5 Pillars of tax management for secure processes
In the digital age, where agility and precision are imperative for business success, tax tax management emerges as a key element for sustainability and growth. Complying with fiscal and tax laws is a constant challenge, even more so in a challenging as Brazil's.
A complexity of Brazilian legislation is recognized internationally. A recent study by the Getúlio Vargas Foundation (FGV) points out that Brazil applies the highest tax fines in the world, ahead of major powers such as the United States, France and the United Kingdom.
Another alarming statistic is the number of tax regulations in the country: there are more than 320 thousand. It's as if 46 new rules are created every working day of the year, according to the Brazilian Institute of Planning and Taxation.
Despite the fact that business management has come a long way in the last 20 years with the emergence of ERPswhich allow the integration of areas and sectorsinto a single piece of software, developments in terms of automation tax management is still a lesser-known scenario, but one that is crucial for the sustainable growth of a business.
Fiscal management not only covers compliance with tax obligationsbut also the identification of opportunities for legal tax savings through an appropriate tax strategy. This requires in-depth knowledge of tax legislation, as well as accounting and financial practices.
In this article, we'll learn more about tax management and its main pillars, and how automating this process has had an impact on productivity and cost savings for different types of business.
What is fiscal management?
Fiscal management is a strategic within the business environment that focuses on efficient administration tax aspects of an organization. It encompasses a series of practices and processes designed to ensure compliance with tax laws, as well as optimizing the company's tax burden.
In general, these practices aim to optimize tax paymentsavoiding tax liabilities and fines that can result from non-compliance.
An effective approach to tax management goes far beyond simply calculating and paying taxes: it involves an in-depth analysis of the company's financial operationsthe search for opportunities for tax savings and the implementation of practices that minimize risks and ensure transparency.
One of the central elements of fiscal management is thorough knowledge of tax legislation. Specialized professionals must be up-to-date on the constant changes in tax laws and regulations, adapting quickly to ensure legal compliance.
In addition, the strategic use of technology plays a crucial role, enabling the automation of processes, the secure storage of tax data and the generation of accurate reports, speeding up operations and reducing errors.
This is why company tax management is usually associated with the use of ERPsthe business management software which integrate all communication between areas and reduce the errors that commonly occur due to miscommunication.
In the case of SAPERPs, responsible for some of the best-known software on the market, it is common for tax management to be improved through integration with the Tax Declaration Framework (TDF), a component designed to help organizations deal with the complexities and tax regulations that can vary significantly between different jurisdictions and countries.
However, in countries with more complex legislationSAP TDF may not cover 100% of obligations. In Brazil, for example, it only covers 15%, which leads many companies to look for complementary tax solutions. complementaryin order to automate tax management from start to finish.
A Cast group, a technology company that has been operating in the Brazilian market for over 30 years, has developed its own own solution that works in a totally integrated ERPs with more agility and simpler technical architecture than TDF.
O SOFICOM automates 100% of business tax processes, allowing federal, state and municipal obligations to be fulfilled in the same interface at the same time.
What are the pillars of fiscal management?
Efficient fiscal management is based on essential principles that ensure compliance and optimization of resources. These pillars are vital to an organization's financial health and sustainability.
Get to know them below.
In-depth knowledge of legislation
A thorough understanding of tax legislation is the foundation of efficient tax management. Keeping up to date with the constant changes and legal nuances is crucial to avoiding penalties and ensuring that the company is compliant.
Tax management professionals should invest in a solid knowledge of tax lawsadapting quickly to changes and anticipating impacts on the business.
A Complementary Tax Solution from Cast group also appears as an alternative in this scenario, as it is updated automatically whenever a new standard is published.
Technology as a strategic tool
Technology has become an indispensable ally in modern fiscal management. Specialized software enables automation processes, making it easier to collect, analyze and store tax data accurately and efficiently.
In addition, integrated systems provide a holistic view of financial operations, helping in strategic decision-making and identifying opportunities for optimization.
Strict control of accessory obligations
Compliance with ancillary obligations is often underestimated, but its importance in tax management is undeniable.
Accessory obligations are complementary, secondary or accessory obligations that companies have towards tax and regulatory bodies. They are documents or information that organizations need to submit, in addition to their main obligations, in order to comply with the legal and regulatory standards related to the tax area.
Keeping a detailed and always up-to-date record of ancillary obligations, such as DCTF, EFD-Reinf, eSocialamong others, is essential to avoid penalties and ensure that the company is compliant.
