Ecuador’s steadily-growing economy supports a flourishing financial technology (Fintech) industry and other new business models. In order to keep up with emerging technologies in this and other areas, its government constantly reviews its relevant legal framework.
Professional accounting services in Ecuador are in hot demand as the government implements constant changes to commercial and investment regulations. These constant and sometimes conflicting changes require local and foreign investors to source knowledgeable local accounting experts.
Read on to learn the value of Ecuador’s accounting services in protecting your business against the risk of constantly-evolving domestic financial regulations.
An attractive economy for foreign investors as explained by our Accounting Services Team
Ecuador is the eighth largest economy in Latin America. In 2015, in response to a stall in Ecuador’s oil industry, then-president Rafael Correa made several regulatory changes to pull the economy out of its slump. Since the recession, the economy bounced back to a 2.4% growth rate in 2017, according to the World Bank.
Foreign direct investment (FDI) is lower in Ecuador compared to other Latin American markets, but most sectors are open to foreign investment. Ecuador’s government recognizes that foreign investment contributes to sustainable growth and poverty reduction.
Ecuador therefore continues to attract FDI. Further to this, the government also signed several contracts with multinational petroleum companies, passed a public-private partnership law, and altered tax and regulatory policies for mining to further open its doors to foreign investors.
Constant (and sometimes conflicting) changes pose a challenge for businesses
Ecuador is committed to continuously improving the quality of its financial reporting and auditing standards. However, frequent and sometimes contradicting changes in commercial and investment policies pose a challenge for businesses in staying above board. At times, the country’s judicial system also struggles to operate independently of political and economic pressures.
Without close attention being paid to changes in these standards, businesses are at risk of costly compliance failures. Thankfully, Ecuador’s professional accounting services can take the burden of compliant, up-to-date financial reporting off the shoulders of foreign companies.
Good accounting practices speak to the credibility of your Ecuador business
Having a dependable accounting service that stays abreast of all of the changes in regulations is critical for business success. By outsourcing accounting services, investors and stakeholders can maintain a high level of confidence in the financial reporting and auditing standards of the company.
It’s no surprise then that enterprise financial management is the quickest-growing sector of the financial technology (Fintech) industry in Ecuador. This gives businesses easy access to vital, high-quality accounting service.
Rest assured with comprehensive local financial expertise
Local accounting professionals are vital in Ecuador’s changing legislative environment because they have the know-how to go beyond their traditional roles in financial reporting. Their adaptability has meant they can also act as advisers in the decision-making processes of the organization.
This expertise outside of day-to-day accounting and finance operations is a valuable asset to businesses in Ecuador. Not only can investors feel safe in the hands of local financial experts, but they also receive the added value of consulting advice in the company formation process.
As Ecuador’s economy grows, so does the pool of quality accounting services
Ecuador has implemented strong regulatory measures to ensure doing business remains worthwhile for investors in the long term. The financial sector has adopted auditing and ethical standards of internationally acceptable quality. Ecuador’s economy continues to grow as a result of this bolstered legal framework.
As technological innovation, disruption and entrepreneurship flourish in the market, so too does the breadth of experience in Ecuador’s accounting profession. Emerging technologies will push the government into continuous reviews of its supporting legislation. This means that quality accounting services will remain a priority for any foreign business entering the market in Ecuador.
Reach out for advice
Our team of local and overseas experts at Biz Latin Hub offers a comprehensive range of professional multilingual market entry and back-office services to ensure your company’s success in Latin America.
Find out more about our accounting services and how we can help you do business in Latin America in our video below.