Kreston Vargas Ruiz
April 11, 2024
April 11, 2024
Graduated in Public Accounting at La Salle University and is in the process of graduating as a lawyer from the National Autonomous University of Mexico. He is currently the Managing Partner and in charge of the Tax and Consulting Area of the Kreston FLS SC Firm in Mexico City.
March 13, 2024
Setting up a business in Mexico has been a strategy of global businesses in the region, looking for ways to sidestep geopolitical challenges creating pinch points in supply chains. This presents an opportunity in some regions, businesses pull operations geographically closer to avoid costly delays and unpredictable prices.
Mexico is a benefactor of the US moving away from manufacturing in Asia, with US firms setting up operations closer to home Mexico, capitalising on lower labour costs, geographical proximity and free trade agreements. Enrique Pastor, Tax and Business Processes Partner at Kreston FLS in Mexico City shares his experience in setting up businesses in Mexico for the last two decades.
Whether you want to take advantage of nearshoring benefits or have your own expansion plan, before establishing a company in Mexico, it is important to consider several factors.
Conduct a detailed analysis of the Mexican or North American market if you are an exporting company to understand consumer preferences, competition, and business opportunities.
The legal and regulatory requirements for operating companies in Mexico, including obtaining permits, licenses, and compliance with labour and environmental regulations, must be considered. There are various legal entities to establish a company in Mexico. The most suitable depends on various criteria, so proper advice is essential to define the most appropriate. Regulatory issues are a speciality in professional consulting; do not embark on a venture without being sure of the regulatory requirements, which can vary even by city.
Have a plan for recruiting, training, and retaining human talent in Mexico, considering cultural and labour differences. Issues such as social security costs, union relations, and other matters must be analysed to define operational strategies in the country
Evaluate the political and economic risks in Mexico, including the recent strength of the Mexican Peso exchange rate.
Although the country has good communications, its size can affect the timing and quality of supplies. Consider this before deciding where to establish the company. Trade agreements Mexico may have the highest number of treaties to avoid double taxation and treaties to boost trade, so consider that besides the North American market, there is a whole world that could buy from you.
Consider establishing in the Isthmus of Tehuantepec area, where a project connecting the Pacific
and Atlantic Oceans by rail, complementing the Panama Canal, offering shorter crossing times and competitive costs and will offer significant real estate and industrial development opportunities. This could be beneficial if your market is not exclusively North America.
Mexico offers a variety of fiscal incentives to promote investment and economic development in various parts of the country, including development zones, border incentives, and programs like IMMEX and the Inter-Oceanic Train of the Isthmus. These range from one-third discounts on the Income Tax rate and 50% off the Value Added Tax to immediate deductions for investments in specific industrial areas or sectors.
To promote foreign investment interest in Nearshoring, the federal government enacted in October 2023 a Fiscal Incentives Decree for the 20 export production sectors listed below.
The benefits, which are the accelerated deduction of investments for companies, vary from 56% to 89%
in 2023 and 2024. An additional deduction of 25% for three years for worker training expenses, focusing on human capital development, is allowed in the Income Tax. The incentives are available in all states and municipalities of the country, extending the opportunity window by one year for interested companies
The sectors benefiting from these incentives include fertilisers, agrochemicals, food products, pharmaceuticals, electronic components, medical equipment, batteries, electrical cables, automotive engines and parts, electrical and electronic equipment, and non-electronic medical devices, among others.
A fiscal incentive is also offered for the production of copyrighted cinematographic or audiovisual works intended for export. Mexico is an attractive destination for nearshoring and the domestic market due to its strategic location, competitive costs, access to the US market, and fiscal and regulatory incentives. However, it’s crucial to consider the mentioned factors thoroughly to ensure a successful establishment in Mexico.
If you are looking for advice on establishing a business in Mexico, please get in touch.
