Tax experts must lead the company through comprehensive advice, which allows timely accounting of transactions and changing laws, to avoid errors and optimize operations and finances. We can summarize the benefits of tax accounting for your company as follows:
1. Timely accounting of accounting and financial movements
Fiscal accounting provides the evidence and the necessary supports so that the tax authority (SAT) can follow up or audit the company’s movements in a transparent manner. Accurate reports and their supporting documents give officials an account of the economic and financial situation, determining whether the tax burden is really adjusted to the size of the operations and compliance with the laws in force.
2. Compliance with changing laws
Regarding the legal or regulatory framework, nothing is more changeable than taxes and Mexico is no exception. Lack of knowledge of the procedures, complex changing rules, lack of updating systems, different technologies and manual procedures can lead to the failure of tax compliance and thus to penalties or fines. This is where professional experts in the national tax framework can assist in legal compliance, provide support to eventual audits, facilitate the practice of current regulations and facilitate adjustments to the constant changes.
3. Save money and avoid mistakes
Self-employed, SME owners and taxpayers in general see tax accounting as bureaucracy to pay taxes. As a result, they seek to save money by filing taxes on their own, which can increase expenses and lead to audits. Evidently, the more you know about tax laws and procedures, the more you will be able to adapt through processes that involve less investment of time and money. This again justifies the experts’ criteria.
4. Management automation
Since electronic invoicing became mandatory, more and more processes are automated and backed up in the cloud. And tax accounting is part of this change. The management of expenses, purchases, payments, payroll processes and electronic invoicing are integrated through enterprise resource planning (ERP) platforms, which provide the support, security, traceability and transparency that regulations demand for faithful compliance. An ERP system adapted to your business processes will generate updated information in real time, along with summaries and detailed reports to ensure the traceability and transparency of your operations.
5. A deeper understanding of the business
Not all micro and small business owners are familiar with tax laws, resulting in gaps and omissions in finance and even administration. A tax accountant fills these gaps and leads you to a better understanding of the impact of taxes on day-to-day activities and their effect even on the financial statements of the business. Working hand in hand with an experienced tax accountant allows a different view on the financial health of the company, identify areas of growth and receive early warnings of areas that need corrections or adjustments.
Internal or external tax accounting?
The benefits of tax accounting are valid, whether the consulting and support services are contracted outside the company (through a specialized firm) or whether the balance leans towards the incorporation of professionals with such training to the company’s payroll. Everything will depend on the size of the company and the complexity of your business model. Obviously, MSMEs and independent entrepreneurs are more suitable for outsourcing, while an in-house tax accounting area is compatible with large companies, as defined by the Ministry of Economy.
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You may be interested in: https://lawincabo.com/tax-strategies-to-pay-less-taxes-in-mexico