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Accounting for startups: tips to check before entering the Brazilian market

Posted 2022-06-03 Accounting for startup: tips to check before entering the Brazilian market

The Brazilian market  presents itself as a sea of opportunities  for startups. Always supported by a tax accountant in Brazil, foreign companies assess how they can expand operations and increase profits in the South American country.

Brazil, in fact, is quite receptive to this business model. So much so that, in recent years, startups focused on technology  and finance have grown exponentially.

In 2021, there was an increase in investments of more than 200% in this business model.  The investment rounds increased from USD 5.5 million in 2020 to USD 13.7 million in 2021. 

Numbers like this attract the attention of more investors  in the fintechs, retailtechs and construtechs segments. And if you also plan to enter the Brazilian market, learn more about accounting for startups  in the country! 

Accounting for startup: why have a tax accountant in Brazil

It is worth emphasizing the importance of having the guidance of a tax accountant in Brazil. An accounting firm is the key to success for your business.

After all, each country has its own bureaucracies and laws. In addition, knowing all legal procedures, taxes and other issues allows your company to be more competitive and protect its operations. 

See what are the main steps or relevant aspects in opening a startup in Brazilian territory

Accounting tips for starting a startup in Brazil

Startup opening

The Brazilian government has worked hard to reduce bureaucracy in opening new companies. Still, the entire process of starting a business needs the guidance of a professional accountant

The accounting firm is responsible for:

  • Opening the CNPJ (National Registry of Legal Entities);
  • Opening the accreditation for the issuance of an invoice for the sale of services or products;
  • Provide the I.E (State Registration) and the I.M (Municipal Registration).

 

Make your financial plan 

Starting a new business requires a lot of planning from the entrepreneur. Financial planning is a key part of business success  and the strength of an organization over time.

Therefore, define the initial capital in your planning, fixed income, investments, cost projections and short, medium and long term financial goals. 

These compiled data offer the entrepreneur a systemic view of the entire business management. This makes it easier to make decisions and avoid unpleasant financial surprises along the way. 

Tax/Accounting Planning 

 

In addition to the documental part for opening a company, pay attention to the tax records  of cash inflows and outflows. 

Record such information in the cash book, in order to help the entrepreneur assess the financial situation of his enterprise. 

Tax Planning 

 

Brazilian tax legislation is complex, unlike what happens in other countries. This further highlights the importance of obtaining the maximum knowledge of the tax laws and taxes in force in the country. 

In addition, given the high complexity of tax planning, count on the support of a team of specialized accountants

Tax/labor compliance

Every company operating in Brazil has tax and labor obligations with its employees. Therefore, business owners need to be aware of these key obligations, which include: 

  • Issuance of service or sales invoices;
  • DIRF (Declaration of Withholding Income Tax);
  • Accounting Bookkeeping;
  • Payroll;
  • Tax Sped;
  • DEFIS (Socioeconomic and Tax Information Declaration);
  • e-Social.

Accounting for startups in Brazil is Europartner’s specialty

To grow solidly and continuously, your business needs to operate with peace of mind. Europartner is your specialist accountant  who ensures that your business operates in accordance with all legal aspects.

Contact us and learn about our main services

Author's post: Europartner Accounting