Carlos Sierra is an accomplished expert in tax planning, risk reduction, and financial consulting, boasting over 10 years of experience. Specialising in intelligent tax strategies, he helps clients navigate complex tax laws, minimising liabilities ethically and legally. His focus includes risk assessment and mitigation, ensuring accurate and timely tax filings. With a comprehensive skill set in financial consulting, Carlos aids business owners in financial optimisation and growth. He remains dedicated to staying informed about evolving tax regulations and economic trends, equipping clients with the latest insights for sound financial decisions.
November 29, 2023
The Mexican Federal Revenue Law 2024 update by the Mexican Senate is now benefitting from the recently approved Federal Revenue Law for the fiscal year 2024, marking a significant increase in the country’s projected revenues. The total expected revenue for 2024 is 9.066 trillion pesos, a notable 9.36% increase from the previous year’s 8.29 trillion pesos. This section will delve into the specifics of these projections, including the breakdown of various revenue sources such as taxes, social security fees, and other contributions.
The Senate approved the Revenue Law for fiscal year 2024. The total amount of expected revenues for the next fiscal year is detailed as follows:
A crucial aspect of the new revenue law is the authorization to contract and exercise loans. The law permits a net domestic indebtedness of up to 1 trillion 990 billion pesos and an external indebtedness of up to 18 billion dollars. This section will discuss the implications of these debt allowances and their role in the overall fiscal strategy of the government.
One of the key highlights of the 2024 revenue law is the modification of tax structures and surcharge rates. Notably, the law maintains monthly surcharge rates at the same level as in 2023, with specific rates for extensions, installments, and deferred payments. Additionally, the income tax withholding rate on interest has seen an increase. This section will provide a detailed analysis of these changes and their potential impact on businesses and individuals.
While the Senate’s approval of the Federal Revenue Law is a crucial step, the final authorization from the Executive Branch remains pending. This section will discuss the potential economic implications of the new fiscal measures, focusing on how they might influence the national economy. It will also emphasize the importance of staying informed about the evolution of these measures and their practical impact.
Although the Senate’s approval represents a significant step forward, waiting for the final authorisation from the Executive Branch will be crucial for the implementation and effectiveness of these fiscal measures. Therefore, it is important to keep informed about their evolution and impact on the national economy.
If you would like more advice on the Mexican Federal Revenue law update, please contact the Kreston BSG team.
This guide is an overview of the Mexico’s Value Added Tax (“VAT”) system, focussed on how it affects foreign businesses trading with
the Mexico. It is general in nature and unlikely to cover the specifics of your scenario. It should be read as such and not be construed as advice. For advice as to how your business is affected by Mexico VAT please contact a Kreston Global Mexico VAT specialist.
September 11, 2023
Herbert M. Chain is a highly experienced auditor and is a financial expert with over 45 years of experience in business, accounting, and audit, having served as a Senior Audit Partner at Deloitte. He holds certifications from the National Association of Corporate Directors and the Private Directors Association, with knowledge of private company governance and effective risk management. He has extensive knowledge in the financial services sector, including asset management and insurance. Herb is a member of MHM’s Audit Methodology Steering Committee.
Contact Herb here
Guillermo Narvaez is a Tax Partner at Kreston FLS Mexico City Office and the Technical Tax Director, Global Tax Group, Kreston Global and member of the International Fiscal Association (IFA). Guillermo is a tax expert on international taxation, corporate taxes, transfer pricing, mergers and acquisitions, corporate reorganisations and litigation.
Within international taxation, Guillermo specialises in the analysis and interpretation of treaties to avoid double taxation applied to international transactions.
Contact Guillermo here.
September 8, 2023
In a recent article exploring global cryptocurrency accounting and tax standards in Bloomberg Tax, Herbert M. Chain, Deputy Technical Director of Kreston Global Audit Group and Shareholder, Mayer Hoffman McCann P.C., and Guillermo Narvaez, Technical Tax Director at Kreston Global Tax Group and Tax Partner, Kreston FLS, delve into the difficulties of codifying digital assets within the scope of existing accounting standards. You can read the full article on Bloomberg Tax, or read the summary below.
