Financial and tax planning may be what your business needs to overcome the impacts of high inflation

There are a number of factors in our country that can negatively influence a company's finances, regardless of the industry in which it operates.

With the pandemic, this aspect became even more relevant and evident, after all, many businesses faced difficulties and even had to close their doors.

One of the main examples is high inflation, which, unfortunately, can unbalance a business if it does not have a good financial and tax management, and can even leave it in the red and bankrupt.

Therefore, we have prepared a more than special article to clarify the points related to high inflation and how it can impact your company.

But not only that, as we aim to help you, we will present you with the perfect solution for you to circumvent the damage caused by high inflation.

So, have a great read!

How does high inflation affect companies?

Let's get to what really interests us here in this article, which is to understand how high inflation hurts businesses in all sectors.

Keeping in mind that high inflation represents a price increase, it is possible to conclude that your business will also have to pay more for the same amount of product or service.

This variation, however small, can represent an imbalance in your cash flow, after all, the more you spend to perform your activities, the lower your profits will be.

Of course, this can be offset by charging more to your customers, but you have to keep in mind that they will not always be willing to pay more for the same thing.

Besides this, it is also worth mentioning the high inflation in the tax issue, after all, with the increase in the tax burden, the businessman is forced to increase its prices to supply the amount collected in taxes.

This can also cause your customers to look elsewhere, putting your business at risk. Not only that, your suppliers also tend to raise their prices, making your costs higher.

So, like it or not, when it comes to high inflation we are all in the same boat, so it is very important that you look for alternatives to pay less.

International trade also suffers from high inflation

At this point, you might be thinking that foreign trade is not affected by high inflation.

But we are sorry to say, dear entrepreneur, that the reality is not very different in this case...

When we import products from abroad, we have to deal with the devaluation of our currency, also caused by high inflation.

Thus, what would be much cheaper abroad, when brought here, to our country, can represent a very high value and can harm our finances.

In summary, we can say that regardless of your field, your business will be hurt by high inflation, and therefore you can:

• Having less cash on hand;
• To fail to fulfill one's obligations for lack of money;
• Decrease the quality of the product or service;
• Have cuts in staff and resources;
• Suffering from low profitability;
• Acquire debt;
• Have increased costs;
• Going bankrupt.

How to guarantee my company's financial health even with high inflation?

Of course, if you are here following along with us in this article, you do not want to suffer from any of the consequences caused by high inflation mentioned above.

However, you can rest assured that we will not leave you empty-handed, and in this topic we will present the much desired solution to circumvent the damage of this phenomenon.

Check it out:

Financial and tax planning are the solution

During your trajectory as an entrepreneur, you must have heard about financial planning, right?

This process is so well known because it is fundamental to ensure good results and the financial stability of a business.

Ideally, it should be executed at the very beginning of your activities, in order to avoid problems due to high inflation, but it can also help you at this crucial time.

Financial planning is composed of a set of accounting and administrative activities. Here are some examples:

• Registering all the financial movements of your company;
• Observation of the cost pattern of your business;
• Control unnecessary expenses;
• Maintain good communication with your suppliers;
• Be aware of the characteristics of your market;
• Set goals for your business;
• Predict possible scenarios and prepare.

But it is not only this solution that we can propose for your business, after all, tax planning is also fundamental to combat the evils of high inflation.

As we mentioned before, with high inflation your business may pay more in taxes, have higher costs and your sales may decrease...

Therefore, tax planning emerges as an efficient alternative to ensure the most appropriate and beneficial tax framework for your company, always in compliance with the legislation.

In other words, we can say that tax planning can help you save money, even in a complicated scenario with sky-high inflation.

Do you have the time to fight high inflation?

As you may have realized, doing financial and tax planning can help you to successfully circumvent the harm caused by high inflation.

However, several steps are required to achieve this status, and this demands a lot of time from the entrepreneur.

Surely, your routine is full of tasks, and it is almost impossible to find the time to focus exclusively on this function.

However, don't let this stop you from putting good financial and tax planning in place and ensuring the security your business needs to survive.

Accounting can help you get around high inflation!

By counting on the support of an accounting firm, you can focus exclusively on your core tasks, leaving your finances in the hands of those who really understand the subject.

Accountants have the necessary expertise to perform good financial and tax planning and thus make the impacts caused by high inflation practically imperceptible.

Therefore, don't hesitate to have a team by your side that can put in place the actions you need to get around this difficult situation.

Count on the support of the International Consulting Group!

To everyone's happiness and relief, we at the International Group have exactly what you need to survive high inflation!

Through our accounting services, you can be sure that your costs will be as low as possible and that your business will always be profitable!

So, don't waste any more time and contact us right now to learn more about how we can help you!

To do this, just click on the "Learn More" page and contact us through one of the available options.

We are waiting for you!