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You´ve probably heard the acronym TMI which stands for Too Much Information. And especially in this age of social media, some people tend to share way too much! However, in the case of your conversations with your accountant, we like to say there is never such a thing as too much information.

 

What Should You Share

Banking Transaction Details

Every month, you should share a detailed report with your accountant showing every transaction your business made through the corporate bank account – including all income, expenses, capital investments and loans made to and borrowed from the company. We recommend downloading your bank statement into an editable document. Then, include a column that provides more details.

Received a deposit via a wire transfer from Canada for your rental unit in Tulum? Make a note next to the deposit information on your transaction detail report that says ¨rental income¨. Made a payment to Office Depot for a computer and desk for your new employee? Add a comment such as ¨equipment purchase for new employee¨. Your accountant needs to know the details, so they can properly record all your income and expenses in your accounting ledger.

With regards to loans, we highly recommend contacting your accountant before you make any loans or capital investments.

Purchasing or Selling Property

If you are planning on purchasing or selling property, you should contact your accountant before any financial transactions take place. In the case of a purchase, notifying your accountant ahead of time will allow the accountant to ensure that all property is properly registered in your accounting ledgers and records with SAT when the closing is complete. They will also advise you about what documentation you should gather to reduce or avoid capital gains should you ever decide to sell your property. In the case of a sale, they will calculate your capital gains and advise you in advance of how much tax, if any, you need to pay.

Building and Remodeling Projects

As in the process with purchasing property, it is important that you notify your accountant of plans to build new construction on a piece of land you own through your corporation, or any remodeling projects you have on an existing property. Again, any changes to the property will need to be properly registered with SAT, especially if you are planning on earning income due to the construction – for example, building a four-unit condo building on the property you purchased.

Keep the Lines of Communication Open

Especially when first starting a business, it is best to have as much contact with your accountant as possible. Eventually, your conversations with your accountant will become less frequent as you learn the ropes but remember, in terms of information sharing, less is definitely not more when dealing with accounting and taxes. If you ever have questions or concerns, you should never hesitate to reach out accountant. You´ll never hear ¨TMI¨ from them!

If you´re interested in how to add Mextax to your list of frequent contacts, please contact us for a quote for our services.