Import accounting management: 3 mistakes to avoid

Accounting management is an essential part of a company's daily work and has a direct impact on its performance. Inefficient management compromises results and slows down business growth.

When we talk about import companies, the work of accounting is even more relevant, since there are more bureaucratic issues to be observed by the professionals who carry out this work.

The administrative routine of import accounting requires experience and specialization to avoid mistakes that are very common and easy to make.

Below, we talk about 3 mistakes that should be avoided in the accounting management of importers and give you important tips for efficient and assertive accounting management.

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1 - Unawareness of taxation

All companies, regardless of their industry or size, have taxes to pay. The accounting department is the one that surveys, calculates and arranges for the monthly payment of these amounts.

Knowing which taxes are levied on the business is of the utmost importance, as errors in payment can lead to problems with the tax authorities and jeopardize the company's activity.

When we talk about import companies, the issue is even more serious. After all, it involves trading between countries and a series of taxes.

In addition to ensuring that they are all paid off, when a company has an experienced professional with knowledge of the area, it can benefit from reduced tax burdens, exemptions and other advantages.

A good example is the exemption from Import Tax and the PIS and COFINS Contribution when they are destined abroad. In addition, it is possible to apply for tax exemption on the import of machinery and equipment, ICMS on the import of goods made at ports and airports.

With this in mind, we can understand that knowledge of taxation is among the most important factors in guaranteeing the performance of import companies. Therefore, evaluating the technical qualifications of accounting professionals is essential for efficient management.

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2 - Not controlling costs and expenses

When the importing company is unaware of its price as a Value Base, it will have great difficulty in assessing the cost of acquiring the goods and inputs necessary for its production, which could jeopardize the profitability of the business.

To avoid this, it is necessary to keep good control of costs and expenses in order to add value to the resale price, so that it is fair and guarantees the expected profitability.

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3 - Lack of precision when providing accounting information

When it comes to accounting documents, the work of the accountant is of the utmost importance to avoid errors in the information and ensure accuracy.

For importers, this factor is essential and avoids the risk of not proving movements, a problem that can lead to tax evasion with huge losses for the organization.

Importers' documentation must comply exactly with the requirements of the supervisory bodies. Some examples are:

• Invoice, a document with the same function as an invoice, used in international transactions. It must be duly completed with all the descriptions necessary to formalize the transfer and ownership of the imported goods;
• Pro forma invoice, a document issued by the importer describing what is being sold. This document is necessary for issuing the Import License (LI) and for payment;
• Tax Declaration with fiscal, exchange, commercial, tax and statistical information on the imported good. The transaction is processed via Siscomex;
• Packing List, issued by the exporter for shipment instructions and customs clearance.

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Conclusion 

Avoiding these mistakes in accounting management is essential for companies involved in foreign trade. By learning from the real-life examples of other organizations, it is possible to strengthen accounting management, ensuring efficient operations and legal compliance. Stay up to date on best practices and constantly evolving regulations to position your company for sustainable success in international trade.

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.