Experts Share Their Experiences within the Accounting Industry in Puerto Rico

Did you just graduate with a bachelor's in accounting? Are you worried about tax forms? You have technical skills, but you don't know what awaits you out in the field? Maybe you're an accountant interested in the challenges shared among your colleagues? You're not alone!

We recently interviewed a group of accountants in Puerto Rico and compiled the challenges they faced at the beginning of their careers, among other topics.

Find out what trials are shared among fellow CPAs throughout the years! 

Recurring Challenges in the Field of Accounting in Puerto Rico

What was your path to getting the position you are currently in?

• Albert Tamarez: “I was employed for eleven years by a local CPA company. I went out on my own in March 2011. By 2014, I had four employees. Today, there are seven. It is a slow but constant process.”
• Raquel Ortiz: “I started at a time when the field was more dominated by men. It wasn't easy. The first shock was during my interview, I don't know if it was supposed to be a funny moment, but the supervisor had told the person in charge of my interview that working with women was a problem. He ended up recruiting me and I ended up working with him until 2018, when he retired. I bought his participation in the practice. I had to give my all to achieve my goals.”
• Eugenio Lomba: “I had the experience of being let go from a company, which left me with the opportunity to reevaluate what I wanted. In July 2011, they fired me, and, eventually, little by little I was able to build a portfolio of clients and work for myself. I have worked for myself ever since.”
• Miguel Fonseca: “I had to go through a process of learning and gaining experience; working in other places before having my own practice. It was important to get the experience and see how everything worked before being on my own.”
• María de los Ángeles: “It's been more than thirty years. I started working in '85 at a firm. I kept advancing, I changed firms, and I came to Kevane Grant Thornton in '97 as a manager and in 2000 I was promoted to partner. I have been a member for twenty-three years now. It has been a journey filled with a lot of work. It's no secret that this is an industry where the hours are long. A lot of dedication and a lot of discipline. Always learning new things, after all, at university you learn the basics. I came in through taxes directly. Whereas before, the norm was to enter as an auditor.”
• Alejandro Méndez: “I have been in the industry for more than thirty years. Among the relevant factors, I gained experience in public accounting firms. I worked in the Department of Treasury, in different positions, such as Assistant Secretary of Internal Revenue. My experience in the Treasury Department, years of practice, and my work as a teacher guiding students in these programs led me to my current position, Senior Manager at the Alvarado Tax firm.”
• Rolando Lopez: “I was a partner in a firm for thirty years. I had worked in other firms before retiring from KPMG as a partner, where I used to oversee operations in Puerto Rico. From there, I moved on to doing consulting on my own. With my desire to formalize a relationship with a university institution, I came to Sagrado Corazón to teach an accounting class. Now, I am an academic leader there.”
• José Figueroa: “I am currently the owner of a firm where I share 50% with a colleague. When I first started my career as an accountant, I knew I didn't want to work in public accounting. I knew I wanted a private company, but my first job was as an internal auditor for a hotel in Rio Grande. I worked from 3:00 a.m. to 11:00 a.m., which allowed me to study for the CPA exams. As soon as I passed them, they gave me an opportunity at the firm where I currently work. I had worked here for twenty-one years until a year and a half ago, when my then boss decided to retire and give me and my partner the opportunity to buy the firm.”
• Lilliam Cedeño: “I finished a bachelor's degree in accounting at the University of Puerto Rico, Río Piedras Campus. I worked in the Department of Treasury - where I did my internship and worked there. Then, I went on to work for a private company. On the other hand, my dad always had a private company. I did a master's degree and continued working. In 2009, I made the decision to join my dad's company, as he was soon to retire. My sister and I stayed with the company. I started teaching full time and I have stayed between those two things ever since.”
• José A. Tort: “When I graduated, I worked for a private company for several years. From there, I jumped to another. I moved again to another one and, finally, from there, I set up my own firm in '97, and I am still there today.”

What are the most common doubts you had at the beginning of your career when preparing tax forms?

