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Accounting in Brazil: The First Steps for Your Business

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accounting in Brazil

Not knowing who is really hiring is a very big risk. This happens a lot with the entrepreneur, looking to hire an accounting consultancy. It is normal for you to be unsure how to choose an accounting firm in Brazil.

Currently, CLM Controller is made up of highly qualified professionals duly registered with the Regional Accounting Council of São Paulo.

For 40 years providing excellent advisory and consulting services in the accounting, tax, labor, paralegal and financial areas.

Accounting should be considered a management tool and not just a boring and meaningless formality.

Hiring good accounting advice is essential for the sustainability of your company, and when dealing with Accounting in Brazil, it is necessary to consider the various issues, tax, financial, legal and even cultural.

About accounting in Brazil

The accountant is a very important professional for any company, as their activities generate great impacts on management and on the business decision-making process. He is responsible for carrying out auditing and forensic work, which are essential for the growth and smooth running of the economy.

In 2017, the Ministry of Labor released data on this profession, raising numbers of professionals with a formal contract in the country and on trends in the area.

Within this survey, the Federal Accounting Council (CFC) indicated 349,171 active accountants. In addition, Brazil has 61,864 accounting organizations, divided between entrepreneurs, corporations, micro-entrepreneurs and Individual Limited Liability Companies. In 2017, it was found that Brazil had 127,639 professionals in the area with a formal contract.

Furthermore, according to SEBRAE data, 72% of companies use accounting office services, while 28% of them work with self-employed accountants.

About the Company’s Documentation – How to hire good accounting advice

accounting in brazil

Most business documentation must be kept at the company. Every beginning of the month, the tax, accounting, financial and labor documents are sent to the accounting office to carry out the due records and then return to be filed at the company.

At the Accounting Office there is only the contract for the provision of services, copy of incorporation documents and some tax and accounting books until the end of the year.

After monthly accounting, taxes and charges are sent to the company to make the payment. The responsibility for payment is always the entrepreneur. Values for tax payments should not be passed to accounting.

If you feel impaired in your relationship with your accountant, you can call the Regional Accounting Council.

How much does an accountant cost in Brazil?

The amount charged by an accountant depends on numerous factors, such as the services provided, the complexity involved and the type of contractor, which can be an individual or legal entity.

 

In addition, the cost can vary depending on the region and the experience of the chosen professional, and the cost varies greatly depending on the company.

With that in mind, let’s list the main services offered by an accountant:

With that in mind, let’s list the main services offered by an accountant:

  • Personal Income Tax;
  • Corporate Income Tax;
  • Publication of Minutes and filing at the Commercial Registry;
  • Condominium statutes;
  • Minutes of General Meetings of companies;
  • Tax bookkeeping for non-profit entities;
  • Entrepreneur registration;
  • Payroll processing.
accounting in brazil

How much does an accountant’s monthly fee cost in Brazil? 

The monthly fee and fees of an accountant vary greatly, as there are many services that can be performed. Factors such as the company’s revenue, number of employees and activities requested are decisive for the value.

In general, the price varies a lot depending on the company, region and all the factors already mentioned.

How much does an accountant’s monthly fee cost in Brazil?

In the state of São Paulo, the average cost to start a business is R$1500.

This includes fiscal and social costs, that is, the necessary documentation (registration, opening of CNPJ, state and municipal registration).

The amount for working capital and payment of first salaries, costs and everything else necessary to leverage the company, are not included.

accounting in brazil

How much does an accountant’s monthly fee cost in Brazil?

The average time for opening a company both in the state and in the city of São Paulo is 15 working days.

Within this period, the complete procedure for starting a business was considered, from the organization of the requested documentation until everything is approved and the entrepreneur has in hand the CNPJ, license and State and Municipal Registration.

What are the taxes paid by a company in São Paulo?

Companies located in the state of São Paulo must pay all federal and state taxes listed below.

Federal: Corporate Income Tax (IRPJ), Social Integration Program and the Public Servant Asset Formation Program (PIS/PASEP), Contribution to Social Security Financing (COFINS), Tax on Industrialized Products (IPI), Import Tax (II).

State: Tax on Operations related to the Circulation of Goods and Provision of Interstate and Intermunicipal Transport and Communication Services (ICMS), National Institute of Social Security (INSS).

Companies located in the city of São Paulo must pay the following taxes, in addition to those mentioned above.

Municipal: Health Services Solid Waste Tax (TRSS), Urban Property and Land Property Tax (IPTU), Electronic Declaration of Financial Institutions Services (DES-IF), Declaration for Municipal Participation Index (DIPAM) , Real Estate Transfer Tax (ITBI), Tax on Services of Any Nature (ISS), Establishment Inspection Fee (TFE).

It is important to emphasize that the tax regime directly affects which taxes must be paid and the rates applied. Also, not all taxes are mandatory for all businesses. For example, Import Tax (II) is only mandatory for businesses involved with some type of import.

We can help your company with accounting in Brazil

Finding an accountant for your company isn’t complex, but it can be laborious. It involves studying the various issues that will involve your company’s needs and how accounting can serve. We can help! Schedule a conversation with our team of consultants and let’s discover the best options for your company.

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