Fractional CFO for an International Retreats and Events Business

July 8, 2024

Condesa was engaged by a US company with real estate and hospitality operations throughout Mexico. To date, the Client had significant issues regarding its existing legal structure related to the entity type of its US holding company and dependency on partnership agreements with related third parties in Mexico. Condesa was engaged in a Fractional CFO capacity to execute a comprehensive international tax and legal restructuring and to implement robust accounting and FP&A procedures going forward.

While overseeing the Tax & Legal Structuring procedure and preparing for dissolution of the existing US company, Condesa focused on cleaning up all historical accounting. Once the appropriate structure had been determined for a US holding company and Mexican operating subsidiary, Condesa brought in our legal partners in the US and Mexico to form the new entities and dissolve the old one. Working with our tax partners, Condesa was able to implement strategies to save the Client significant tax expense by properly recognizing and realizing Net Operating Losses from prior accounting periods.

With the new international legal structure in place, Condesa immediately shifted focus to implementing the appropriate accounting systems and procedures.  Our firm leveraged Quickbooks Online in the US and CONTPAQi in Mexico and established all appropriate procedures for monthly compliance with the SAT (Mexican taxation authority).

Additionally, Condesa created the appropriate FP&A tools for the client to forecast revenue and expenses, according to hospitality industry best practices.  By disaggregating revenue (and related product costs) into its components, the Client was able to understand and optimize their pricing and forecasting.  These forecasts were leveraged to create informed Hospitality Management Agreements with the Client’s real estate holdings partners.

Condesa’s tax partners have been engaged to provide tax returns for the Client’s business entities as well as their personal tax filings.

Services Provided:

• Fractional CFO
• Accounting & Bookkeeping
• Accounting System (Setup)
• Historical Cleanup
• Tax & Legal Structuring
• Tax Return (Referral to Partner)