This implies a higher operating cost, more time invested with a greater margin of error, and lack of a clear vision of the financial health of their businesses.
Since electronic accounting is mandatory for individuals with business activity and legal persons who bill more than 400,000 pesos annually, the owners of SMEs and their accountants have to invest more time and technological resources to meet their tax obligations.
This is a valuable time that could be invested in the growth of the business and therefore, would affect the macroeconomic numbers of the country. Recall that small and medium enterprises directly influence national productivity, since they account for just over half of GDP (52%) and generate 72% of jobs, according to INEGI.
In Mexico, the payment of taxes is a laborious process, since it involves many administrative tasks. In the last Financial Complexity Index of TMF Group, which classified 94 countries according to their complexity for accounting and tax compliance, Mexico ranked 15th and ranks first in complexity in "Accounting".
Although there are more and more SMEs that decide to automate their processes, there is still a large number -especially the smallest ones- that perform their accounting procedures and their invoicing manually. According to the INEGI, of the 4.1 million SMEs that exist in the country, only 300,000 use technology for their administrative management, that is, less than 10%.
In addition to the loss of time, manual processes can generate several problems:
1. Higher costs, currently Mexican SMEs use up to five different tools for their accounting and financial processes: Excel, online banking, billing software, accounting tool, paper, and pencil probably, in addition to accounting software used by the accountant, which implies more investment in time, labor and money.
The good news is that today there are integral technological solutions such as QuickBooks, which today is the only all-in-one platform in Mexico, aligned with the Mexican tax regulation for issuing invoices stamped and that resolves the issue of bank reconciliation. QuickBooks offers SMBs a comprehensive vision of their business helping them manage and control their finances in an agile manner, generating online executive reports.
2. Higher probability of committing human errors such as mishandling a data or doing an operation wrong. Systematization reduces the need for highly specialized accounting and financial knowledge, in addition to reducing human error.
3. Loss of information, because many of the SMEs that keep their accounts manually only record the data once (replicating the information would take twice as long). What if the information is lost? The cost of data loss for SMEs is just over 2 million pesos on average, according to computer security firm Kaspersky Lab.
4. Manual data management. Relying on accounting and business management software reduces the possibility of manipulating data. The use of this type of tools and the access to the correct information, avoid to the owners of the legal problems in addition to facilitating the taking of opportune decisions for their businesses.
Another advantage of the technology is that, since the appearance of cloud computing and new forms of data storage, the costs of technological solutions have decreased by almost 400%, according to the Organization. Economic Cooperation and Development (OECD). This has made the technology very accessible for SMEs.
SMEs in Mexico have great challenges to be more competitive in the global business environment. On the one hand, the fulfillment of its financial obligations in time and form, and on the other, the increase of its productivity. This highlights the importance of adopting the best technological solutions that allow them to automate processes, reduce the margin of error and above all, optimize the time invested in their administrative management to spend more time with clients or promoting their company.