On September 6 2023, the Financial Accounting Standards Board (FASB) approved new rules for accounting for cryptocurrencies. The standard requires crypto assets to be measured at fair value each reporting period, while also requiring enhanced disclosures for annual and interim reports. The rules will be effective for 2025 annual reports, but may be adopted for earlier periods. The FASB expects to formally issue the standard by year-end. On the taxation front, crypto assets are considered personal property, subject to capital gains tax. The U.S. Internal Revenue Service recently proposed new regulations set to come into effect in 2026, with a focus on simplifying tax filings and curbing evasion.
The authors highlight that there is currently no unified global framework to govern cryptocurrencies due to the divergence in local criteria, with China, Japan, Canada and the EU offering no classification. The tax treatment varies from jurisdiction to jurisdiction, often classifying crypto as personal property, intangibles, or other asset classes for tax purposes. The lack of consensus extends to valuation models, though countries like the U.S., UK, and Australia propose fair value accounting.
When it comes to regulation, the global scene is diverse and regulators worldwide find themselves in a difficult position. Guidelines must be robust enough to address the inherent risks of this fast-evolving sector, without curbing its innovative potential. The urgency of these efforts has been underscored by recent setbacks in the crypto space, including the collapse of the FTX digital currency exchange platform. Such incidents have heightened concerns and accelerated regulatory initiatives.
In the United States, the government has released “The Administration’s Roadmap to Mitigate Cryptocurrencies’ Risks,” a comprehensive guide addressing issues surrounding protection and enforcement. Meanwhile, the European Union has made strides in creating a unified regulatory framework through its recently adopted Markets in Crypto Assets (MiCA) rules. Not to be left behind, Canada has also stepped into the regulatory arena by issuing its first set of federal guidelines.
As nations continue to take individualistic or collective strides, the onus remains on stakeholders to remain updated and adaptable, ensuring compliance while optimising opportunities.
Cross-border transactions of crypto assets also present unique tax implications. With no uniform classification of digital assets as currencies, existing double taxation treaties play a pivotal role in determining tax liability.
Navigating the maze of global tax and accounting rules for cryptocurrencies is not straightforward, but Double Tax Treaties (DTAs) offer some guidance. These treaties, modelled on a global standard, contain Articles 7 and 12, which help determine whether income from selling a crypto asset counts as a “business profit” or a “royalty.”
Article 7 applies when you Are making money from ongoing operations in another country, but only if you have a stable, permanent business there. Article 12 comes into play when you get paid for allowing, among others, the use of an intangible asset like a cryptocurrency.
Countries often hold back some tax right at the source when a royalty payment is involved. So, figuring out whether your crypto sale is a business profit or a royalty is crucial. Business profits are usually taxed in your home country unless you have a permanent operation in a foreign country. Royalties, on the other hand, can be taxed right where the payment originates.
Cryptos are intangible, just like a piece of copyrighted software. However, there is debate around whether just using the software counts as “use of copyright,” which is what traditionally triggers a royalty tax. Typically, you would need to have in-depth control or rights over the software for it to be considered a royalty.
Think of it like this: If you buy off-the-shelf software, you are paying for the use of the software itself, not the underlying algorithms or any other intellectual property. Therefore, this payment is not considered a royalty. Likewise, if you are simply buying or selling cryptocurrencies, and not tapping into its underlying algorithm for further financial gains, it may not count as a royalty either.
What is the practical impact? If your crypto income is not a royalty, you might escape withholding tax in the other jurisdiction, as per Article 7. This is especially significant given crypto assets’ growing market capitalisation, which currently hovers around $1.2 trillion.
As cryptocurrencies continue to disrupt traditional financial systems and gain economic relevance, the regulatory landscape is ever-changing. Whether it is accounting standards or tax treatments, differences exist across countries—from complete bans to open-armed acceptance. It is crucial, then, to consult experts to understand how each jurisdiction treats crypto assets, as global policies are far from settled.
