Happy New Year 2024! As the clock marks the beginning of a new year, we open the doors to 365 days of opportunities, experiences, and learning. Starting a new year in Mexico not only means setting new goals but also carrying out a series of critical administrative and fiscal activities in companies. Understanding these practices is essential for seamlessly integrating into the Mexican work environment and complying with regulations set by the authorities. In this article, we will delve into the detailed landscape of administrative and fiscal activities typically carried out in Mexican companies during January, providing a guide for administrators to navigate this period with informed knowledge.
Fiscal Closure of the Previous Year
January marks the official closure of the previous fiscal year. Companies must ensure that all pending fiscal obligations, including the filing of annual declarations and the fulfillment of any pending requirements from the previous fiscal year, are completed. This involves reviewing balances, reconciling accounts, and presenting reports to fiscal authorities.
Annual Declarations
Annual declarations, submitted to the Ministry of Finance and Public Credit (SHCP), are an integral part of fiscal closure. Companies must provide detailed information about their economic activities, income, expenses, and any other relevant data for the previous fiscal year. Management must ensure that their income and fiscal withholdings are properly reflected in these declarations.
Update of Accounting Records
January is an opportune time to update all company accounting records. This includes ensuring that all transactions are properly recorded, reconciling balances, verifying the accuracy of financial statements, and preparing documentation necessary for internal or external audits.
Fiscal Planning for the Current Year
With the fiscal closure of the previous year, many companies take advantage of January to initiate fiscal planning for the new year. This involves reviewing the financial structure, evaluating strategies to optimize the tax burden, and planning deductible investments and expenses. Management must be aware of any changes in fiscal policies that may affect the financial situation.
Update of Labor Documentation
January is also a good time to update employee labor documentation. This may include contract renewals, profile updates, benefit reviews, and any other document related to labor obligations. In the case of foreign workers, special attention should be given to their work permits to ensure they are valid and in order.
Evaluation of Results from the Previous Year
In addition to fiscal obligations, companies often conduct a detailed evaluation of their performance during the previous year in January. This includes analyzing key performance indicators (KPIs), identifying areas for improvement, and setting goals for the new year.
Projections and Budgets for the New Year
In January, companies also work on projecting results and creating budgets for the new fiscal year. This involves setting goals, allocating resources, and defining strategies to achieve established objectives. Executives, especially those in decision-making roles, play a crucial role in global strategy planning.
Adjustment of the New Daily Salary
Since the new daily salary comes into effect on January 1, companies must adjust payroll systems to ensure all employees are receiving the updated salary in accordance with new regulations. Human Resources and Finance departments must verify that salary adjustments are correctly reflected in employee payments.
Update before IMSS
Companies must update their information with the Mexican Social Security Institute (IMSS) in January. This includes any changes in the workforce, salary adjustments, and other relevant details. Management must ensure that their data is accurately reflected in IMSS records.
Update before INFONAVIT
Updating information with the National Workers’ Housing Fund Institute (INFONAVIT) is another crucial activity in January. Companies must ensure that employee salary information and any changes are accurately reported to INFONAVIT. Management must be aware of their contributions to the housing fund and verify that the information is up to date.
The month of January in Mexican companies is not only a time for reflection on the past year but also an intense period of administrative and fiscal activities. For foreign workers, actively participating and understanding these processes is crucial for successful integration into the Mexican work environment. Staying informed about fiscal and administrative obligations will not only contribute to regulatory compliance but also to the overall success of the company in the new fiscal year.
“Success, prosperity, and new achievements in 2024 for all of you! Happy New Year from Mexico!”
Roger Mariano