• Albert Tamarez: “The most common doubt will always be the change in contribution laws. In Puerto Rico, the rules and procedures change a lot.”
• Raquel Ortiz: “I originally came in for auditing, not for payroll, so I had several doubts. I took it upon myself to learn a lot about the payroll preparation processes. Up to this day, I try not to rely on programs.”
• Eugenio Lomba: “My main doubt was where were the numbers I saw in the documents going.”
• Miguel Fonseca: “Part of the doubts was how certain contributory treatments were handled for certain items. What is practiced is different from what is seen theoretically when you are studying. People who share their knowledge with you are crucial to helping you understand how certain things work.”
• María de los Ángeles: “Many. As I said, in college they prepare you for the basics. In the past, Income Tax Return was taught, the Individual one, no entities or anything else other than that. Nor did it focus on other forms that have to be processed nowadays, such as property tax, patents, etc. So, I would say that the biggest doubts were about the entity forms. At that time, there were no programs for this, so it added to the burden.”
• Alejandro Méndez: “It is an awareness of the law and what it means. One begins with some university studies, which are very important, but the truth is that to prepare a tax return, one must practice. Being in a firm and being supervised; you are going to learn through practice. One had to look for information and there was no better source than the law itself. The tax return instructions are not enough, since they are not a legal basis, it is a guide.”
• Rolando Lopez: “Identifying relevant information, identifying the items that had a different tax plan, and then all the preparation of the documentation that is required to leave a trace of what the final result presented on the tax form.”
• José Figueroa: “In the beginning, I worked for a year in the Treasury Department, in Payroll Review. I was always confused by the 1099, which is federal, and the 1080, which is local. Also, there used to be a "head of the family", having only one dependent... confusing little details, like what form was used for what.”
• Lilliam Cedeño: “My doubts were specifically on the corporate area. I worked on salaried individuals, but over time I moved to individuals with businesses and was able to gain experience until I managed to work the corporate part.”
• José A. Tort: “At first, it was much more complicated because I did not understand how the contributory system worked. The usual doubts; how the different items were supposed to be treated and how they are presented to complete the form.”

What challenges exist in accounting careers? How have you faced them?

• Albert Tamarez: “Accounting careers are dynamic. In Puerto Rico, they try to implement other control alternatives that are enforced in other markets, meaning Central America and the United States. In P.R., the process of carrying out any process is difficult, there is a lot of uncertainty."
• Raquel Ortiz: “In the area of Public Accounting, it is the constant law changes.”
• Eugenio Lomba: “The challenge is to be up to date with all the changes that exist, be them state-related, federal, and accounting-related. It is mitigated with continuous education.”
• Miguel Fonseca: “Among the challenges, is the complexity of the tax system in Puerto Rico.”
• María de los Ángeles: “From the perspective of Public Accounting, which is what I work on, it is the scarcity of resources and excess demand. Finding people who like this profession and who see it as a career, not as a step towards something else. Another challenge would be having to train new people all the time.”
• Alejandro Méndez: “The number of hours you must work. We must fight for a balance between our personal and professional lives. That will depend on time management.”
• Rolando Lopez: “The process of digitization and artificial intelligence that, little by little, has been taking over the processes of preparing tax returns...which has replaced the human hand, first mechanically, then digitally, and now intelligently. This presents the accountant with the challenge of how to add value or present themselves.”
• José Figueroa: “There are two big challenges. One is keeping up to date. After passing the CPA exams, they recommend you have 120 credits in continuous education. Before, I used to say to myself "What's the point?", but believe me, anyone who doesn't earn those 120 credits will not be up to date. The laws in Puerto Rico change constantly. Second, the challenge of keeping the taxpayer happy. They want you to prepare the forms for them, but they don't want to pay, so you must think about how to work each individual case.”
• Lilliam Cedeño: “I believe a lot in technology, and it is a good tool for accounting. However, I believe that young people who are graduating depend a lot on technology- and technology can fail. That's why I tell them that it is important to know the tax law, and how things are done. They shouldn't depend solely on technology. They should seek to acquire knowledge of things.”
• José A. Tort: “The biggest challenge is that you have to stay up-to-date, reading all the time because of the constant changes.”

What do you think are the benefits of working as an accountant and practicing your profession in Puerto Rico?

• Albert Tamarez: “Customer service. Keeping the client informed and offering a personalized service. The idea of including the client and making sure that they have visibility of everything is a priority.”
• Raquel Ortiz: “I don't think there is much difference in working as an accountant in Puerto Rico versus other places. Everything, including the treatment you receive, depends on the company you work for. A small company versus an international or large one is where you really see the change.”
• Eugenio Lomba: “There is a lot of work. The complexity of the requirements in Puerto Rico makes practicing here very different from working abroad. In other places, the work that we do, other governments do for the people (like in Spain).”
• Miguel Fonseca: “This depends on whether you are an accountant or a Certified Public Accountant (CPA). Being the latter, opened doors for me that perhaps I would not have had as an accountant alone.”
• María de los Ángeles: “I see it as an opportunity to support and influence the economic development of Puerto Rico. I see it as supporting the local individual by helping them continue with their business.”
• Alejandro Méndez: “I chose to work in accounting because I like it. Once you choose the profession you like, one that suits you, the path is much more bearable. Never mind the complexities I mentioned before. By doing my job well I contribute to Puerto Rico.”
• Rolando Lopez: “It has many benefits, such as the fact that there is a lot of demand. In fact, more demand than there is supply.”
• José Figueroa: “In addition to growing professionally, because I believe that one learns something new every day, I would say that the greatest benefit--and for me it is not professional--is the dynamic with the client because at the end of the day you end up being their family. It is very gratifying that you get to know them, that they give you the opportunity to get to know them beyond business.”
• Lilliam Cedeño: “We, in Puerto Rico, have the advantage that we master two languages - English and Spanish. I work with federal tax returns and I live in Puerto Rico, but I have many people who live in the United States that contact me to work on their taxes. In terms of accounting, there will always be a need for accountants. Ten years from now, you will have a job because the demand for accountants will remain.”
• José A. Tort: “A benefit of a career like this one is that you don't have to buy anything. With your own knowledge and with very little investment you can generate your work, and now, with the ease of working remotely, you can work from anywhere in the world.”

What are the most frequent questions you have or that your firm had this Tax Season?

• Albert Tamarez: “Some procedures with the Department of Treasury to present certain tax returns, how to understand the ideocracy of each municipality since each municipality has its own procedures.”
• Raquel Ortiz: “Some changes were very fast, and one could forget about them. The good thing is the consistency of having the same clients over the years.”
• Eugenio Lomba: “How to implement the changes that Law 52 brought.”
• Miguel Fonseca: “The filing dates, because from Hurricane María to the present time, we have not had a normal year. The changes are constant. In the case of municipalities, it would be the change of date and the unique and different requirements that depend on the municipality. There are 78 different books on how to file a Declaration of Business Volume. The extension request was something that created a lot of confusion this year, as the process changed from the previous year.”
• María de los Ángeles: “The new legislation and the forms not being up-to-date.”
• Alejandro Méndez: “The implementation of Law 52.”
• Rolando Lopez: “There are disastrous areas, such as accreditation. Every year it needs a small audit.”
• José Figueroa: “The Employee Retention Credit created many doubts, as did the Child Credit. People automatically go with what happened in previous years and the process of updating each client takes time.”
• Lilliam Cedeño: “In general, people called a lot about the Work Credit, the Child Credit, and the $400 – people calling to find out if they were eligible.”
• José A. Tort: “Common doubts were the Work Credit and whether clients were eligible for certain benefits.”

From the most common doubts to the elements that distinguish and define accountants in Puerto Rico, these experiences and advice were shared by a select group of accountants who offered a peak into what they face in their field.

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