December in Mexican Companies: Key Tasks

December is not only the month of festivities in Mexico; it is also a crucial time for businesses as they close their accounting books and prepare for the next fiscal year. Therefore, it is important for you to understand that the administrative and fiscal activities in December are fundamental. In this article, we will break down the main tasks that are usually carried out during this month, including mandatory rest days, so that you are aware and can contribute in an informed manner.

Financial Closure

December marks the closure of the fiscal year in Mexico. Companies must ensure that all accounting records are up to date and accurately reflect the transactions of the current year. This involves reconciling accounts, verifying balances, and generating financial statements that will be crucial for strategic decision-making and reporting to tax authorities.

Tax Declarations

The end of the fiscal year goes hand in hand with the submission of tax declarations. Companies must comply with obligations such as the Income Tax (ISR) and the Value Added Tax (IVA). It is crucial that you are aware of these processes, as they can affect the withholding of taxes on your salary and those of other members of the company.

Aguinaldo and Benefits

December is also the month when companies pay Aguinaldo to their employees. This benefit is mandatory and must be equivalent to 15 days’ salary. In addition to the Aguinaldo, it is common for some companies to provide benefits beyond what is mandated by the Federal Labor Law, such as bonuses or additional benefits, which can have tax implications for both employers and employees.

Fiscal Planning for the Next Year

The end of the fiscal year is the ideal time for fiscal planning for the next year. Companies review their financial structure, assess strategies to optimize their tax burden, and plan deductible investments and expenses. You should be informed about these changes, as they could affect your working conditions and benefits.

Projections and Budgets

With the close of the year, companies also review their projections and budgets for the next fiscal year. This involves analyzing the financial performance of the current year, identifying areas for improvement, and setting realistic goals for the future. Key or important position workers can be an integral part of this process by providing valuable insights from their experience and knowledge.

Preparation of Work Plans for the Next Year

As part of the planning for the next year, companies develop detailed work plans. This includes defining objectives, allocating resources, setting deadlines, and designing strategies to achieve specific goals. Key or important position workers must actively participate in this process, contributing their perspective and experience to ensure that the plans are realistic and aligned with the overall goals of the company.

Closure of KPIs (Key Performance Indicators)

The end of the year is the perfect time to evaluate performance by closing KPIs. Companies review the key performance indicators established at the beginning of the year to measure progress toward goals. Collaboration in this process is essential, sharing experiences and contributing to the identification of areas for improvement.

Mandatory Rest Days

During December, the 25th is considered a mandatory rest day, celebrating Christmas. In addition, December 12th is the Day of the Virgin of Guadalupe, but this is not mandatory. Both are holidays that can influence the planning of work activities. Foreign workers must be aware of these days to coordinate their work and personal responsibilities effectively.

By understanding the key activities that occur during this period, you can lead and collaborate more effectively, contributing to the ongoing success of the company in the new fiscal year. Happy holidays and a prosperous New Year!

“December, the final chapter of the annual book, where we write with gratitude and close with hope.”

Roger Mariano

Roger Mariano

Deputy General Manager, Manager, Consultant, Professor, lecturer, with over 20 years of experience in key roles in the Human Resources field, often serving as a change agent in both National and Multinational Companies. I aim to support my national and international colleagues, as well as anyone interested in learning about my experience in human resources management in Mexico.

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