5 advantages of hiring a consultant for your business expansion

If you’re looking to establish your company in Mexico, it’s recommendable that you hire a consultant…

 

Whenever a company has projects of investment, restructure, expansion, or M&A in mind, they hesitate before the possibility of hiring a consultant or firm of consultants. But the truth is, that this may be the best decision a business can make if their goal is to grow fast or conquer a new market.

It’s natural to think that asking for help can mean that the company itself is not capable enough, but on the contrary, seeking the advice from experts will reflect on the results. So if you are looking to establish your company in Mexico, we share with you 5 advantages of hiring a consultant to do it right:

 

Brand new set of eyes

An outsider can share more insights than you imagine. Being too close to the company, CEO’s, managers, and employees can often ignore problems. The new perspective of a consultant can identify those risks that maybe nobody had anticipated and propose different strategies.

 

Expertise

Consultants have years of experience, which means that they can share skills, techniques, and some other secrets when it comes to establishing a new company. Trust the experts and their methodology to guide your project through this new endeavor you’re about to dive in.

 

More productivity

By delegating this work to a consultant, your employees can stop worrying about executing tasks that they aren’t experts in. Therefore, they will focus on their own tasks and deliver efficiently.

 

Market knowledge

If there’s something consultants know it’s market analysis. They investigate the competition and how are they approaching their customers. With this information, you can make smart decisions and optimize your resources.

 

Identify risks & opportunities

Because of their expertise and knowledge, consultants are able to identify, mitigate, and solve any risk that comes across your expansion journey. On the other hand, they can also point out opportunities that maybe you hadn’t considered and construct a new and improved plan.

In VLH we have qualified consultants that will guide through your expansion throughout the world. Trust our experts with your globally-based company and contact us to get started with an expansion strategy.

The main objectives of External Audits

Why do companies tend to execute external audits? Discover the reasons here…

If you want to conquer the international market you have to be certain that your business complies with financial, fiscal and accounting issues.

We live in a changing environment of business practices and regulations. That’s why it’s important for your company to execute External Audits before and after establishing in a new country, like Mexico. Many businesses look for this kind of certifications, because they not only offer a better corporate image, but also help you find investors. Here are the main objectives of External Audits:

Financial: Before establishing in Mexico, you must perform a financial statement. This reports are prepared with IFRS (International Financial Reporting Standard). With this, your financial information will be trustworthy to shareholders, credit institutions, government authorities or investors.

Fiscal: Once you’ve established your company in Mexico, you will have to start fulfilling with tax normative. Each fiscal year, you will have to present a statement that proves that you’ve complied with all your obligations as an employer. To properly present this statement, you will need an External Audit.

Accounting: Accounting is probably one of the most complex aspects in a company. Mistakes or frauds can be made during its process and operations. Here’s where External Audits help your company, by preventing operations of illicit origins.

If your company’s next stop is Mexico, we can support you with audits and advisory in financial, fiscal and accounting matters. Contact us, we are happy to help.

What are the advantages of doing a Social Security audit?

If you are establishing your company in Mexico, you should know what are Social Security audits…

For several years now, IMSS (Mexican Institute of Social Security) and INFONAVIT (Institute of the National Fund For Housing for Workers) have been asking companies to issue statements, with the purpose of checking that they fulfill correctly the fee payments of workers.

These statements are important obligations for employers. In case of avoiding them, the company may be subject for sanctions from the authority.

The documents must be issued by authorized public accountants, since it’s a specialized and complex task. This is why it’s smart to look for an audit firm to execute this process in a correct way.

It should be mentioned, that the IMSS statement is mandatory for companies that have more than 300 employees, and optional although recommended for companies that have less than 300 employees. INFONAVIT’s statements are optional in any case.

Despite this, it’s advisable that companies do Social Security audits. Here are some of the benefits:

  • Your company will avoid domiciliary visits from the correspondent institutions.
  • Settlement Cards will not be issued for differences in IMSS fees that come from the Verification System of Payments.
  • No extemporaneity in the presentations of affiliate notifications and salary movements.
  • Payments in up to 12 months for the differences that come from the statement.

The Social Security audits that we offer in VLH include the following services:

  • Statement before IMSS and INFONAVIT.
  • Preventive and corrective diagnosis of the fulfillment of obligations linked to the payment of staff’s remunerations.
  • Evaluation of the determination and presentation of work risk.

Contact us if your company needs a Social Security audit.

What exactly is an internal audit?

Learn the meaning, characteristics and benefits of internal audits.

Internal audits help a company detect, evaluate and solve problems, with the purpose of improving processes and achieving institutional goals.

This type of audits function as an internal control system, that through monitoring and politics, a company can protect its data, optimize its resources, decrease risks and become more profitable.

