Finance & Accounting,
built for Ethiopia.

Ethiopian withholding tax applies to supplier payments meeting threshold and transaction-type conditions. The rate varies by transaction class — supplies of goods, services, professional fees, rent — and the threshold differs by registration status of the supplier. Getting any of this wrong creates penalty exposure for the paying business.

NYLOS flags every supplier payment that meets a withholding threshold, applies the applicable rate based on the transaction type and supplier registration, generates a withholding certificate for the supplier (in MOR-acceptable format), and accrues the withholding liability in the GL. Period-end summaries export in the format MOR expects for declaration.

Read the deep-dive: Withholding tax in Ethiopia — a software reference.

Ethiopian businesses with annual turnover below the VAT registration threshold operate in TOT mode. TOT applies a lower tax rate to gross turnover and uses a different invoice format than VAT. The distinction matters: a business in TOT mode that issues VAT invoices, or vice versa, creates compliance exposure at both ends of the transaction.

NYLOS supports VAT mode or TOT mode per legal entity. Tax codes, invoice templates and declaration exports adapt to the selected mode. When a business crosses the threshold and must transition from TOT to VAT, NYLOS handles the switch as a configuration change with full audit trail — the date of the transition, the user who approved it, and the carry-over treatment for in-flight transactions all preserved.

Read the deep-dive: TOT vs VAT in Ethiopia — which applies to your business?

Ethiopian businesses operate with the Birr as the functional currency but trade with foreign suppliers and customers in USD, EUR, GBP, AED and others. NYLOS records every foreign-currency transaction at the transaction-date exchange rate, maintains both the Birr value and the original currency value, and revalues open foreign-currency balances at month-end using the prevailing rate.

Realized FX gain/loss posts when foreign-currency receivables or payables settle. Unrealized FX gain/loss posts at month-end revaluation. Both go to designated GL accounts per IFRS for SMEs Section 30. Rate sources can be the National Bank of Ethiopia (NBE) indicative daily rate, a custom company rate per period, or a third-party feed.

Every transaction in NYLOS can carry up to five configurable dimensions — branch, cost center, project, department, donor or any other label the business uses. Reports — P&L, Balance Sheet, cash flow — can be sliced by any dimension or combination, without leaving the ledger and without a separate analytics layer.

For groups operating multiple legal entities, NYLOS supports multi-entity consolidation on the same instance. Each entity has its own MOR registration, its own currency footing if needed, and its own filing identity, while consolidation reports roll up at the group level with elimination of inter-company balances.

Bank reconciliation in many Ethiopian finance teams is a multi-day monthly exercise: download the bank statement, print it, tick off transactions by hand against the cash book, chase the variances. NYLOS replaces it with a side-by-side reconciliation interface.

Import bank statements via CSV, OFX or MT940. For banks with API access, pull statements directly. The reconciliation engine auto-matches transactions to GL entries based on amount, date and reference. Unmatched items surface for resolution: missing journal entries, timing differences, bank fees not yet booked. Once resolved, the period reconciliation is locked and preserved with full audit trail.

Read the deep-dive: Bank reconciliation in Ethiopia — how to automate the monthly close.

Every create, update and delete on every record logs the user, timestamp, prior value and new value. Approvals are logged with the approver's identity and any comments. The activity log is queryable in-platform and exportable for audits.

Period close follows a structured workflow: pre-close trial balance review, lock by user role (so transactions cannot be back-dated into a closed period), controlled post-close adjustments through a dedicated journal entry route, and full audit trail of every period transition. Closed periods can only be re-opened by an authorized user, with the reason logged.

When an audit firm — EY, KPMG, PwC, BDO, Deloitte or others — opens an engagement, NYLOS produces the full transaction trail, approval history, source-document linkages and tax-by-tax-code analyses on demand. Audit preparation that used to consume weeks now takes hours.