Last Update: January 22, 2024
Opening a Business in Mexico: Initial Accounting Process
You´ve created your corporation, hired your accounting firm, obtained your FIEL from SAT, opened your bank account and now you´re ready to begin operations. Learn how to collaborate with your Mexican accountant to ensure your corporation meets its fiscal obligations.
File First Declarations
While you are working on getting ready to begin operations, your accountant has already started filing your monthly declarations with SAT. That is because even though you may not have made your first sale yet, your corporation must file monthly beginning with the first month that coincides with the date your business was officially incorporated. This date will appear on your articles of incorporation (known in Mexico as an acta constitutiva).
Use the Corporate Bank Account
Your accountant will remind you that all your business transactions must be completed through your corporate bank account. If, as a shareholder, you need to invest additional capital into the corporation or provide the corporation with a loan, you must notify your accountant before making any deposits. Your accountant will need to ensure that any deposits made by shareholders are properly registered in the accounting records as either a loan or a capital investment. Additionally, you may also require a legal document to support this transaction, ensuring compliance with tax regulations and avoiding any misunderstandings with the tax office.
Facturas for Income
As mentioned in our previous article (Opening a Business in Mexico: Getting Started), your corporation will need to issue a factura (digital invoice) for any income you receive. There are two ways in which you can issue a factura. The administrator you hired can use the SAT website or a software you purchase to issue the facturas. Or your accountant can do this for you for an additional fee.
Facturas for Deductible Expenses
You will also need to request facturas from your suppliers. They will need specific information to your corporation, including the RFC, in order to issue the factura. Your accountant can provide you with this information, so you can have it on hand when making purchases. In future articles, we will discuss which items can be considered deductible. In the meantime, your accountant can advise you on deductible expenses.
Teamwork
It is important that you, your accountant, and your corporate lawyer work together as a team to ensure that your corporation minimizes any risk of non-compliance with SAT requirements and Mexican tax laws. You should maintain constant contact with them, especially in the early stages of your business and when your business undergoes any changes, growth, or expansion.
Mextax is ready to be a member of your team to ensure the success of your new business in Mexico. For more information or a quote for our services, please visit the contact us section of our websites.
