International competitiveness: how strategic accounting can help exporters

In an increasingly competitive global environment, companies operating in the foreign trade face challenges that go far beyond exchange rate fluctuations or customs barriers. 

The pressure for efficiency, innovation, and tax compliance requires solid planning and strategic decisions based on accurate data. In this context, strategic accounting is no longer just a recording tool, but plays a central role in the management of export-oriented businesses.

By integrating financial analysis, tax planning and performance management, strategic accounting becomes a key ally in sustaining international competitiveness and ensuring the longevity of Brazilian companies on the global stage. Want to know more? Read the text to the end! 

Why is competing in the international market a constant challenge?

Exporting is never just about winning customers from other countries. In practice, when trying to gain ground in global markets, Brazilian companies face a challenging combination of fees, taxes, unique bureaucracies, technical barriers, and, of course, exchange rate volatility. 

Second survey by the National Confederation of Industry, Almost half of exporting companies earn less than 10% from export sales. This shows how difficult it is to break away from dependence on the domestic market, even for organizations that are already internationally established.

Factors that increase international difficulty

• Complex taxation on exports;
• Different compliance obligations in each country;
• Specific regulations such as drawback, RECOF, and tax incentives;
• Difficulty in passing on exchange rate variations to the final price;
• Cash management and foreign currency contracts.

Compared to operating in the domestic market, operating internationally requires preparation in areas that often escape the routine of purely national companies. In many cases, a tax calculation error can consume the entire margin of the business.

What is strategic accounting and how does it relate to foreign trade?

A strategic accounting is a methodology that seeks to transform accounting information into a source of intelligent decisions, guiding companies toward expansion and risk reduction.

In the context of exports, this approach stands out because it considers global variables: recoverable taxes, tax benefits, foreign trade ancillary obligations, and customized reports for hard currency management.

Operational challenges in Brazil are multifaceted and often invisible. They are not limited to high taxes, but also include slow bureaucratic processes and complex tax obligations. For exporting companies, these factors can significantly impact competitiveness in the global market.

Many organizations still do not take full advantage of the benefits offered by legislation, such as special drawback and RECOF regimes. These alternatives offer opportunities for tax reduction or suspension on the purchase of inputs for export, allowing companies to gain agility and competitiveness.

The drawback allows inputs for production to be imported without paying federal taxes, when it is already known that the final product will be exported. RECOF, on the other hand, is suitable for industries that operate with large volumes, allowing them to avoid paying taxes on imported products while they remain in stock. This makes a difference in cash flow and competitiveness.

With the right incentive, the price becomes more attractive and tax risks fall dramatically. It is possible to invest better, plan for growth, and defend profit margins. All it takes is an assertive choice of tax regime to transform foreign trade results.

Management of ICMS, PIS, and COFINS credits for exporters

Exporting exempts the company from federal taxes such as PIS and COFINS on foreign sales, but the benefit only materializes if the accounting department knows how to calculate, request, and monitor the credits. This increases the balance available for investment in the company's own expansion and sets it apart in the fierce global competition.

Although ICMS is a state tax, it also has specific rules that make it possible to recover credits that had previously been overlooked in internal supply chains. Many companies miss out on the opportunity to receive significant amounts because they do not have accounting processes adapted to exports.

How can you get the best tax conditions? 

• Continuously monitor the movement of tax credits;
• Produce detailed reports on the balance of available credits;
• Stay up to date with changes in legislation.

Choosing the right tax regime is vital to balancing credit volume and tax payments. A decision based on customized reports can make international business much more viable.

Compliance in foreign trade

When it comes to exports, it is not enough to be in good standing with the Internal Revenue Service. Laws in purchasing countries, international agreements, treaties, and customs issues impose new layers of obligations. In this scenario, compliance is an ally in reducing fines, protecting against delays, and even acting as an anchor for reputation.

Strategic accounting plays an active role in mapping the requirements of each destination country, reviewing international contracts, adjusting internal controls, and ensuring the correct provision of information to regulatory agencies.

• Monitoring of foreign exchange obligations, licenses, and certificates;
• Adjustment of financial statements to international standards;
• Training and updating of internal teams;
• Early identification of regulatory risks.

Sooner or later, every exporter will need to adapt internal practices to stay in line with regulatory agencies, whether domestic or foreign. Evaluate whether to maintain internal accounting or outsource it becomes a strategic decision to ensure compliance and flexibility without losing control of operations.

Cost reduction and sustainable expansion

Want to grow without taking unnecessary risks? The key is to see all the details. From analyzing the effective cost of each export to taking advantage of tax incentives, strategic accounting reduces costs while preparing the company to expand its global presence.

On the one hand, specialized reports allow you to choose more advantageous products, identify cost-effective logistics routes, and predict the impact of new tax legislation. On the other hand, procedures such as PIS/COFINS credit recovery and choosing the best tax regime ensure financial breathing room even when the dollar is high.

Expansion requires process modernization and an open mindset toward digital tools.

• Implementation of integrated accounting management systems
• Process outsourcing (BPO) to gain agility
• Continuing education for tax and financial teams
• Adherence to platforms that simplify international compliance

Turning challenges into opportunities

Strategic accounting is not just a means of avoiding fines, but rather a way to grow in a sustainable and reliable manner. With each adjustment to the process or tax regime, exporters gain the ability to negotiate on equal terms with foreign players.

Ultimately, gaining ground on the world stage requires much more than good products: it requires strategic accounting management to control costs, comply with rules, and see opportunities where others only see difficulties. Regardless of size or sector, companies that invest in customized reports, qualified consulting, and cutting-edge technology are better prepared to face the global challenge.

CLM Controller is ready to be your partner on this journey. Learn about our services, ask questions, and see how accounting advice can transform your international operations: get in touch.