From transformational growth to instability and uncertainty, MGI Worldwide members in Argentina and Mexico comment
Whilst conducting business in Argentina remains challenging due to ongoing issues such as hyperinflation, a significant brain drain resulting from mass emigration, and frequent fluctuations in exchange rates, Mexico is undergoing a transformation driven by nearshoring, a surge in entrepreneurship, and the digitisation of its economy.
In a recent edition MGI Worldwide members in both countries took time out to speak with the International Accounting Bulletin sharing their views on the accounting industry in their local markets.
Mexico finds itself transformed
Mexico is currently experiencing huge growth in its economy and thanks to its strong trading partnership with the US, local firms are becoming global players. Along with a crackdown on tax evasion by the government, these trends are driving a huge demand for accountancy services.
Firms have noticed a surge in customer demand. Companies are increasing international business and their need for sophisticated accounting practices that can navigate cross-border complexities has grown. Technological advancements, regulatory shifts, and evolving business landscapes mean that the accounting industry in Mexico has found itself transformed.
The IAB spoke to MGI Worldwide member Cuauhtémoc Contreras, partner at Zesati Contadores, Mexico City, who identified that while this is a positive state of transformation, there is a skills shortage to keep up with the new demand.
Cuauhtémoc Contreras
“It is difficult to find people who are interested in accounting. Universities see a small demand to study for this career. Because of this, it’s not easy to hire people – then, once they are working, it’s difficult to keep them - this last point I could say is part of a generational issue.”
The IAB also spoke to Andrés Osorio, senior accountant at MGI Bargalló, Cardoso y Asociados, S.C., Mexico City, who said that,
Andrés Osorio Porta
“Many companies now prefer to concentrate solely on their core activities and are outsourcing administrative, financial, and compliance tasks to accounting firms.”
Argentina struggles on
Hyperinflation and high currency exchange rates mean that, while demand for accountancy services is high, Argentinian firms are working harder and harder to stand still," says the IAB. Argentina currently has more than 25 different exchange rates for operations. The rules are constantly changing, which means companies are very dependent on accountants to help them navigate international payments, but it also makes it hard for their accountants to balance their own books. As well as hyperinflation, political instability hampers Argentinian businesses from growing and it has long been accused of having a hostile business environment.
MGI Worldwide member Ignacio Rodríguez Spuch, partner at Casal, Vecchi, Rodriguez Spuch y Asoc. SRL shared his thoughts in the issue.
Ignacio Rodríguez Spuch
“The new government will have to deal with the people’s demand for change. In the primary elections more than 60% of the votes were in favour of candidates with a clear pro-market economy. Whoever is elected must reverse the declining trend of the Argentine economy in recent decades. Many reforms, deregulations, price liberalisation, drastic reduction of public spending, will have to be faced. Those changes will also be a great challenge at the political level, but they are necessary and unavoidable to achieve macroeconomic stability and make it possible to return to the path of sustainable growth.”
Rafael Faillace, partner at MGI Jebsen & Co., Buenos Aires, also acknowledged the challenges Argentina faces but was positive that there were exciting things happening in the markets which indicated positive growth too.
Rafael Faillace
“The development of new businesses related to the production of oil and gas, and also lithium, will grow dramatically in the next 12 months. Not only for companies investing in these different areas, but also for suppliers of those direct investors, such as the accounting and tax sectors.”
To read the full article in the October edition of the IAB, members can click here (login to the MGI Worldwide member portal will be required).
The most recent data has been published and we were delighted to see our member firms ranking so highly against the other top accounting associations!
In Argentina our member firms ranked 15th for fee income and 16th for staff data. Our member firms in Mexico are ranked 13th for both fee income and staff data and in Peru, our member firms ranked 11th for fee income and 12th for staff data.
MGI Worldwide would like to congratulate our member firms in Argentina, Mexico and Peru who were responsible for helping achieve these fantastic results.
For more information about our member firms in Mexico and Argentina
Visit the Zesati Contadores website or their firm profile.
Visit the MGI Bargalló, Cardoso y Asociados, S.C. website or their firm profile.
Visit the Casal, Vecchi, Rodriguez Spuch y Asoc. SRL website or their firm profile.
Visit the MGI Jebsen & Co. website or their firm profile.
MGI Worldwide, is a top 20 ranked global accounting network and association with almost 9,000 professionals, accountants and tax experts in some 400 locations in over 100 countries around the world.