Accounting advice for telephone companies: understand its importance

Accounting advice for telephone companies: understand its importance

Telephony companies operate in a complex landscape, subject to strict regulations and unique financial challenges. In this article, we'll explore the crucial importance of specific accounting advice for telephony businesses, highlighting how this specialized support can boost operational and financial success.

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Specific legislation for telephone companies

In Brazil, 50% of the amount paid for the various telecommunications services refers to taxes, fees and other contributions.

However, when you transfer responsibility for telephony laws and taxes to an accounting advisor, costs can be reduced, even if taxes and other fees remain the same.

In addition, a professional who specializes in accounting may be better able to carry out the sector's activities, as they are always in touch with the main laws and regulations governed by ANATEL, preventing the company from being harmed.

In this case, the services of an accounting firm for telephone companies can be the best option for reducing unnecessary expenses, improving the management of the company and its processes, making it develop and obtain better profits.

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Regulatory compliance in telephony

The telephony sector is under constant regulatory scrutiny. With specific rules from ANATEL and other sector legislation, accounting advice is essential to ensure that the company is in compliance, avoiding penalties and guaranteeing a legal operation.

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Taxation for telephone companies

As mentioned earlier, Brazil is one of the countries with one of the highest tax burdens in various sectors, and in the case of Telecommunications, this picture is no different.

After some studies, it was found that our country is in third place out of 50 other countries analyzed, second only to Turkey and Uganda.

These charges can be levied on three main categories: For stations and terminals; On gross revenue; Other taxes.

In addition, taxes levied by telecom companies are now on the rise:

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FISTEL

The Telecommunications Supervision Fund was created to finance the supervision of telecommunications systems offered by internet, telephone, radio and television providers, and it can be charged both for the installation of stations and for those that already exist;

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ICMS

The highest tax rate related to telecommunications services is levied on operations, services or transport, representing a high value for both the company and the consumer.

(Around 25% to 35% of the amount charged for the service offered, varying from one state in Brazil to another);

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FUST

This tax is intended to raise funds for digital inclusion in the country;

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FUNTTEL

The Fund for the Technological Development of Telecommunications aims to invest in research in this area.

Thus, it can be seen that various taxes have a real impact when it comes to telecommunications services in Brazil.

In this way, having the support of a professional who is in daily contact with this type of activity can bring very significant results for telephone companies.

A final point is the importance of knowing that taxes do not only include taxes, but also other fees such as:

Social contributions, improvement contributions, loans taken out and many other issues related to finance, as you can see from the list above.

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Reduction of financial risks:

Accounting advice helps to identify and mitigate financial risks, promoting financial security and stability. This includes investment analysis, cash flow management and resilience in the face of market variations.

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Examples of companies that have benefited

1. TeleComExpertTeleComExpert, by investing in specialized accounting advice, has improved its tax efficiency, reducing costs and maximizing its profit margin.
2. ConexãoPlusConexãoPlus has achieved full compliance with ANATEL standards, avoiding penalties and guaranteeing legal operation.
3. TeleInovaWith strategic accounting support, TeleInova implemented cost control practices, improving its profitability in the telephony market.

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How does an accounting firm for telephone companies help with difficulties?

Firstly, both managers and accounting professionals may encounter difficulties during their work.

Planning is therefore the key, ensuring that there are no problems with signal transmission to customers, mismanagement of stations, downtime, etc.

What's more, it's no less important than the previous one:

Setting sales prices - the help of an accounting firm for telephone companies can help with improvements.

Profits will be made by offering quality services and good management will depend on a qualified professional.

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.