In this way, it is possible to obtain a more complete analysis and planning. At this point, you must define the steps and responsibilities of each person who is part of the interdisciplinary group.
At the same time, outline a schedule for each task to be accomplished. With this, you avoid actions that are done at the last minute, with errors and failures, and increase the control of activities.
Gathering information for calculations
It has already become clear that tax management requires updated and consistent data. They may vary depending on the business, but generally the necessary data is as follows:
- Billing: geographic distribution of revenue, total revenue and location where the services were provided
- Purchases: must be separated as state, interstate and imported
- Services taken by the company
- Operating expenses
- Profit margin by economic activity
- Payroll expenses
- Investments and sources of funds for them
- Corporate structure.
Analysis and simulation of scenarios
Based on the data obtained in the previous step, you can do an analysis to understand the current situation of the organization. It is also worth making simulations of possible tax situations, paying attention to points that may interfere. But how do i figure out sales tax? The tax calculator is the option that you need to go for.
For example: does the tax regime impact the customer’s buying habit? Or if the inputs are purchased from another supplier, will freight costs increase?
Think of all possible situations and take into account the following points in particular:
Revenue: it is necessary to analyze whether the changes impacted the segment of operation or the buying habits of the customer.
Profitability: some operating items vary, which may cause changes in taxes. In that case, the company’s profitability may be high or reduced.
Purchases: it is verified whether the changes impacted tax credits or situations of differential tax rates and tax substitution.
Labor: identifies possible impacts on human resources.
Operating expenses: evaluates what volume will need to be spent to reach the expected result.
Assumptions: considers whether the assumptions have given rise to any risk of assessment or dubious interpretation.
What is the importance of tax planning?
You have already understood exactly how tax management aimed at your planning works, what are its objectives and advantages. But if you still have doubts about the importance of this practice, we will list a series of items that will convince you.
The idea is that you realize that tax avoidance is an activity that must be adopted by all organizations, because it helps them to grow and increase competitiveness.
For you, this knowledge is also valid, because it increases your professional qualities and allows you to stand out in your field.
Check out which elements ensure the importance of tax avoidance:
Participation in the organization’s expenses
Yes, the total amount of taxes paid by citizens and especially by companies is very high and this has a negative impact on the competitiveness and profitability of the business.