Eight tips to improve your company's tax management before Black Friday.

With Black Friday knocking on the door, retail and e-commerce need to redouble their attention to keep their tax management in order. During this period, financial activity and transaction volume intensify, consequently, the need to pay more attention to tax obligations is greater. 

"Errors in tax calculation, delayed document submissions, and a sluggish tax workflow lead to missed deadlines and unmet obligations, potentially resulting in penalties and compromised cash flow. This is undesirable at a time when companies are focused on maximizing consumption peak opportunities with the greatest possible speed and accuracy in their submissions," says Adriana Karpovicz, Head of Large Account Sales at Qive, a... platform Responsible for managing the tax documents of over 150,000 Brazilian companies. 

To help entrepreneurs navigate this landscape, the expert has compiled eight essential tips that can improve your company's tax management and ensure that, beyond sales success, businesses also maintain their financial health.

1. Get ahead in fiscal organization

The period before Black Friday is a good time to review the company's fiscal organization. It's essential to consider the specifics of Black Friday, such as discounts and promotions, which can impact the tax base. For smaller businesses, this is even more crucial, as the margin for error and financial unforeseen events can be more impactful on the results. It's important to check if the management systems are prepared for the increase in sales volume and if the tax information is correct. Brief training for the team to handle the increased demand and issue invoices correctly can also be beneficial. Keeping fiscal documentation, such as incoming and outgoing invoices, organized also facilitates the issuance of invoices and the calculation of taxes.

2. Monitor current legislation

Tax rules can change throughout the year, and staying updated is essential. Track any changes that could impact the taxation of online or in-store sales during Black Friday. Small businesses and e-commerce stores should pay close attention to changes in taxes like ICMS and ISS, which can vary by region. 

3. Attention to installment conditions and taxes

Offering payment plans is common during Black Friday, but it's important to remember that taxes are collected when the invoice is issued, regardless of the payment schedule. Therefore, cash flow needs to be considered in the planning process so as not to jeopardize the business's financial health with long-term installments.

4. Reinforce documentation and record-keeping

Organize all tax documents generated during this period: invoices, receipts, and tax payment proof. This facilitates financial reporting and future audits. For SMEs, which often operate with smaller teams, this organization can prevent legal complications and rework.

5. Conduct internal audits

Before the start of Black Friday, consider conducting internal audits to review tax processes and ensure there are no outstanding issues or failures that could result in penalties. This precaution is even more relevant for physical retail businesses, which tend to handle a high volume of tax documents during the period. Create processes for efficient inventory control to avoid tax problems. Ensuring products are properly registered is essential to prevent discrepancies in tax calculations. Maintain updated inventory and track the inflow and outflow of goods to align revenue with actual stock.

6. Plan your cash flow precisely.

High sales during Black Friday are an opportunity to increase cash flow, but taxes can consume some of that result. Maintain a clear projection of the taxes that will need to be paid in the following months to avoid surprises and ensure a positive balance sheet after the promotional period.

7. Take advantage of tax incentives and tax regimes.

Research and leverage potential tax incentives that could benefit your company during Black Friday. Small businesses opting for the Simples Nacional regime, for example, may benefit from a simplified tax system, while large retailers might explore state or federal incentives to reduce their tax burden.

8. Use of tax management technologies 

Adopting technology is critical for ensuring efficient fiscal management. Digital tools, such as management software, automate processes like issuing invoices, calculating taxes, and controlling stock, virtually eliminating the possibility of errors, missed payment deadlines, and incorrect invoice issuance. Furthermore, integrated e-commerce and payment platforms help monitor sales in real time, ensuring all operations comply with fiscal requirements. Using technology streamlines management and reduces manual errors, allowing entrepreneurs to focus on sales strategies during Black Friday.