International Accounting Bulletin (IAB) has ranked MGI among the top five accounting associations in Colombia.
February’s edition of the IAB shows the alliance is the fifth largest accounting association in the country by both fee data and staff numbers.
Last year fee revenues topped 3.4 billion Colombian pesos, roughly $1.3 million, while the number of staff was steady at just under 60 across the three offices.
MGI has three member firms operating in Colombia.
MGI VIA Consultoría, which is based in Cali.
MGI Argüelles y Asociados, which is based in Barranquilla.
MGI Páez Asociados in the capital Bogota.
Hector Fabio Mejia Herrera, consulting director at MGI Via Consultoria, notes there have been some pretty significant changes to accounting in Colombia, not least two recent tax reforms in 2012 and 2014.
But it’s the implementation of IFRS that seems to be the biggest challenge.
“The adoption of IFRS implies a change in the accounting policies of the companies and therefore all company personnel must learn this new financial reporting system, since it not only affects the accounting and financial areas, but also processes and enterprise systems because the standards modify the basis of information they use,” says Hector.
“The convergence from local standards to IFRS therefore requires the development of a strategic plan at the highest level in order to manage the transition in a comprehensive way.
“This whole process will undoubtedly involve additional costs and expenses.”
However, Hector believes a shortage of skilled accountancy and tax professionals in the country poses challenges for both companies and the system as a whole.
MGI is the 11th largest association in Latin America, according to the IAB, with firms across 15 countries in the region driving $22.5 million in fees last year.
For more information members can visit mgiworld.com > Member Area to download the full Colombia Country Survey. Go to Useful Links, IAB February issue or contact email@example.com