Boasting a global market cap nearing $1.2 trillion as of July 2023 (Rashi Maheshwari, Why Is the Crypto Market Rising Today?, Forbes Advisor), the crypto asset sector has entrenched itself as a mainstay in the financial landscape. This is even though it is still short of its 2021 zenith of nearly $3 trillion (Davis Chu and Victoria Schumacher, A Deep Dive Into Crypto Valuation, S&P Global). The crypto world is undeniably impactful but is still in a phase where policies and frameworks are very much a work in progress.
As the regulatory landscape for crypto assets is still developing, with very different positions being taken across jurisdictions. Accordingly, seeking expert advice from accounting and/or tax advisors is vital.
If you have questions about crypto assets, accounting and taxation challenges and would like to speak to an expert, please get in touch.
June 14, 2023
Kreston BSG, which has 10 offices across Mexico, recently held an event to raise the profile of the work accountants do in Mexico and the development of new technology to support businesses to grow and thrive. This event was held to mark Accountants Day in Mexico.
Kreston BSG created an infographic to share the details of the size and capacity of this ambitious firm, with 228 accountants across 10 offices, including Mexico City, Cabo San Lucas and the largest office, which is in Puebla. They recorded eight different services, including tax, audit and transfer pricing. You can read the full document with Kreston BSG capacity facts and figures here, in both English and Spanish.
Kreston BSG shared tips and answered pressing questions for businesses looking to do business in Mexico successfully. They also shared a day in the life videos, to give an inside view on what it is like supporting clients as an accountant in Mexico.
The team also held a webinar with accountants from across all the offices of Kreston BSG to discuss the future of AI in Mexico, evaluating how the team visualise accounting in the future with the rise of artificial intelligence Watch the video here in Spanish.
If you would like to learn more about Kreston BSG, please get in touch.
Javier is an audit manager at Kreston FLS in Mexico City. He graduated from Universidad Iberoamericana and holds a Master’s degree in Business Administration from Shanghai and has studied at Loyola University in Chicago. He has experience in auditing and consulting, both in Mexico and the United States, where he worked for over six years.
June 13, 2023
The use of AI in Mexico is experiencing rapid growth in adoption, which has been further accelerated by the COVID-19 pandemic. Among these technologies, Artificial Intelligence (AI) has emerged as a disruptive force, transforming the way businesses operate and deliver services. Read the full article written by Kreston FLS audit expert, Javier García Sabaté Payró, and featured in Veritas here (Spanish) or the summary below.
According to a study conducted by IBM, the current adoption of AI in Mexican companies stands at 35%, with an additional 44% already incorporating AI into their existing applications and processes. This indicates a growing recognition of the potential benefits that AI can bring to entrepreneurs and business advisors. By embracing AI, businesses can take advantage of an already thriving industry to save costs on the bottom line. Examples below;
AI offers a wide range of valuable applications, one such application is data analysis. With AI, large volumes of financial, accounting, and contractual data can be analysed within seconds. This enables the identification of patterns and trends that would be difficult to detect manually, leading to more informed decision-making and targeted recommendations for clients. Here is a brief summary of just some of the areas AI could support businesses in Mexico;
The most basic function of AI facilitates the automation of manual and repetitive tasks such as data entry and account reconciliation. This not only saves valuable time and minimises errors but also allows accountants, advisors, and entrepreneurs to redirect their focus towards strategic and high-value tasks specific to each business. By automating mundane processes, AI streamlines operations, enhances efficiency, and maximises productivity.
By leveraging AI, large volumes of data, including financial, accounting, and contractual information, can be analysed within seconds. This capability enables the identification of intricate patterns and trends that would be arduous to detect manually, potentially taking years to analyse. The ability to swiftly analyse data empowers businesses to make more informed choices and provide precise, targeted decisions, based on real-time data.
With advanced algorithms, AI can identify potential risks and evaluate their likelihood of occurrence. Moreover, by analysing vast amounts of data from diverse sources such as financial reports, market trends, legal references, and customer behaviour, analysts and entrepreneurs can concentrate their efforts on specific areas of interest. This focused approach enhances risk management practices, allowing for a comprehensive understanding of possible risks and paving the way for better outcomes.
