Nowadays, many entrepreneurs choose to outsource their financial management services to optimize time and reduce costs. But have you ever stopped to think about the main advantages of choosing an Accounting Firm For Multinationals in Brazil?
Generally, accounting for multinationals is a very complex and delicate process. This happens because the routine of companies involves regulations and tax rules from different countries. When handled negligently, these obligations can cause inconvenience and, in the most extreme cases, even the bankruptcy of the business.
Therefore, it is necessary to have an accountant with the specific knowledge to perform this function. Mainly, to deal with differences between tax regimes and keep all financial data organized according to each legislation.
It is important to emphasize that there are also other variables to be considered: the validity of international treaties, operating conditions in each country and other tax aspects that can directly influence the company’s performance. In this case, outsourcing these activities to an accounting firm for multinationals is one of the best ways to avoid any problems in the future.
Still have doubts about it?
In today’s article, we will explain how an accounting firm for multinationals in Brazil can help, what are the biggest challenges in this scenario, what services are offered and much more!
How can an accounting firm for multinationals in Brazil help your business?
As we already know, the day-to-day of a multinational requires extra care, as it covers taxation, rules and regulations from the most diverse countries. Unlike a national company, the task of managing accounting for companies of this size can be a little more difficult. In this sense, hiring accounting firm for multinationals in Brazil is a great way to have more fiscal peace of mind in the short, medium and long term.
But, after all, how can outsourcing this service help your company?
To illustrate this more clearly, we have prepared a list of 7 ways that a specialized acounting firm for multinationals in Brazil can help. Check out!
- Integration of head office and branch systems;
- Improvement in the company’s reputation;
- Adaptation to different legal requirements;
- More assertive decisions;
- Preparation of contingency plans;
- Transparency in business growth indicators;
- 360º view of market movements.
Management accounting for multinationals
Management accounting is a fundamental tool for any company, especially multinationals. It is an area that integrates a compilation of internal and external information so that managers can improve decision-making in a business. All designed so that you can focus calmly and safely on your strategy, knowing how to reduce costs, which fronts to invest in and, above all, how to manage the company.
In other words, management accounting is a method of techniques that measures and examines both financial and accounting information. From this, it is possible to have a broader planning and control in business management and, consequently, allocate resources in the best way. It is something that goes beyond, and complements, traditional accounting.
In this sense, the accountant in charge uses spreadsheets, reports and other management tools, facilitating the visualization of current perspectives of what is already being done by the company and opportunities that can be taken advantage of. Therefore, the entrepreneur is aware, for example, of costs and budgets, the goals that must be achieved in the short and long term and other elements that can guarantee the health of the business.
Thus, when hiring an accounting firm for multinationals, this model offers quick action plans in case of emergencies. Proof of this is the greater stability it brings in unfavorable economic and even political situations.
After management accounting is applied, the entrepreneur will be able to find, based on data, the best choices to achieve more satisfactory results. Meanwhile, in the midst of this process, there will be active action on several optimization fronts, such as:
- Analysis of costs and budgets;
- Reformulation of logistics;
- Service of excellence, focused on the user experience;
- More effective management;
- Appropriate allocation of resources;
- Panoramic financial control;
- Management of production lines costs;
- Profitability percentage growth;
- Constant monitoring of ROI;
- Closer and assertive communications between departments, etc.
Within this context, management accounting and the accountant himself have become very important factors in decision-making processes. If previously accounting firm for multinationals were restricted to financial and accounting demands, now they have a role even closer to the management of the company.
Discover other services offered by accounting firm for multinationals in Brazil
As we have seen, management accounting is one of the main services offered by an accounting firm for multinationals. An area that stands out a lot in the market. However, on the other hand, there are also other points of attention within the company — essential services for everything to go well.
Want to understand more in depth what they are? Check out the list we prepared!
Tax planning advice
Made by a trusted accountant, who understands all the details of tax legislation, tax planning advice can help with this. It also makes it possible to reduce tax risks and identify opportunities.
Labor Advisory: accounting firm for multinationals in Brazil
This is one of the most common reasons for a company, whether multinational or not, to look for an accounting firm. Its role is to ensure that all payments are made correctly and that regulations are respected, avoiding possible legal problems in the future. Hiring this service assists in the following tasks:
- Calculation and issuance of employee paychecks;
- Preparation of reports regarding data from payroll for the labor tax authorities;
- Issuance of INSS, FGTS and Withholding Income Tax (IRRF) guides;
- Management of admission and dismissal documents, etc.
- Payroll Processing (including 13th salary and vacation pay).
Admission and dismissal of employees
From hiring to terminating employees, the accountant is the professional who bridges the gap between company and person in each bureaucratic task. In this way, we can include payroll processing in this. Thus, this service is essential at times such as signing the portfolio and terminating the employment relationship.
It represents one of the most valuable accounting resources for companies, especially when there is a greater concern for compliance. The audit combs the entire financial scenario, and can point out irregularities, probable management fraud and other management failures.
This inspection can happen sporadically, but it can also be something constant, routine. With this analysis, financial data are completely analyzed to ensure greater compliance with current laws. In this sense, accounting documents such as cash flow and balance sheet are examined through this service.
Issuance of documents for participation in bids
The accountant plays a purely strategic role when faced with clients who are participating in bids. In this service, it is the facilitating channel between the company and the volume of documents that need to be sent. That is, having an accounting office for this purpose saves time. After all, documents are usually sent in person or even by mail.
One of the most dense steps of this work is the issuance of Certificates of Regularity, but when done correctly, it helps the business to win possible bids. Therefore, this adds more credibility to the company’s image, but also to the accountant’s curriculum.
