Accounting firm for advertising companies: Here's how important it is
Whether or not to count on an accounting firm for an advertising company should be one of your doubts if you are an entrepreneur in this field.
The accounting sector therefore requires extra attention in any company. In the case of accounting for advertising companies, this is no different. Good periodic monitoring by a competent professional can save you a lot of trouble in the future.
Businesses involved in advertising require special care in terms of accounting, specific legislation and taxation, so we're going to talk about each of these points, as well as warning you about some of the difficulties you may face.
This way, you'll be aware of everything that an accounting firm for advertising companies can offer. To better understand how this professional advice would work for your company, keep reading this post.
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Specific legislation for advertising companies
Advertising agencies use content distribution media to publicize their advertising, commercial and institutional campaigns. For all this, there is very specific legislation in force.
Despite being one of the most labor-intensive and stressful parts of an advertising agency, you have to bear in mind that taking care of the legal and accounting side responsibly is indispensable.
The reasons that generate the most lawsuits for advertising agencies are precisely the use of information that misleads third parties and the misuse of images. Breaches of privacy, copyright and the dissemination of false information are also sources of major problems.
Therefore, the best alternative is to be careful and avoid problems, as lawsuits of this size can last for years, as well as ending in extremely expensive settlements.
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Taxation for advertising companies
In Brazil, everything from micro-enterprises to large companies are subject to some form of taxation, which in some cases can be as high as 36% of revenue.
In the case of advertising companies, there are different tax regimes. At the moment, the three systems in force are:
- Simples Nacional, which, as the name implies, is the simplest. Payment is made in a single lump sum and includes national, state and municipal taxes, as well as the INSS contribution. It is recommended for medium-sized and large companies.
- Presumed Profit, in which a profit rate of 32% is applied to pay Income Tax and Social Contribution on Net Profit. PIS and CONFINS are fixed. This is the right option for highly profitable companies.
- Real Profit, in which a tax base is paid on the IRPJ and CSLL, in which case both PIS and CONFINS are higher. This is the system recommended for companies with a low profit margin.
The three systems have been presented here in a simple and summarized way. In practice, many factors must be analyzed before considering the recommendations given.
One tip for those who want to pay less tax is to reduce the pro-labore, which is the salary of the company's partners. This is related to a series of taxes and social security contributions and there are adjustments and agreements that can be made in this regard. But, of course, this decision is best advised by a specialist.
Revisions and adaptations needed in the corporate planning of an up-and-coming company
How does an accounting firm for an advertising company help with difficulties?
First of all, when it comes to legislation and taxation, one of the major difficulties is the fact that many changes are made and those who aren't paying attention end up having problems.
Another point that ends up causing problems is the level of detail required. Missing a point is common when faced with a sea of information.
The digital age has brought countless facilities to our daily lives, but in relation to the legal area of advertising companies it hasn't been so good. As a result, the internet allows for the rapid spread of information, and if an agency commits a misuse of image or any other infraction of the category, the punishment is certain.
Surveys also show the difficult reality faced by the sector: the myriad of tax burdens applied. Given Brazil's economic situation and the increase in taxes, it has become increasingly difficult to keep a company in line.
There's a solution for everything, isn't there?
In this case, good advice can solve your problems, as well as avoiding unnecessary expenses and surprises with summonses or sanctions. This is an investment that brings very positive results.
If you need to rely on experienced accounting advice, capable of providing the best strategies for your company to improve its financial performance, get to know CLM Controller's solutions now.
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