How to put tax planning into practice?


It is more than clear that it is not feasible for the entrepreneur to develop tax planning on his own, right? After all, this is an activity that requires a lot of knowledge about accounting and legislation. Therefore, it is essential to have the support of good accountants, capable of playing a central role in the elaboration of tax planning. They will collect your company’s information, analyze scenarios, and apply different methods to save small business taxes.

Many companies failed to discover that their business model was impracticable when subjected to legality and taxes on their profit margin. So, the best tip we can leave you on how to put your tax planning into practice is to hire a quality accounting service.

The essential role of accounting professionals

Accounting, being a system of permanent records of transactions, is a pillar of tax planning. The basis for adequate tax planning is the existence of regular, reliable and updated data. The accounting office in this case is a fundamental part in the preparation and execution of tax planning. After all, he commands a series of internal operations for the company, usually being responsible for multiple controls, reconciliations and tax calculations. In addition, he cooperates or coordinates internal teams, knowing deficiencies and critical points that can generate failures in the execution of planning.

Now that you know how to do tax planning, you can achieve big savings in tax expenses and still minimize tax problems. Even with everything we talked about tax planning, this is precisely the point that companies neglect most, leaving to seek an accountant and settle only when despair hits. Choosing the appropriate tax regime is not an easy choice and should not be made without the help of an accountant.

Main advantages of tax planning                  

Tax planning does not end with this definition. Thereafter, the best practices to avoid extra expenses with the tax authorities throughout the year should be planned and transformed into a standard. The presence of the accountant at the beginning of the company, and not only when it is no longer possible to continue without him, is essential for the business to have the best chances of surviving and growing.

The advantages of tax planning are –

  • Reduces project costs
  • Avoids the occurrence of fines
  • Increases business competitiveness in the market
  • Allows for an effective annual budget
  • Allows the choice of an appropriate tax regime
  • Authorizes the elaboration of a tax calendar appropriate to the needs of the company
  • Modifies the way of carrying out corporate operations in order to generate savings
  • Allows the use of possible tax incentives
  • Defines more precisely the economic activity carried out in the company
  • Allows the simulation and analysis of scenarios that the business may experience.