March 31 is the deadline for filing annual corporate income tax returns in Mexico.
Free book preview Tax and legal playbook
Get breakthrough solutions to your small business questions.
February 23, 2021 3 min read
This article was translated from our Spanish edition using AI technologies. Errors can occur due to this process.
March 31 is the deadline for filing the annual corporate tax return. This tax obligation is a great opportunity for SMBs to evaluate their finances and improve their resource management. Nevertheless, the annual declaration remains a very complex task for the majority of SMEs.
Many SMEs rely on their accountants to carry out this process, but all accountants rely on SMEs to have all of their documents complete and organized. There are essentially two factors that make the declaration process difficult: 54% of SMEs perform their accounting processes manually and 61% do not constantly monitor their accounting, according to a study carried out in Mexico.
“This situation is at a disadvantage as of the date of the annual return,” said Julien Blaise, director of marketing for QuickBooks Mexico. “By simplifying and modernizing their processes, they can eliminate errors in sharing their information and avoid the fines caused by delays in delivering results. Also, by being able to have a continuous review all year round it will make it easier to follow up with their accountant and services, ”he added.
Filing your tax return on time avoids fines and eliminates the risk of tax offenses. On the other hand, it can be beneficial to optimize resources through these simple steps.
Make yourself the result of the annual financial statements clear
A good balance sheet of a company shows the machinery of daily operation for a whole year. In the declaration, it is important to check whether the degree corresponds to the year to be declared. Then the relationship between accounts receivable and payable should be incorporated without neglecting outdated invoices. After all, you need to know exactly what the total profit of the business was. It is important that all documents reflect the consistency in operation.
Keep payment information to hand and perfectly organized
One of the most common mistakes when submitting the return is the failure to record the information. The best way to prevent this from happening is to fix it and consolidate it into a single system to check that the data pre-filled in the SAT portal is consistent with the given monthly exercises. However, with the generated invoices on hand, you can validate the data to make deductions.
Identify deductible expenses
Obtaining a credit depends to a large extent on whether the recorded deductible costs apply to the business area. The categories of deductible expenses include the purchase of goods, business-related expenses, health services, contributions to employee savings, or tuition fees as these are considered material.
How can this process be simplified?
The formula is just the combination of three basic elements that every SME should consider: professional tax and accounting advice, planning ahead and using management and accounting software that allows all information to be captured instantly and instantly. In addition to good advice and planning, the accounting software allows you to spend less time and resources on these tasks. It also facilitates the relationship with the accountant and makes his advice more strategic to the company.
Not only does finance and accounting management technology make it easier to declare a company on an annual basis, it also enables better control and understanding of finances to help make better decisions. The digitization of accounting processes in 2021 is a small step for SMEs that can bring them great benefits.