October's edition of the IAB features commentary from member firms in Argentina and Mexico on the state of the local accounting industry
Focusing on country reports for Argentina and Mexico, October's edition of the International Accounting Bulletin (IAB) features contributions from MGI Worldwide member firms Casal, Vecchi, Rodriguez Spuch y Asoc. SRL and MGI Jebsen & Co. in Buenos Aires; and Zesati Contadores and MGI Bargalló, Cardoso y Asociados, S.C. of Mexico City.
Brain drain and low confidence challenge Argentina’s economic growth
With inflation predicted to hit 100% at the end of the year, Argentinian accountancy firms are now operating in a very challenging economic environment - professionals and multinational firms alike moving their business elsewhere. Confidence in the government is at an all-time low and the country is struggling to attract investment.
The IAB spoke to MGI Worldwide member Ignacio Rodríguez Spuch, Partner at Casal, Vecchi, Rodriguez Spuch y Asoc. SRL, who shares his thoughts on there being significant competition in terms of fees, and the need to make various adjustments to processes in order to better compete.
“We consider of great importance the investment in technology to carry out routine tasks, which allows a more efficient use of our professional team, focusing on providing more consulting services; as well as promoting the atomisation and diversification of activities that clients demand we develop, in order to successfully go through the different national and global economic cycles.”
Ignacio Rodríguez Spuch
Casal, Vecchi, Rodriguez Spuch y Asoc. SRL
Rafael Faillace, Partner at MGI Jebsen & Co., agrees that fees are still very competitive despite the high demand.
“We have seen a spike in demand for BPO and tax services over the last 12 months, principally because international companies are moving their internal accounting and tax departments to companies who specialise in these services."
Rafael Faillace
MGI Jebsen & Co.
Tax evasion reform improves accountancy opportunities
Mexico is looking to exploit its relationship with the US, it nearest neighbour, to boost growth, but is experiencing flatlining foreign direct investment as the global economy faces up to the possibility of recession.
MGI Worldwide member Cuauhtemoc Contreras, Partner at Zesati Contadores, points out that in his opinion, customers are focusing on price rather than quality.
“People will always need our services but I find that a lot of firms are dropping fees in an effort to win clients. In the long term, this is bad for our profession.”
Cuauhtemoc Contreras
Zesati Contadores
Rafael Castellanos Perez, partner at MGI Bargalló, Cardoso y Asociados, S.C., shares similar concerns.
“Economic conditions mean that clients are going to be demanding reduced fees for some time to come. The challenge is to have sufficient and qualified human resources, as well as being up to date in terms of technology so we are able to provide agile services for customers who seek both cost reduction and a service with greater benefits.”
Rafael Castellanos Perez
MGI Bargalló, Cardoso y Asociados, S.C.
The most recent data has been published and we are thrilled to announce that our member firms are ranking highly against the other top accounting associations!
In Argentina our member firms are ranking 14th for fee income and 16th for staff data. Our member firms in Mexico are ranking 13th for both fee income and staff data while in Peru our member firms are at 17th for fee income and 14th for staff data.
MGI Worldwide would like to congratulate our member firms in Argentina, Mexico and Peru, who are responsible for helping achieve these fantastic results.
For more information about our member firms in Argentina and Mexico
Visit the Casal, Vecchi, Rodriguez Spuch y Asoc. SRL website or firm profile.
Visit the MGI Jebsen & Co. website or firm profile.
Visit the Zesati Contadores website or firm profile.
Visit the MGI Bargalló, Cardoso y Asociados, S.C. website or firm profile.
MGI Worldwide with CPAAI, is a top 20 ranked global accounting network and association with almost 9,000 professionals, accountants and tax experts in some 400 locations in over 100 countries around the world.