Significance of tax planning

 Every time a new financial year begins, it is essential that the company prepares an effective financial plan, to find tax and accounting strategies to reduce the amount paid with taxes, generate profit for the business, reduce costs and achieve better results.

Tax planning is a measure used that allows the company to reduce its tax burden through legal means, becoming extremely important as it allows the company to organize itself and find a way to take advantage of all the tax benefits available.

Why is it important to have tax planning in your company?

A well-done tax planning aligned with business strategies directly impacts the company’s success. See the reasons:

• reduces business costs, without interfering with the quality of the product or service provided;
• controls cash flow, as tax payments can be made in a variety of ways upon receipt of a sale;
• decreases or eliminates unnecessary tax payments;
• increases the company’s competitiveness in the market;
• promotes the use of tax incentives;
• reduces the risk of tax assessments, among others.

To stay organized and well structured, your company needs to have tax planning. When well applied, it can help you reduce taxes.

The existence of tax planning is essential for a company to remain regulated and well-ordered, especially about tax issues.

But what is tax planning?

Tax planning consists of a plan with a series of actions to be carried out to mitigate the tax burden of an organization. Good execution of this tool brings many benefits to a company, such as increasing competitiveness in the market and preventing problems with the tax authorities. In addition, it plays a significant role in reducing a business’s expenses.

Consequences of not having effective tax planning?

Several problems can arise from neglecting tax planning, such as: