Two Currencies, One Ledger
Many El Paso businesses take payments in dollars and pesos, pay suppliers on both sides of the border and deal with affiliated companies in Mexico. Their books need to handle all of that without confusing the U.S. return or the Texas franchise tax report. BOMCAS keeps monthly books for El Paso businesses remotely, reconciling every account and closing each month with reports in U.S. dollars.
Our Texas bookkeeping page has the general routine. This page deals with pesos, intercompany accounts and export records in El Paso.
Peso Accounts and Exchange Rates
A business with a peso bank account or peso receipts records each transaction at the exchange rate on that date and revalues balances at month end. The difference is a foreign exchange gain or loss, which is reported separately from sales and expenses. Cash taken in pesos at a store should be counted and converted daily. We choose a reliable rate source and apply it consistently.
Intercompany Accounts With Mexican Affiliates
When the El Paso company buys materials for a plant in Juárez, provides services or receives assembly work, each charge needs an invoice, a matching entry on both sides and periodic settlement. Unsettled balances that grow for years can look like loans or capital contributions, with tax consequences. We reconcile intercompany balances monthly and keep the invoices that support transfer pricing.
Customs Broker and Forwarder Trust Funds
Brokers receive money from clients to pay duties, fees and freight. Those funds should be held in liability accounts and matched to each entry, not counted as income. We reconcile client deposits to payments so the broker's own revenue is clear and any unapplied funds are visible.
Export Records for Sales Tax
Retailers and distributors claiming the export exemption need records that link each exempt sale to its export certification or shipping proof. We keep a monthly report of exempt export sales and the supporting documents so the sales tax return can be defended in an audit.
Contractors at Fort Bliss and in New Mexico
Contractors need costs tracked by contract and by state. Labour, materials and equipment used on the New Mexico side need to be visible for gross receipts tax and income tax there, and federal contract costs need direct and indirect pools. We set up the job and class structure before the first invoice.
Property Tax and Inventory
The El Paso Central Appraisal District expects business personal property renditions by April 15. Inventory destined for Mexico may qualify for the freeport exemption if it leaves Texas within 175 days and the local taxing units allow it, but only with records showing what left and when. We keep inventory and shipment reports that support the application.
Cross-Border Freight and Fuel
Trucking companies that haul between El Paso and Juárez buy fuel, tolls and repairs on both sides and often pay drivers per trip. Receipts in pesos need converting, International Fuel Tax Agreement records need miles by jurisdiction, and equipment registered in Mexico may belong to an affiliate rather than the U.S. company. We keep trip, fuel and equipment records separated so the books support both the return and the fuel tax filings.
Bridge Retail Cash
Stores near the downtown bridges can take a large share of their sales in cash, often in both currencies, with busy weekends and holiday peaks. Daily cash counts, deposit matching and a clear record of peso exchanges protect the business in a sales tax audit, where unexplained differences between sales and deposits are a common source of assessments.
Each Month
- Reconcile dollar and peso accounts.
- Revalue foreign balances.
- Match intercompany charges and settlements.
- Track broker trust funds.
- Report export sales and shipments.
- Prepare reports in U.S. dollars.
El Paso Bookkeeping Questions
How do you record peso transactions?
At the exchange rate on the transaction date, with month-end revaluation and separate exchange gains or losses.
Why reconcile intercompany balances every month?
Old unsettled balances can be treated as loans or capital, and monthly records support transfer pricing.
Are client funds held by a customs broker income?
No. They are liabilities until paid out for duties, fees and freight.
Can inventory headed to Juárez avoid property tax?
It may qualify for the freeport exemption if it leaves Texas within 175 days and the records prove it.
Talk to BOMCAS About Bookkeeping in El Paso
Month-end figures feed sales tax and export reports, payroll, the business return and owners' personal returns, and support planning for the group. Years without records start with catch-up filing, and Mexican affiliates call for cross-border reporting. Our state pages on business returns, individual returns, sales tax, payroll, planning, catching up and international filings explain the Texas rules away from the border, and the Texas overview summarises them.
Tell BOMCAS about your El Paso company or household and we will explain what we would do first and which papers would let us quote. Reach us through the contact page or the form below, call 780-667-5250 or email info@bomcas.ca. Every El Paso service is on the El Paso overview. This page offers general information only, not advice for your case.