In their infinite and constantly increasing wisdom, the powers that be at the Secretaria de Hacienda y Planeacion (SHCP) known simply as 'Hacienda' established a rule that said you can not declare as a legitimate expense any expense that reaches or exceeds $2000 pesos if you paid for it in cash. This ingenious little rule will somehow make the country less prone to tax evasion and help the 30% of Mexico that pays taxes pay more taxes either directly or in fines and therefore support the other 70% that pays no taxes whatsoever.
Let's say you are buying something in Costco and the bill comes to $1999.99. That's OK, you can pay in cash. But if it comes to $2000.01 then you must pay with a company check.
There are a couple of ways around this little rule, none of them particularly illegal (check with your accountant though, don't take my neurotic word for it):
- Let's say you have $7000 pesos worth of goods you have bought for your business. You ask the cashier, or the person who is making up your invoice, to split the purchase into several separate purchases with each invoice totaling less than the $2000 peso total. This way you can pay for them in cash (petty cash) and then issue a check later for reposition of petty cash. This helps because if you want to pay by check in some of these places, it's a pain in the butt since you will need to have extra paperwork done in the case of Sam's Club or Costco, for example.
- The other way is to pay your $7000 in cash; then make the check, and it's accompanying poliza* out separately. Make the check out to yourself, but on the poliza make it look like the check was paid to the company in question.
The poliza is the copy of the check that must accompany each and every check in your accounting records and contains all the information on the check. It's usually green which is another bit of completely useless information.