Tax compliance is a must-do for all companies taking their businesses abroad. For instance, if you open subsidiaries in Mexico, you must familiarize yourself with the tax requirements for the region. However, with so much going on, most firms struggle to stay on top of their taxes, yet the consequences of non-compliance can be far-reaching.
From penalties to hefty lawsuits, failure to monitor taxes can threaten to ruin a firm’s bottom line. Most companies leave tax matters to their accountants, but even the most experienced staff can miss a thing or two. So how do you keep track of your taxes and avoid pitfalls due to ever-changing regulations? Simplify the job. Leverage technology!
What is Oracle NetSuite?
Organizations leverage Oracle NetSuite Cloud ERP to monitor their finances, do enterprise resource planning (ERP), keep track of inventory, and set up online retail stores. This versatile solution helps businesses accomplish multiple tasks simultaneously.
For example, its tax feature, SuiteTax, helps businesses comply with complicated tax management and reporting issues. SuiteTax helps you automate your tax calculation saving your accountant the manual hassle that could lead to grave mistakes. In essence, it handles all the complicated tax work, allowing your staff to focus on other important matters.
What is LatamReady SuiteApp?
Last May, LatamReady announced the rollout of new tax compliance features for the LatamReady SuiteApp. This solution was specifically tailored to help international companies running Oracle NetSuite comply with tax requirements in the Latin American region. It is Built-for-NetSuite and works with SuiteTax solution for Mexico.
For most companies using NetSuite (and running branches overseas), the big challenge is how to manage their taxes across the border using their favorite tool. Now businesses can use the Oracle NetSuite + LatamReady SuiteApp. Since its launch, the LatamReady SuiteApp enables tax compliance in more than 18 Latin American countries.
Here’s what its makers have to say about the solution:
“Many international corporations running NetSuite try to enter the Latin American marketplace without the right set of tools. Inevitably, they trip over the complex tax compliance regulations found in Brazil, Mexico, and across the region. The LatamReady SuiteApp is the key to unlocking success with NetSuite in Latin America.” – Carlos Zumaeta, LatamReady CEO and Founder.
How to Avoid Tax Challenges with NetSuite & LatamReady SuiteApp in Mexico
So what are some of the tax challenges and how can this integrated solution help businesses running subsidiaries in Mexico manage their taxes?
1. Stay up to date with monthly/annual changes
The SuiteApp stays up to date with all per-month and yearly tax reporting forms simplifying compliance with local tax regulations in Mexico. Using the latest tax papers is important in keeping a clean tax record in the event of an inspection.
2. Confirm your tax info before submitting it to tax authorities
The solution also comes with a set of ten reports engineered by LatamReady. The reports include ten unofficial reports that help users review and confirm legal data before sharing the info with their local tax authority.
3. VAT transfer & Account Redirection
In Mexico, accountants are expected to update Sales/Purchases based on local regulations to state if a transaction is Collected/Paid or Billed/Registered.
Other important pieces of information include:
- Related taxes
- Payment avenue (Cash/Credit)
- Origin of Customer (Local/Foreign)
The LatamReady SuiteApp (certified by NetSuite) helps you address these many native requirements thanks to its solutions that allow users to:
- Deduct Value-added Tax from Purchases/Sales
- Redirect tax accounts
4. Get regional exchange rates automatically within NetSuite
LatamReady allows you to connect to the local National Bank in Mexico (BANXICO). That way, you can autonomously track the daily currency exchange rate. This feature is active for transactions such as bills, invoices, and credit memos.
5. Link with a tax agency
You can now connect with the official tax agency in Mexico. The NetSuite + LatamReady SuiteApp solution links with tax agencies in each country that uses its service. In Mexico, you will link with SAT (Servicio de Administración Tributaria).
6. Withholding taxes
For most businesses, the challenge is to collect the withholding tax. This all-inclusive solution supports the withholding taxes for nearly all types of transactions, from regular payments to Credit Sales.
Unlock the Potential of Integrated Solutions
Oracle NetSuite + LatamReady is a game-changer in the tax space. Businesses looking to set foot in Mexico can now leverage this all-inclusive solution to remedy several tax compliance challenges. Building all the local solutions a business needs into LatamReady SuiteApp and integrating it with the already-capable NetSuite simplifies everything while reducing the likelihood of costly mistakes.