Delivery of accessory obligations
It is a very bureaucratic activity, because the complexity of the Brazilian tax system brings several legal requirements. For this reason, it is one of the most sought after services by companies.
But which items make up the delivery of ancillary obligations? See below!
Withholding Tax Return: information on payments and receipts with withheld income tax;
Annual List of Social Information (RAIS): payroll information.
Taking care of bookkeeping is one of the biggest responsibilities in accounting. It is an activity that works with the company’s tax books, observing each financial movement carried out, controlling what is essential and inserting information in statements and other documents. Therefore, it covers some obligations, such as:
- Balance Sheet;
- Bank reconciliation;
- Income Statement for the Year — DRE;
- Tax calculation record;
- Among others.
In bookkeeping, the company segment needs to be considered, mainly to meet the specific legal procedures for each type of business. This is the role of the accountant: he will analyze which requirements apply to a given situation. In addition, when the issuance of tax guides, such as ICMS and ISS, is carried out, the entrepreneur is up to date with the tax authorities.
Planning is essential for the success of any business model. This directly affects the way of acting, building projections and setting goals to be met. Proof of this is that, once a year, the entrepreneur has time set aside to restructure his activities.
With the help of an accountant, the company is able to develop goals that are consistent with the reality faced. At the same time, this professional will play a key role in stipulating action plans and clearly showing the probability of the strategic planning being successful within 12 months.
What are the main accounting challenges for multinationals?
Brazilian Tax legislation
The Brazilian tax system represents, for two reasons, the first challenge for an accounting firm for multinationals: its complexity and high taxation.
To have a more concrete idea of this, a survey carried out by the Organization for Economic Cooperation and Development (OECD) showed that we have the highest tax burden in Latin America, reaching 50% above the average practiced in this region. In addition, the World Bank brought a report that found that, in Brazil, entrepreneurs spend an average of 1958 hours a year to keep up with the tax authorities. This is the equivalent of almost 3 months. In other words, it is time that could be used for other purposes.
Given this reality, with countless tax acronyms and tax obligations, hiring an accounting firm for multinationals is a smart choice. It’s a way to guarantee more time to focus on growth strategies.
Reports between headquarters and branches
In addition to complex tax legislation, there is a second challenge for multinationals: the exchange of information between headquarters and subsidiaries. It is more common than you think to find companies in which the units do not have standardized action plans for specific situations. So managers end up making totally different decisions for the same goal.
In this sense, a specialized professional can create operational process flows and implement them in the company’s daily routine. With this, it is possible to map each task, its execution and have more organization. A tactic adaptable to the specifics of each country in which the business is present.
Therefore, in this case, the accountant calibrates the dialogue between headquarters and branches, providing a more efficient internal communication system.
Post Covid-19 World
In 2020, with the outbreak of the new coronavirus pandemic, multinationals were forced to take on new behaviors such as placing employees at home, analyzing and cutting costs and having an even closer relationship with their customers, according to the new reality. In accounting, it was no different.
For a more agile adaptation to the new normal, the number of companies that sought to outsource accounting services grew. In contrast, other businesses maintained their accounting operations internally. Therefore, in the post-Covid-19 world, those who have not yet adapted will need to take the necessary measures not to be left behind in relation to competitors.
Modernization with management software
In the context of digital transformation, integrated specialized management systems — ERPs — have gained more and more space in accounting. So much so that the main Brazilian tax authorities already make use of reporting software. Therefore, automation has become an ally in everyday life, reducing manual work hours and improving the management of legal compliance.
Thus, when we talk about technology, the main challenge for multinationals is to start digitizing their processes, if this has not already been done. Or, in other cases, improve the use of this type of tool in the company’s routine.
Is your company ready to move offices?
At first, it is normal for employees and leaders of a company to show some reluctance in the face of changes. However, to meet the expectations and comply with the tax obligations of a multinational, it is essential to migrate to a specialized office.
But how to identify the signs that your company is ready to change?
You can pay attention to a few points:
✓Service that leaves something to be desired;
✓ Communication fails;
✓ Lack of updating of the most recent knowledge about the legislative system;
✓ Missed deadlines;
✓ Almost non-existent proactivity;
✓ Use of outdated tools.
So, if you are not satisfied with the current accounting, it means it is time to change partners. Although it looks like a seven-headed bug, changing accountants is very simple! First, request the cancellation of services by email. Remember that it is important to enter the company data and the end date of the contract. Accounting firm for multinationals
Then ask for all the registration, accounting, tax and personal information back. Another request that must be made is a statement of all debts with municipal, state and federal agencies.
At the same time, signing a technical responsibility transfer term helps to have more peace of mind in the procedures involved in this migration. Sometimes, almost always, the offices themselves provide this document.
It is worth noting that the current accountant will have a period of up to 30 days to adjust the demands related to the end of the contract.
See how easy it is to make sure your company is prepared? And how fast is change?
Your business can only gain by migrating to an accounting firm for multinationals.
Having a multinational and dealing internally with tax information from different countries can be very exhausting. Taking on this task can harm time management, reduce productivity and increase costs, in addition to being an overload factor for your team. For that the help of an accounting firm for multinationals in Brazil it’s essential.
Therefore, to better manage the accounting part, you can hire an accounting firm for multinationals, such as CLM Controller. Using our services, you will be able to find several advantages in your new routine. In addition, you will be able to focus your efforts on other fronts of your strategy to continue conquering the market.
Request a free quote right now and see how having an accounting firm for multinationals can transform your business.