A small brief regarding successful small business tax planning
To generate significant benefits and increase competitiveness in today’s changing economic environment, it is essential to optimize Taxes for small business and reinvest in the strengths of the company. During the development of proper planning, decision makers within an organization must consider the tax implications of their current business model. In this way, they will be able to align the operational and fiscal strategy to avoid subsequent risks and inconveniences.
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5 related concepts
Therefore, to reduce costs it is necessary to analyze the strengths of the organization first and not make cuts that could cause the involuntary weakening of the business. In this way, decision makers must focus on changing the actions that originally generated an inefficient cost structure and make a correct projection that allows the company to position itself for its future growth. The five actions are –
- Put resources at the service of decision making,
- Strengthen differentiating capacities,
- Use tax information as an integral part of the business and incorporate it into the organization’s systems and processes,
- Promote the transparent exchange of information and dialogue with regulators,
- Raise the fiscal function to a factor that contributes to the strategy.
These measures give rise to alternatives that allow avoiding unnecessary cash flows, as long as the companies comply with the fundamental tax requirements established in the legislation for each particular case. Thus, the application of the aforementioned concepts contributes to developing a well-planned strategy that will result in numerous operational and tax benefits.
10 benefits of successful planning
It is a fact that companies must protect their operations and focus on adequately sustaining them to face the recent position and new collection tools of the authorities. By recognizing that taxes are an essential element in the activities and projection of the organization, it will be able to obtain at least the following 10 benefits:
- Alignment and simplification of the fiscal and operational structure
- Reduction of risks in prices not controlled by the law of supply and demand (Transfer Pricing)
- Greater agility in global and regional customer demands
- Reduction of the effective tax rate
- Increased transparency and risk control
- More cash flow
- Better operation and optimized supply chains
- Increased stability in local results
- High precision in compliance with tax obligations
- Optimization of information flow at all levels of the company.
As can be seen, it is essential to analyze the information by industry and type of transaction in order to have a comprehensive vision that allows achieving the alignment of the C-suite. With this, companies will be able to obtain benefits that allow them to protect their operations and focus on essential issues, while still complying with the regulations of the tax authorities.