17th November 2021
The October edition of the International Accounting Bulletin (IAB) features Country Reports from Peru and Mexico and we are delighted to see our member firms Ramirez, Saco y Asociados and MGI Bargalló, Cardoso y Asociados sharing valuable accounting news and updates from their respective countries.
Hopes for positive growth in Peru
Peru was hit hard by Covid and recovery is expected to take time. However, along with the forecast of a period of high inflation, there is growth across most sectors as the business community waits to see how the recently elected left-wing government will guide the country through the next year.
Covid triggered a recession in Peru but firms have been making the most of new opportunities to strengthen their service offering and hopefully enter a positive period of new growth.
Angel Saco, partner at Ramirez, Saco y Asociados S. Civil de R.L, comments:
“There has been an increase in the outsourcing of accounting, tax and payroll services, and that is an opportunity for firms like ours. However, the flip side of the coin is that now there is strong competition in the market, in which the added value or additional services that firms must offer to clients are a determining factor for companies when choosing a service provider.”
Angel further elaborates that the firm’s recruitment, selection and retention processes have become more exhaustive and demanding as, while the supply of accountancy professionals has increased, there are concerns about the skills that are on offer.
Accounting practices in Mexico
The Mexican SME sector has historically been slow to adopt good accountancy practices and corporate governance. This can hinder them when competing with foreign companies and is being seen as a possible hinderance to Mexico’s Covid recovery.
One of the main problems with the current administration is the lack of clarity in new tax rules, with some arguing that such a heavily regulated environment brings an increase in risk to tax advisors because they now have the responsibility of formal obligations and potential fines. However, Rafael Castellanos Perez, Partner at MGI Bargalló, Cardoso y Asociados, S.C., does not feel that the rate of tax reform is of particular concern to Mexican companies. He comments:
“The simple evolution of business already forces us, as a profession, to be permanently updating our knowledge. Fortunately, the accounting profession in Mexico forces its members to comply with continuing education programmes, which helps to keep it updated.”
Latin America firms remain strong in their local markets
We’re delighted to reveal that our member firms in Peru, Mexico and Argentina are ranking highly against the other top accounting associations!
October’s accounting network and association rankings have been published. We’re thrilled to announce that in Peru, our member firms are ranking in 6th position for fee income and 5th for staff data. In Mexico, our member firms hold 6th position for both fee income and staff data while member firms in Argentina hold an impressive 3rd position for fee income and are 4th for staff data.
MGI Worldwide CPAAI would like to congratulate our member firms in South America who are responsible for helping achieve these fantastic results.
For more information, visit Ramirez, Saco y Asociados S. Civil de R.L profile page and website, and the MGI Bargalló, Cardoso y Asociados, S.C. profile page and website.
MGI Worldwide with CPAAI, is a top 20 ranked global accounting network and association with almost 10,000 professionals, accountants and tax experts in some 460 locations in over 100 countries around the world.