Through AI-driven data analysis, process automation, risk analysis, electronic invoice analysis, and identification of risks, businesses can harness the transformative power of AI. By embracing these applications, organisations gain valuable insights, optimise operations, and make informed decisions that drive success in an increasingly data-driven and competitive business landscape.
AI is proving to be a valuable tool for compliance and efficiency in Mexico. For instance, AI-powered tools that facilitate the download and analysis of electronic invoices have revolutionised the process. These tools can swiftly analyse complete years’ worth of invoice information within minutes. This capability assists advisors and entrepreneurs in accurately responding to authorities’ requirements, avoiding the need for deadline extensions and mitigating potential costs for both companies and authorities.
The future of AI in Mexico looks promising, with a wealth of job opportunities emerging in the fields of data science, machine learning, and software development. According to the World Economic Forum, AI is expected to generate 900,000 new jobs in Mexico by 2025. Technological hubs such as Mexico City, Guadalajara, Monterrey, and Tijuana are witnessing a surge in startups and technology firms, further propelling the AI revolution in the country.
In conclusion, AI is revolutionising business operations and services in Mexico. Entrepreneurs and business advisors have a unique opportunity to leverage AI’s capabilities to streamline processes, make more informed decisions, and drive growth. By embracing AI early on, businesses in Mexico can gain a significant competitive advantage and pave the way for future success. With the rapid advancement of AI, it is crucial for authorities, entrepreneurs, and business advisors in Mexico to stay informed and delve deeper into this transformative technology. By doing so, they can position themselves at the forefront of the AI revolution and seize the numerous opportunities it presents for business growth and innovation in Mexico.
If you want to discuss using AI to improve business processes for your business in Mexico, please get in touch.
General Manager and shareholder of consulting companies with a Marketing/ business development and a Financial background with direct experience with several sectors (Real estate, Transport, Fintech, Legaltech, M&A, Import- Export, HR, Restructuring). Exco Polska Board Member.
Christina is an experienced consultant specialising in ESG, sustainability, and climate change. She has over 13 years of expertise and has worked with various organizations, including local municipalities, national government agencies, the Directorates-General of the European Commission, and the private sector across different industries.
May 9, 2023
Sector: ESG
Our experts and ESG Committee members Laurent Le Pajolec and Christina Tsiarta recently collaborated on an article where they shared insights on why a firm should engage in Trade Cooperation Agreement (TCA) and why existing accounting methodologies are no longer sufficient for modern-day businesses.
The Netherlands has overtaken Canada to become home to the world’s most diverse, equitable, and inclusive workplaces, as per Kantar’s Inclusion Index 2022. The index measures progress in developing inclusive and diverse workplaces globally, with personal services, non-profit, and professional services being voted as the most inclusive industries, while the entertainment industry remains among the least inclusive. Despite a growing appetite for systemic change in diversity, equity, and inclusion, progress in developing diverse and inclusive workplaces has stalled globally, with countries such as Canada, the USA, and Italy seeing a significant drop in their scores. Failure to take meaningful action impacts recruitment and retention, with one in four employees likely to leave their organisation due to a lack of inclusion.
The research indicates that although DEI has become more prominent in businesses’ agendas, there has been a lack of progress. The global score for the index remains at 55, the same as in 2020. In contrast, eight out of twelve markets surveyed have experienced a decline in their Inclusion Index score from 2019 to 2022. However, Mexico and Australia have made significant strides in DEI progress, with 15% and 7% increases in the last three years.
Industries are making varied progress in their efforts towards inclusion. Personal services (such as beauty salons), professional services (like legal and accounting firms), and non-profit organizations are leading the way. Financial services, ranking in the middle, and IT and marketing companies, in the lower half of the ranking, are taking steps to improve inclusion. However, industries like fashion, hospitality, security, entertainment, media, sports, publishing, and agriculture, ranked at the bottom, still have a lot of work to do to improve their inclusivity.
Read more from Laurent Le Pajolec and Christina Tsiarta here.
