5 OHADA Rules Every West African Business Owner Needs to Know

What Is OHADA and Why Does It Matter?

OHADA (Organisation pour l'Harmonisation en Afrique du Droit des Affaires) is a legal framework covering business law across 17 countries in West and Central Africa, including Côte d'Ivoire, Sénégal, Mali, Bénin, Burkina Faso, and Togo.

Its Uniform Act on Accounting (SYSCOHADA) defines exactly how businesses must record transactions, prepare financial statements, and report to tax authorities.

Non-compliance isn't just an accounting problem — it's a legal one. Here are the five rules that matter most in practice.

Rule 1: Your Fiscal Year Must Be 12 Months

Under SYSCOHADA, every business must maintain accounts over a 12-month fiscal period. For most businesses this is the calendar year (January–December), but you can choose a different 12-month window if it makes sense for your industry.

The practical implication: you can't close your books after 8 months and call it a year. If you started your business mid-year, your first fiscal period can be shorter — but every subsequent one must be exactly 12 months.

Rule 2: You Must Keep Source Documents for 10 Years

Every invoice, receipt, contract, and bank statement must be kept for a minimum of 10 years. This isn't optional — it's a legal requirement enforceable during a tax audit.

Digital copies are accepted if they are faithful reproductions of the original and stored in a secure, non-alterable format. Kaba's receipt capture and document storage satisfies this requirement.

Rule 3: The Chart of Accounts Is Standardized

SYSCOHADA prescribes a specific chart of accounts — a numbered classification system for every type of transaction. You don't get to invent your own category names.

For example:

Class 1: Capital and long-term liabilities

Class 4: Third-party accounts (customers, suppliers)

Class 6: Expense accounts

Class 7: Revenue accounts

Kaba maps your transactions to these classes automatically, so your P&L and balance sheet are always in the correct SYSCOHADA format.

Rule 4: Financial Statements Must Be Produced Annually

Every business must produce three core financial statements at the end of each fiscal year:

Bilan (Balance Sheet) — assets, liabilities, and equity

Compte de résultat (P&L) — revenues and expenses

Tableau des flux de trésorerie (Cash Flow Statement)

These must be filed with your tax authority within 4 months of your fiscal year end. Late filing attracts penalties.

Rule 5: Accrual Accounting Is Required

SYSCOHADA requires accrual accounting — revenue and expenses are recorded when they are earned or incurred, not when cash changes hands.

This is the most common source of confusion for small business owners who track cash. If you invoice a customer in December but they pay in February, the revenue belongs in December's books.

Kaba handles this automatically when you create invoices and record expenses.