CPA in Mexico refers to a certified public accountant, a person who has gained an in-depth knowledge in the accounting profession. Unlike a simple accountant, the CPA is entitled to provide his or her services to public institutions and to handle complex accounting procedures, such as audit or management consulting.
The area of expertise of a CPA in Mexico is highly recommended for large companies; for small and medium-sized companies an accountant in Mexico is sufficient, as he or she will have the basic knowledge to handle not very complex accounting procedures required for such companies.
However, this does not imply that the accountant in Mexico is a person who doesn’t have a proper education; on the contrary, all accountants have the required studies, in accordance with the level of expertise required for each category of accountants. If you want to set up a company in Mexico, you can address to us in the case you want to hire a local accountant.
What are the requirements for becoming a CPA in Mexico?
The profession of an accountant in Mexico City or of another one working in another part of the country is regulated under the same law. All accountants are required to have at least a bachelor degree in order to be able to be hired as accountants. The licenses issued for accountants fall under the supervision of the Ministry of Education.
Persons who have become accountants can join one of the various accounting associations that are set up across the country based on a voluntary registration, but in most of the cases, there aren’t any particular requirements that such members have to comply with, outside being a tertiary education graduate.
|What is a CPA||A CPA is a type of accountant that has a broader specialization in the field of accountancy and who has obtained a license to provide professional accounting services.|
|Areas of expertise of a CPA in Mexico||Accounting, taxation, business knowledge, management, audit|
Minimum requirements to become a CPA
|License required (yes/no)||Yes|
|Institution issuing licenses||Ministry of Education|
Regulations of the Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos), the Code of Ethics prescribed by the institution.
of a CPA
Advising the representatives of a company in making a financial decision, calculating the tax returns, analyzing and preparing the financial reports of the company, conducting forensic accounting, etc.
|Types of companies that should select the services of CPAs||Medium-sized and large companies|
|Main institution to regulate the activities of Mexican CPAs||Mexican Institute of Public Accountants (Instituto Mexicano de Contadores Públicos)|
|Accounting standards for public institutions||Governmental Accounting Standards|
|Types of accountants
|The CPA in Mexico (Certified Public Accountant),
the chartered accountant.
|The average salary of an accountant in Mexico||$264,000 per year|
|The average salary of
a CPA in Mexico
|$375,000 per year|
|Institution in charge with imposing disciplinary penalties||The National Insurance and Surety Commission and the National Banking and Securities Commission|
|Institution in charge with imposing civil and criminal penalties||The Internal Revenue Department|
However, for those who will become a CPA in Mexico, the registration with the institution regulating this profession and representing its interests, is bound by complying with a set of strict rules and regulations, as the CPAs have a higher level of responsibility.
Those who will become CPAs can register with the Mexican Institute of Public Accountants, which is a part of the International Federation of Accountants. If you want to open a company in Mexico and you will request the services of a CPA, you will know that the said person will comply with certain standards.
What is the legal framework for an accountant in Mexico?
All professions, including the one of our consultants in company formation in Mexico, are regulated under specific rules of law. Such services providers will fall under the supervision of specific institutions, which will make sure that the rules and regulations are followed as necessary. With regards to this of activity, the following apply:
- the country has set up the Mexican Board for Research and Development of Financial Reporting Standards on 21 August 2001;
- the Article 5 of the Mexican Constitution stipulates that the Mexican Institute of Public Accountants, the entity that regulates the activity of a CPA in Mexico, can establish the auditing standards for local entities;
- rules regarding financial procedures are also prescribed by the General Law for Commercial Enterprises 1934 (of interest for those who want to start the process of company formation in Mexico);
- please mind that since 2014, non-regulated companies are no longer required to request the services of an accountant in Mexico for the purpose of carrying out an audit;
- companies that have a gross income of at least MXN 100 million and assets of MXN 79 million can request a CPA in Mexico to prepare a financial report that will be submitted with the tax authorities.
Is there a code of ethics for an accountant in Mexico?
This depends on the type of accountant one is. Those who work as accountants do not have to follow a specific code in order to carry out their profession, outside the basic rules of law that regulate the profession and the rules of law for carrying the accounting procedures; they are rules enforced under the local law, but they do not represent a code of ethics.
Just like our team of consultants in company incorporation in Mexico, regular accountants simply have to obey the law. Thus, a person working as an accountant in Mexico City, providing accounting services to a local company, will not be required to adhere to additional rules.
In the case of those who are part of the above mentioned institution, so those who are CPAs, there is the obligation to follow a code of ethics. If you need to know more on what type of accountant will be best for your business once you have completed the process of company registration in Mexico, our consultants remain at your service.
A code of ethics applies, more or less, to all categories of accountants in Mexico, regardless of their attributions. However, for persons who develop simple accounting activities, the ethics of their profession is regulated under the accounting law.
This is because the activity is not very complex and does not need a complex set of rules of abide by. Additional rules and regulations appear for complex accounting activities.