency and USD reporting currencyTranslation required - use current rate method (ASC 830)

Creating a Company

UI Workflow

The company creation form includes multiple sections:

Basic Information
Currency
Fiscal Year
Additional Details

Company Name (required)
Legal Name (required)
Jurisdiction (required, searchable dropdown)
Tax ID (optional)
Incorporation Date (optional)
Registration Number (optional)

Form Component

packages/web/src/components/forms/CompanyForm.tsx

export function CompanyForm({
  currencies,          // Currency options
  jurisdictions,       // Jurisdiction options
  onSubmit,            // Submit handler
  onCancel,            // Cancel handler
  defaultCurrency      // Default from organization
}: CompanyFormProps)

Auto-Fill Features:

When jurisdiction is selected, functional currency auto-fills from jurisdiction’s default
Reporting currency defaults to same as functional currency
Fiscal year end defaults to December 31

API Request

const { data, error } = await api.POST('/api/v1/companies', {
  body: {
    organizationId,
    name: "Acme UK Ltd",
    legalName: "Acme UK Limited",
    jurisdiction: "GB",
    taxId: "GB123456789",
    functionalCurrency: "GBP",
    reportingCurrency: "USD",
    fiscalYearEnd: { month: 3, day: 31 },
    companyType: "LLC"
  }
})

Company Hierarchies

Accountability supports complex company structures through consolidation groups rather than parent-child relationships on companies themselves.

This design allows:

Multiple consolidation scenarios for the same company
Different ownership percentages in different contexts
Flexible consolidation methods (full, equity, cost, VIE)

See the Consolidation documentation for details on defining parent-subsidiary relationships.

Retained Earnings Account

The retainedEarningsAccountId field specifies where net income is posted during year-end close:

company.retainedEarningsAccountId  // Option<AccountId>
company.hasRetainedEarningsAccount // boolean getter

Automatic Configuration

When applying a Chart of Accounts template, the retained earnings account is automatically identified by the isRetainedEarnings flag

Manual Configuration

Can be manually set in company settings to point to any Equity account with category “RetainedEarnings”

Year-End Close

During year-end close, all Revenue and Expense accounts are closed to the retained earnings account

Best Practices

Choosing Functional Currency

Use the currency that best reflects the company’s economic environment:Correct: UK subsidiary operates primarily in UK → GBPIncorrect: UK subsidiary operates in UK but parent is in US → Don’t use USD as functional currency just because parent uses USDReporting currency can be USD for consolidation purposes.

Fiscal Year End Selection

Consider:

Industry norms: Retail often uses January 31 (post-holiday season)
Tax year alignment: Match jurisdiction’s tax year for simpler compliance
Seasonal business cycles: End fiscal year after busy season for accurate results

Legal Name vs Display Name

Legal Name: Use full registered name exactly as it appears on incorporation documents
Display Name: Use shorter, user-friendly name for everyday use

Example:

Legal Name: “Acme Corporation (UK) Limited”
Display Name: “Acme UK”

Technical Details

Helper Methods

packages/core/src/company/Company.ts

const company = Company.make({ /* ... */ })

// Check if functional and reporting currencies match
company.hasSameFunctionalAndReportingCurrency  // boolean

// Check if retained earnings account is configured
company.hasRetainedEarningsAccount  // boolean

Type Guards

import { isCompany, isCompanyId, isCompanyType } from "@accountability/core/company"

if (isCompany(value)) {
  // value is Company
}

if (isCompanyType("Corporation")) {
  // valid company type
}

Organizations - Parent container for companies
Chart of Accounts - Company-specific account structure
Fiscal Periods - Period management per company
Multi-Currency - Currency translation for reporting

Get Started

Core Features

Advanced Features

Reporting

User Management

Overview

Company Data Model

Core Properties

Optional Properties

Company Types

Fiscal Year End

Common Fiscal Year Ends

Display Format

Functional vs Reporting Currency

Functional Currency

Reporting Currency

Creating a Company

UI Workflow

Form Component

API Request

Company Hierarchies

Retained Earnings Account

Best Practices

Technical Details

Helper Methods

Type Guards

Build docs developers (and LLMs) love

Get Started

Core Features

Advanced Features

Reporting

User Management

​Overview

​Company Data Model

​Core Properties

​Optional Properties

​Company Types

​Fiscal Year End

​Common Fiscal Year Ends

​Display Format

​Functional vs Reporting Currency

​Functional Currency

​Reporting Currency

​Creating a Company

​UI Workflow

​Form Component

​API Request

​Company Hierarchies

​Retained Earnings Account

​Best Practices

​Technical Details

​Helper Methods

​Type Guards

​Related Pages

Build docs developers (and LLMs) love

Overview

Company Data Model

Core Properties

Optional Properties

Company Types

Fiscal Year End

Common Fiscal Year Ends

Display Format

Functional vs Reporting Currency

Functional Currency

Reporting Currency

Creating a Company

UI Workflow

Form Component

API Request

Company Hierarchies

Retained Earnings Account

Best Practices

Technical Details

Helper Methods

Type Guards

Related Pages