Responsible Accounting Essential for Sustainable GrowthWed, 05/08/2019 - 17:04
Q: What is the full extent of Quadrum CFDI’s services?
A: The government has made a clear bet on the introduction of technology for tax collection purposes. In fact, Mexico is among the leading countries for technological advancements in terms of tax levying capabilities, which has led to radical changes in the workings of companies’ internal administration areas, such as accounting and finance. The current tax policy focuses on collecting all possible information to increase tax collection. To achieve this, the government certified a number of companies for this purpose. Today, there are 78 companies with this certification.
A fundamental part of our business is related to the duty of stamp, a process of information certification that passes through several filters until the information is verified by different channels and a digital document is approved and then sent to SAT. Although duty of stamp is part of our core business, we decided to expand our capabilities by launching a payroll system. Companies face a significant challenge in the area of human resources. All our products are technology tools that help in the daily management of a company. They are especially focused on taxes because these are products that help companies to correctly meet their tax obligations. We also work alongside a company’s board, providing them with the necessary tools to make decisions on fiscal, budgetary and treasury matters.
Q: How does Quadrum position its offering against competitors?
A: We focus on turning our products into a solution for the tax problems companies have. Part of our differentiating value is that we have a group of specialists composed of accountants, lawyers and administrators who focus on the tax arena. The service is not just a system but a full support for their operations. We have a call center through which lawyers and accountants help our clients with their actual problems related to tax compliance. We offer a 24/7 service because we understand that when it comes to invoicing and accounting there are no schedules. We understand that the service we provide is critical for companies’ operations and that a mistake in this sense might result in severe monetary consequences for firms.
Q: What are your clients’ main concerns?
A: Those responsible for the management of a company want to do things right; that is their objective. But in the end, you cannot rule out the human factor that can lead to mistakes. That is why audit processes must be applied. I would say that the main occupation for people in charge of these management areas is complying with all their obligations. We focus on providing them with the right tools so they have the adequate financial information and procedures to make decisions.
Q: What are the main difficulties faced by companies like Quadrum when trying to keep up with SAT’s requirements?
A: We have a strong training program, which means that we try to make sure that our employees undergo thorough and constant training. We also provide training to our clients and belong to different associations in the fiscal, technology and accounting sectors. We expect that the new presidential administration will undertake a comprehensive tax reform. A tax reform is not only important but also necessary, especially after the tax reform implemented in the US. In that sense, Mexico is lagging and needs to update its regulations. Otherwise, it faces competitive disadvantages.
Q: What changes to the tax code are required?
A: We need to work toward having a new legislative body that can implement the necessary changes in the tax code so Mexican companies maintain their level of competitiveness against their foreign counterparts. Whenever you analyze other countries, you see that their income tax is lower than in Mexico. If you make Mexican companies pay high tax rates and then compete with foreign companies paying lower taxes, you will see that Mexican companies are at a disadvantage.