April 19, 2023
April 18, 2023
March 8, 2023
A new Head of Anti-Money Laundering has been announced by Kreston FLS in Mexico. CPA Joaquín Muñoz de Cote Navarro joins as Head of Anti Money Laundering to lead the Money Laundering Prevention and Compliance area.
His career includes 39 years of professional experience, of which 26 years have been in charge of management positions in the banking sector, developing Control, Audit, Compliance and AML/KYC functions.
Development of strategy implementation skills in complex PLD projects based on global standards of Financial Institutions of international scope.
Analytical and communication skills to identify problems and implement solutions with the necessary clarity for effective execution.
Professional experience in the Financial Sector
• Scotiabank Inverlat:
o Corporate Director of Money Laundering Prevention Control (2019-2022).
• Banco Nacional de Mexico- Citibanamex:
o Director of Compliance and Money Laundering Prevention Commercial Banking (2003 to 2018).
o Director of Credit Audit (1996 to 2003)
Professional experience in the Non-Financial Sector:
• Alcatel Indetel Telecommunications:
• Teléfonos de México SA de CV.
• KPMG Consultants
Kreston FLS comments
Enrique Pastor Socio Director en Kreston FLS Mexico City commented, “We are delighted to have invited Joaquin to be part of this project, and we are sure that soon the service at the firm will be a benchmark for the Mexican market and foreign investments that have to comply with these provisions.”
With this important incorporation, Kreston FLS (México) will be in a competitive position to attend international businesses in which compliance with these matters is a field of speciality and mandatory.
Contact CPA Joaquín Muñoz by clicking here, or calling on +52 5559857558 C. +52 5554069516
January 25, 2022
Javier Sabate, Tax & Audit Partner at Kreston FLS, Mexico, writes about upcoming changes to Mexican VAT law.
The new 2022 Revenue Law in Mexico is on track to being approved, only awaiting the Senate´s decision. This initiative under which the Mexican government estimates that it will be attaining just over $7 billion pesos, of which $3.9 billion will allegedly come directly from tax collections.
The Mexican authorities observe the following fiscal and tax matters in this Initiative:
The Initiative presented seeks to reform, add and repeal various provisions of the Income Tax Law (LISR*), the Value Added Tax Law (VATL), the Production and Services Tax Law, the Federal Law on New Car Tax, the Tax Code of the Federation and other ordinances, presented last September 8, 2021 by the Mexican President before its Congress.
The VAT changes contained in this proposed economic package for 2022 are:
As we witness the legitimate interest and effort of the Mexican authorities in continuing to facilitate the understanding and accessibility of tax payments and reporting to the general tax paying population, these efforts continue in many cases to inadvertently increase legal responsibility and administrative burden for all Taxpayers.
For these upcoming years, we strongly encourage businesses that supply goods or services to or within Mexico to pay special attention to their corporate governance, organizational structures and reporting. This will be vital in order to adequately navigate the increasing requirements for greater transparency and more accountability in the Mexican and LATAM economies.
December 21, 2021
Kreston BSG in Mexico has hit a milestone – 25 years in business. Read all about their celebrations here.
August 5, 2021
Right now, the world is changing at a dizzying pace.
Even within the past couple of years, we’ve significantly changed the way we socialise… shop… work… and even use money. (I haven’t seen a chequebook in quite a while, and many people no longer carry cash.)
But all this pales in comparison to the changes we’ve been through over the past 50 years.
Back when I started work – not 50 years ago! – there were 10 people in my team and only one computer.
It’s hard to imagine today!
It’s something I’ve been thinking about a lot, thanks to Kreston’s 50th anniversary. What are the biggest changes we’ve seen in our working lives – and in our industry?
And intriguingly – what are the biggest changes we might expect over the next 50 years, by the time Kreston turns 100?
I’ve jotted down some of my best guesses below. And I’ve also included a condensed version of the thoughts of some of our ‘Purpose Champions’, who have been helping us articulate Kreston Global’s purpose and the difference we make in the world.
I hope you enjoy reading them!
Now for a look at the past 50 years… and a bit of futurology:
>> LIZA ROBBINS:
What is the most significant change to the accounting profession during your work-life?
