The new and changing tax regulations in Mexico have become a challenging task far beyond just applying debits and credits. The handling of XML files in journal vouchers, electronic invoicing CFDI 3.3, Electronic Payments, Electronic Accounting 1.3, etc., have forced the accounting department to search for tools that not only support the handling of accounting in an accurate way, but integrate all the accounting practices with the rest of the company.
An ERP software (Enterprise Resource Planning) aligns and integrates each department in the company into a single platform, empowering all the business processes the occur into a single system becoming the “backbone” of a company.
For example, the generation of the electronic invoice must be aligned with the sales and delivery process in such a way that it automates and speeds up the process, linking the company with the Mexican Tax authority (SAT) generating the CFDI 3.3 and at the same time updating AR (accounts receivable), inventories and creating a journal voucher in accounting, all this while maintaining a link with the XML files generated as the SAT requires.
An ERP system must help the organization to comply with all the accounting requirements, as well as integrate each area or department of the company, keep in mind that the accounting information is a copy of each business processes that occurs within the organization, resulting in financial statements that reflect the health of the company.
Changes in the market are inevitable, especially in tax related issues in Mexico and Latin America, but with the right tools these will become opportunities. We should always think of new alternatives that take us a step forward, helping us create a optimal business processes that optimize our daily activity. Let’s always keep an open mind!
Recommended article: Mexico Invoicing CFDI 3.3