Although there isn’t a mandatory moment for a company to do an internal audit, it’s recommended that they are executed when the business is growing in volume. Because the bigger it is, the more control it needs.

It should be mentioned, that these audits have evolved until becoming a constant kind of consultancy. This is because through internal audits, a company can check all the operations of its areas. So if you are establishing your company in Mexico, you should consider doing an internal audit to make sure everything is working as it should be.

Who executes internal audits?

Internal audits are executed by professional auditors, that in an impartial and objective way, evaluate the internal processes of a company.

It’s important to mention that in these audits, the company itself is very important, since it has to facilitate all the required information to the auditors, so that they can perform a precise and truthful investigation.

What does an internal audit do?

  • Evaluation of fulfilment of plans and processes that come from management.
  • Review of accountable and financial
  • Inventory control and review of normative
  • Verification of veracity of the financial information of the company.
  • Reports of irregularities, risks and solutions.
  • Surveillance of fulfillment of the established recommendations.

What are the benefits of having an internal audit?

  • Implementation of politics, controls and monitoring.
  • Solid structure for the company.
  • Staff efficiency.
  • Early detection of risks.
  • Elaboration of contingency plans.

We are experts in internal audits. Call us if you want to evaluate the internal processes of your established company in Mexico.

The main differences between a financial audit and a tax audit

Do you know the most important characteristics of these two audits?

An audit is defined as the inspection and verification of the activity of a company or organization. These are executed with the objective of accomplishing the correct performance of a business. That’s why deficiencies (risks, frauds, mistakes), contingencies (fulfillment of obligations) and areas of opportunity are detected.

There are different kinds of audits, but mostly, they are divided in external and internal. External have to do with those external parties that affect a company in a direct way. While internal have to do with the operations of the company.

From all the existent audits, financial and tax audits stand out, and in some cases, may be confused. But the truth is, that they are quite different. If you are establishing your company in Mexico, you should know the characteristics of each.

Here are some of the main differences between these two important audits:

 

  • A financial audit is internal, which means that it’s implemented by the company itself. A tax audit is an external process; independent.
  • A financial audit consists on the evaluation of the economic operations of a company. A tax audit evaluates the company’s fulfillment before Mexican required taxes.
  • A financial audit is focused on the company’s finances. A tax audit is focused on the accountable results of a company.
  • A financial audit determines the situation of accounting books. A tax audit determines the tributary situation of the company.
  • A financial audit is executed by a private auditor. A tax audit is executed by a State official or a professional that has the fiscal auditor certification.
  • A financial audit is made at the end of the year. A tax audit can be made in any month of the fiscal year in Mexico.

In VLH, we have specialists on both kinds of audits. Contact us if you need to detect and resolve risks in your established company in Mexico.

Why do an IT audit in your company?

Discover why it’s vital that you perform an Information Technology audit for your business.

According to the Global Report of Norton Cybercrime, within a year, about 378 million users are victims of situations like reception of web viruses, account hacks, financial frauds and Identity Theft. It’s estimated that every 12 seconds, an internet user suffers some type of cyber-attack.

It’s important to mention, that the information losses that these attacks cause are equivalent to 113 thousand million dollars. From this incredible number, about 3 thousand million dollars belong to Mexico.

Cybercrimes happen, mostly, inside companies. Sadly, knowing this factor, only 65% of Mexican companies take data protection measures. So if you are establishing your company in Mexico, you should keep in mind why it’s vital to execute IT (Information Technology) audits.

Why are IT audits so important?

The truth is that we rarely stop and think about what cyber-attacks can cause. But the IT area has repercussions in all company areas, because it’s through these systems that an organization can carry out its daily operations.

It’s no secret that IT threats increase every day. That’s why controls, processes and security strategies should be endorsed by an impartial, objective and competent point of view, i.e., auditors.

How can an IT audit help a company?

When IT aspects are not correctly implemented, they can become a risk or a vulnerability. A systems audit can help identify and mitigate risks, by improving processes and reinforcing the internal control of companies.

What do IT audits evaluate?

  • IT structure.
  • Security of physical and logic information.
  • Technological infrastructure.
  • Development and maintenance of systems and/or applications.
  • Interfaces between systems and/or applications.
  • Data base administration.
  • Redundancy and recovering schemes.
  • Incidents.
  • Information back-ups.
  • Service to third parties.

What are the benefits of executing an IT audit?

  • Guarantying the integrity, reliability, availability and confidentiality of the processed information inside systems and/or applications.
  • Maximum advantage of resources.
  • Fulfillment of normative and international standards of IT.
  • Avoiding the use of unauthorized information.
  • Detection of frauds.
  • Continuous improvement.
  • Endorsing of the business’ continuity plans before possible disasters.

Need an IT audit in your company established in Mexico? Call us, we will make sure your company is safe and free of risks.