Tax management for entrepreneurs
Posted: Mon Jan 20, 2025 8:40 am
Tax management is a set of administrative actions and procedures aimed at complying with tax laws. In other words, this management is responsible for tax obligations, tax bookkeeping and tax payments.
Before we delve deeper into the subject, it is important to know that there are two types of tax obligations in the country:
Main tax obligation: linked to the calculation and payment of taxes such as fees, duties and contributions;
Additional tax obligation: related to the issuance of tax documents, recording of documents and a series of data that must be declared to the Federal Tax Authority (the body that controls and monitors the collection of taxes nationwide).
Since Brazil has a high tax burden and its regulations are somewhat complex, many entrepreneurs end up getting into trouble and causing losses to their business . Ideally, you should have at least a basic knowledge base to avoid making the wrong decisions.
With this in mind, we have written this article to explain the main benefits of tax management and how to do it efficiently. Check it out!
What are the main benefits of tax management?
Provide accurate information to make better decisions
When you adopt a tax management routine, you are honduras phone number lead aware of your obligations, know how to apply them, and withhold and certify what is due. All of this prevents you from having surprise tax expenses in the future.
Furthermore, when you have control over your finances, you can predict everything that comes in and where the resources go. This makes it easier to make decisions and ensure the financial health of your company.
Assist in collecting taxes
Managing your taxes helps you understand whether the taxes to be collected are in accordance with your type of regulation and whether they are collected within the given deadline. For example, there are companies that can reduce their expenses by applying for the Presumed Profit regime and, due to lack of information, end up opting for the Real Profit regime, incurring extra expenses.
Keeping the business formal
To avoid high taxes and have a good profit margin, many businesses operate clandestinely, without paying attention to tax legislation. Adopting tax management is an option to avoid putting your project at risk, avoid fines and avoid the risk of falling on the radar of the Federal Police.
Save on taxes
In addition to collecting taxes correctly, when managing your company's taxes, you will be able to choose the correct tax regime and avoid expenses with extra tax burdens, which directly impacts your profit.
tax management
Tips for efficient tax management
Keep an eye on tax obligations
Companies have a large number of tax obligations, especially those in the retail sector. Keeping everything organized and under control is the first step towards effective tax management. This process makes your obligations more rational and easier.
Make good tax planning
Entrepreneurs who do not take tax aspects into account in their management can put all stages of the business's production at risk. According to the IBGE (Brazilian Institute of Geography and Statistics), around 50% of companies close their doors in less than three years due to poor tax planning.
Therefore, it is necessary to put everything down on paper: tax charges applicable to business activities, additional obligations, as well as the creation of a reserve that can cover any problems.
In our legal entity spreadsheet, we include all tax obligations, so you can include tax management in your planning . Download it now for free:
[BANNER]
Research tax benefits
In order to stimulate a specific activity or sector, the government often grants tax benefits to certain companies. These benefits include the right to a reduction in tax rates, compensation, and exemption. Therefore, it is crucial that entrepreneurs are aware of tax benefit policies and the possibility of using them.
Choose a suitable tax regime
Simples Nacional, Presumed Profit or Real Profit? By choosing the wrong tax regime, the company may pay more taxes and still be considered illegal in the eyes of the IRS. In addition, a company's tax situation may change from one year to the next.
Therefore, it is ideal for entrepreneurs to carry out periodic tax planning to know which models are applicable and which is the most appropriate. And it is not enough to analyze in general terms. Taxpayers need to look at the numbers closely and evaluate which is the best choice and which will bring the best results.
Before we delve deeper into the subject, it is important to know that there are two types of tax obligations in the country:
Main tax obligation: linked to the calculation and payment of taxes such as fees, duties and contributions;
Additional tax obligation: related to the issuance of tax documents, recording of documents and a series of data that must be declared to the Federal Tax Authority (the body that controls and monitors the collection of taxes nationwide).
Since Brazil has a high tax burden and its regulations are somewhat complex, many entrepreneurs end up getting into trouble and causing losses to their business . Ideally, you should have at least a basic knowledge base to avoid making the wrong decisions.
With this in mind, we have written this article to explain the main benefits of tax management and how to do it efficiently. Check it out!
What are the main benefits of tax management?
Provide accurate information to make better decisions
When you adopt a tax management routine, you are honduras phone number lead aware of your obligations, know how to apply them, and withhold and certify what is due. All of this prevents you from having surprise tax expenses in the future.
Furthermore, when you have control over your finances, you can predict everything that comes in and where the resources go. This makes it easier to make decisions and ensure the financial health of your company.
Assist in collecting taxes
Managing your taxes helps you understand whether the taxes to be collected are in accordance with your type of regulation and whether they are collected within the given deadline. For example, there are companies that can reduce their expenses by applying for the Presumed Profit regime and, due to lack of information, end up opting for the Real Profit regime, incurring extra expenses.
Keeping the business formal
To avoid high taxes and have a good profit margin, many businesses operate clandestinely, without paying attention to tax legislation. Adopting tax management is an option to avoid putting your project at risk, avoid fines and avoid the risk of falling on the radar of the Federal Police.
Save on taxes
In addition to collecting taxes correctly, when managing your company's taxes, you will be able to choose the correct tax regime and avoid expenses with extra tax burdens, which directly impacts your profit.
tax management
Tips for efficient tax management
Keep an eye on tax obligations
Companies have a large number of tax obligations, especially those in the retail sector. Keeping everything organized and under control is the first step towards effective tax management. This process makes your obligations more rational and easier.
Make good tax planning
Entrepreneurs who do not take tax aspects into account in their management can put all stages of the business's production at risk. According to the IBGE (Brazilian Institute of Geography and Statistics), around 50% of companies close their doors in less than three years due to poor tax planning.
Therefore, it is necessary to put everything down on paper: tax charges applicable to business activities, additional obligations, as well as the creation of a reserve that can cover any problems.
In our legal entity spreadsheet, we include all tax obligations, so you can include tax management in your planning . Download it now for free:
[BANNER]
Research tax benefits
In order to stimulate a specific activity or sector, the government often grants tax benefits to certain companies. These benefits include the right to a reduction in tax rates, compensation, and exemption. Therefore, it is crucial that entrepreneurs are aware of tax benefit policies and the possibility of using them.
Choose a suitable tax regime
Simples Nacional, Presumed Profit or Real Profit? By choosing the wrong tax regime, the company may pay more taxes and still be considered illegal in the eyes of the IRS. In addition, a company's tax situation may change from one year to the next.
Therefore, it is ideal for entrepreneurs to carry out periodic tax planning to know which models are applicable and which is the most appropriate. And it is not enough to analyze in general terms. Taxpayers need to look at the numbers closely and evaluate which is the best choice and which will bring the best results.