First, internationalisation. When networks like Kreston were established many people were probably cynical, and dismissed their goals to serve international clients as a pipe dream and/or an unrealistic hobby-horse of the founders.
Most clients did not need international services and if they did that was the domain of the Big 4 (or Big 8 back then!).
Now the world is a global village and most organisations have some aspect of international in their work.
Then, there’s people. The hierarchies (not just in professional services) are breaking down and the old pyramid “command and control” systems are becoming obsolete.
There is a fight for talent – 50 years ago people paid to do articles with a firm in some countries. Now firms are fighting for talent, and fighting against a greater pool of competing employers. The balance of power is changing.
What do you think the most significant change is likely to be over the next 50 years?
We will see new client sectors – perhaps clients operating in the value chain of space travel?
If the global balance of power continues to move toward individuals, will might need representatives in organisations (e.g. The Elon Musk organisation) as opposed to just looking at countries. The implications of individuals becoming more powerful than countries is interesting! Would organisations like Kreston need to pay to have a representative in a business to ensure we stay in that organisation’s value chain radar?
>> SUDHIR KUMAR, Senior Partner, Kreston Menon (UAE)
What is the most significant change to the accounting profession during your work-life?
The move towards outsourcing accounting-related jobs. We’ve seen some large organisations in the UAE reduce the number of accountants in their Finance Department by as much as 90% as a result. The cost saving is phenomenal. The redundant accountants, when this first happened, had to survive by pivoting towards new businesses in the SME industry and start-ups.
What do you think the most significant change is likely to be over the next 50 years?
Cloud Accounting will become the norm. To draw a parallel in the Food & Beverage industry, Dark Kitchens or Cloud kitchens (which specialise only in deliveries – they have no storefront) are predicted to be the future. It’s predicted that leading F&B brands operating virtually out of Cloud stores/Dark stores will outnumber physical stores in 5 years…
Accountants will need to do a 100% transformation and reskilling to be part of the future – like any other professionals.
>> CHARITA CHAVLEISHVILI, HR Manager, Kreston Georgia
What is the most significant change to the accounting profession during your work-life?
There are many more young people coming into this profession.
What do you think the most significant change is likely to be over the next 50 years?
Accounting software programs will replace entry-level employees.
And analytical skills or the ability to see the big picture will be more valuable than knowing the tax code.
>> MEERA RAJAH, Partner, James Cowper Kreston (UK):
What is the most significant change to the accounting profession during your work-life?
A lot has changed during my work-life… The modern accountant is highly skilled in business management. Accounting is much more about driving commercial improvement, commercial finance and the world of targets.
Another big change is the dress code. For decades, a business suit has been required attire for professionals in finance. Indeed, some say that the thin stripes on a pinstripe suit were originally meant to represent the lines on an accounting ledger. The suit reflected seriousness and practicality. It then changed to business casual and now the policy is mostly for staff to wear what is appropriate for the job that day.
Finally, the accounting profession has been traditionally male-dominated but now the presence of women in the accounting profession is overwhelming.
What do you think the most significant change is likely to be over the next 50 years?
Perhaps new forms of regulation and continued globalisation of reporting or disclosure standards. Social and environment considerations are increasing in importance alongside economic concerns in organisations.
>> EDUARDO SOLANA, Project Manager, Transfer Pricing, Kreston BSG (Mexico):
What is the most significant change to the accounting profession during your work-life?
The ability to use technology to build closer relationships and to work more efficiently with clients and colleagues. The pandemic accelerated this process, and it has allowed us to have productive conversations with people on the other side of the world, and to produce better quality work.
What do you think the most significant change is likely to be over the next 50 years?
We’ll see an economy based on cryptocurrencies and the use of the cloud will give us a large database that will give companies better business insights. We’ll see tax authorities taking advantage of these technologies to be able to carry out better planned audits that will help combat, in real time, risky tax strategies.
And how about you? What are your thoughts on the biggest changes we’ve seen – and the ones yet to come?
July 8, 2021