Find out what tax management is and how to do it in 3 steps

Tax management or tax control is the process that goes beyond simply paying Taxes as an independent contractor on time. It is the process that involves management, planning, analysis, control and monitoring of all tax obligations of the enterprise.

How to control taxes?

An effective tax management is performed by applying the specific techniques discussed below.

Tax compliance

It consists of leaving the company in compliance with the country’s tax law, obeying exactly what the legislation says. For this, the accounting must keep books and tax documents duly completed.

Tax planning

Tax accounting planning is the set of operations carried out with the objective of making the company pay the minimum possible tax without violating the legislation.

Preventive audits

In order to prevent a certain company from being assessed in a situation of tax verification, in a preventive manner, the Accounting professional checks the entire fiscal situation of the business in order to resolve any irregularities.

What is the role of the Tax Management specialist?

The tax management specialist is the professional who works to ensure the correct application of the rules and the implementation of tax strategies. For this, this professional:

  • Performs tax planning;
  • Follows changes in legislation;
  • Performs the calculation of direct and indirect taxes;
  • Reviews the delivery of ancillary obligations.

This professional can work both in large companies, as well as in NGOs and accounting offices, as an accounting consultant. Now, if you are interested in finding out how to be successful in accounting, you need to download online eBook on the topic: How to be successful in accounting? In it, you will learn important tips on accounting management to improve your work routine, performance, customer service and profitability.

What is the reality of the tax manager in organizations?

In a country marked by excessive taxes, being able to keep the price of a certain product compatible with the expectations of the consumer market and thus guaranteeing the security of the business, requires a hard work of tax management. To give you an idea, paying taxes means a burden of up to 40% of a company’s revenue. Taxes such as Direct tax can cost up to 18% of profits, IPI, 10%, PIS and COFINS, up to 9.25% and so on. In order to remain sharp in his activity and follow the various rules that govern the tax system, an accountant must read hundreds of laws, decrees, normative instructions, acts etc. every year.

In addition, it is routine to fulfill dozens of accessory obligations with the Tax Authorities, such as digital files, declarations, forms, books and guides. The people responsible for the corporate tax sector deal with the difficulty of applying planning routines and going a little further than simply fulfilling their obligations.

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