Once again, automation plays a crucial role in simplifying these processes and reducing errors.
Strategic tax planning
Strategic tax planning is one of the most proactive of tax management. It involves careful analysis of operations operations to identify legal opportunities for tax savings.
This process aims to minimize tax impacts, optimizing the company's tax structure in an ethical and legal manner. Well-designed tax planning can result in significant savings.
Regular internal audits
Internal auditing is the last line of action in tax management, ensuring that all practices and processes are compliant. compliance with established policies.
Carrying out regular audits helps to identify potential problems before they become crises, ensuring the transparency and integrity of the company's tax processes.
This practice not only reduces risks, but also strengthens trust of stakeholders in the organization.
What are the benefits of fiscal management?
Efficient fiscal management is fundamental to financial health of any company. Firstly, because it enables compliance with legislation, ensuring that the company fulfills all its tax obligations and avoids fines and penalties.
In addition, the detailed analysis provided by tax management allows for greater financial controlin which income and expenses are carefully monitored, helping to make more informed and assertive decisions. Managers can identify possible savings, such as taking advantage of tax credits and tax incentives.
In the long term effective tax management improves the structuring of tax planning, which can legally reduce the tax burden through tax avoidance strategies. This has a positive impact on company's cash flow.
Another benefit is improved relationship with investors and financial institutions. A fiscal transparency raises the confidence of stakeholders and can result in better financing conditions, as it demonstrates the company's seriousness and commitment to managing its resources.
Finally, automating tax management processes also improves operational efficiencyfreeing up staff time to focus on strategic activities. This makes it easier to carry out strategic financial planning, anticipating tax obligations and identifying investment opportunities.
A practical example of this is what happened at MASTERBOIa Brazilian meatpacking giant. By fully automating tax management, they saw an increase of 90% increase in productivity productivity, according to Letícia Santos, the company's project coordinator.
How to implement the pillars of fiscal management?
Efficient fiscal management efficient requires synergistic action between training, technology, processes e human expertise. These elements underpin organizations' fiscal and tax operations, providing compliance and optimizing resources.
Below is a step-by-step guide to help your company implement efficient tax management.
Investing in training
Companies should invest in continuous training of their employees. Specific courses and training on tax legislation allow staff to keep up to date with the constant regulatory changes, minimizing the risk of errors and penalties.
Without a thorough understanding of the tax rules in force, it is difficult to adopt proactive strategies and ensure compliance.
Adopt integrated technologies
The implementation of integrated tax management systems is crucial for processing large volumes of data accurately. Technologies such as ERPs help automate repetitive tasks and reduce the chances of inconsistencies in tax records and returns.
Complementary softwaresoftware, focused exclusively on fiscal and tax management, may also be necessary to fulfill all obligations quickly and efficiently.
Establish internal processes
The creation of well-defined internal processes is essential to ensure consistency and effectiveness in fiscal management.
This includes clearly defining responsibilities, a documentation procedures and the creation of workflows that enable efficient implementation of tax practices. Robust processes minimize risks and ensure continuous compliance.
Hire specialized professionals
Having a team made up of professionals specializing in tax management is essential. These experts bring in-depth knowledge of legislation, technical skills and practical experience to meet the specific challenges of the tax environment.
Conclusion
A ffective tax management is a strategic investment that goes beyond simple compliance with tax laws. It enables organizations to maintain compliance with current regulations and optimize their economic performance.
Tax management should not just be seen as an obligation, but as a strategy which, if well applied, contributes significantly to the financial health and reputation of organizations.
For it to be effective, its main pillars involve the integration of legal knowledge, the use of advanced technology, strict control of ancillary obligations and proactive strategies.
In the business context, efficient tax management can mean the difference between profit and loss, directly influencing its competitiveness and sustainability in the market.
For governmentseffective fiscal management means more resources for investment in essential areas such as education, health and infrastructure, with a positive impact on society.
Managers should invest in continuous training of their teams and in the adoption of technologies that make it easier to monitor constant fiscal changes, such as SOFICOMa proprietary tax solution from Cast group that works seamlessly with ERPs and automates the entire process of submitting tax obligations.
Companies that excel in tax management generally have better results and a greater investment capacity due to the savings generated by paying taxes properly.
Now that you understand the importance of this practice for your company's financial health, contact Cast group to request a free demonstration of SOFICOM. You can adapt it to your company's needs.
