Tax management is one of those issues that cause concern and chills just by hearing the name. Many managers find this content complicated to understand. Calculating Taxes as an independent contractor requires some skill, really. However, if you want business growth, increased profits and decreased spending, it is advisable to have at least a basic understanding of the topic.
What is tax management?
Tax management is the action of managing all the tax aspects of a company. This involves taking care of taxes, fees and contributions related to principal and ancillary obligations. The goal is to ensure that the business has legal certainty, pays as little taxes as possible and takes advantage of tax benefits. For this, it is necessary to provide the correct tax information, choose the tax regime most appropriate to the reality of the company, do tax compliance, carry out planning, audits, etc.
How to further optimize tax management?
It is not because things look great that you should be carefree. Improvement is always possible. Optimization can be guaranteed through important techniques.
“Compliance” comes from the English verb “to comply” and means to comply with a rule or rule. This is important so that people can perform a job competently. In the financial sphere, this term has been used in order to organize fiscal disciplines to comply with the regulations, guidelines and policies established by law. Tax compliance establishes a set of tools to assist in this execution. Thus, there must be monitoring with respect to updates in standards, constant monitoring and management, in order to avoid deviations, human errors and inconsistencies.
Here, accounting and legal professionals analyze all the company’s tax information. The purpose is to ensure that everything is as expected, so that when the tax agencies carry out any verification they do not find discrepancies. And if something out of the ordinary is found, it can be repaired right away.
Tax planning aims to make the company pay as little taxes as possible, but without going out of law. It can be done in an operational and strategic way. In the first, the most basic, procedures are planned to comply with the correct bookkeeping of operations and the payment of taxes on the appropriate dates. In the second, a study is carried out to fit the company in the most convenient tax regime, in addition to knowing other tax peculiarities.
Thus, it is possible to reduce expenses (through tax avoidance), avoid the incidence of tax (preventing the taxable event, for example, taking advantage of an exemption rule), reducing total amounts to be collected (decreasing or cutting some fees) and delay payment (without incurring fines).