Summary
Tax planning proposes and coordinates the tax policy of the company, seeking to minimize the tax burden and complying with the respective laws. It establishes procedures for the company to comply with its tax obligations and have a favorable image before the tax authorities.
The problem of solvency in years of economic crisis is caused by the following: the devaluation of the national currency, the general rise in operating costs and decreasing working capital and the scarcity of the same.
Abstract
The tax planning proposes and coordinates the fiscal tax politics of the Company, looking for Minimizing tax compliance scammers under the respective laws. That paragraph provides procedures meet Company scams and tax obligations and they have a favorable image to the tax authorities.
The Problem of solvency about economic crisis is caused by the following: the devaluation of the national currency, the Boost overall operating cost and the declining Labor shortages.
Introduction
The business sector, being immersed in an economic environment of uncertainty, needs planning that must be applied in all productive areas: finance, human resources, marketing and production.
When speaking of an uncertain economic environment, we are also referring to a possible currency devaluation that results in a high inflation rate that has a strong impact on the company's finances.
Based on this, this essay analyzes the importance of tax planning, which will have as its primary objective the minimization of the tax burden.
It also addresses the issue related to the financial solvency of the company and some of the most important measures to preserve it.
Importance of tax planning and measures to preserve economic solvency
The planning of the different areas that make up a company helps to have an action plan that will help to deal with various internal and external problems that in one way or another affect the finances of the company.
Conceptualization of financial planning
Planning is identified as a symbolic prefiguration of the events and phenomena that are intended to be controlled.
Tax planning proposes and coordinates the tax policy of the company, seeking to minimize the tax burden and complying with the respective laws. It establishes procedures for the company to comply with its tax obligations and have a favorable image before the tax authorities.
The treasury is becoming more and more the majority shareholder of the company, as well as the possible corrector of the vices and deficiencies incurred by taxpayers. Tax collection no longer serves only to defray public spending, but also to redistribute wealth through indirect means of public service.
Tax planning today is also a necessity for the taxpayer, since the importance of carrying it out lies in the economic optimization of resources. Its objectives are the administrative savings of the state, legal security and civic rights.
For the exercise of fiscal planning, you need four extremely important elements: the capable subject, the specific object, an adequate instrument and an effective method.
The capable subject refers to the professional who exercises the public accounting career, who dominates the handling of legal facts and knowledge in terms of reasonableness, consistency and logic with the characteristics of the subject. You must meet the following four requirements:
A).- knowledge of the relative legal provisions.
Notions about the general principles of law, the hierarchy of laws, the structure and fundamental concepts of tax provisions.
B).- Knowledge of business or individual activities to develop.
Practical notion about the nature and characteristics of socioeconomic activities, including information technology, process optimization, human factor, commercialization, business strategies, logistics and quality.
C).- Imagination and memory to apply and combine the strategies derived from the fiscal savings to be used.
To become a truly good advisor and develop an excellent tax plan to follow, you must take advantage of all technical and professional attributes, overcome daily activities and generate a broader vision of your profession and the business world as a whole. The advisor that clients appreciate is the one who can identify the issues that really concern the client, who is proactive and always provides information relevant to the business, not only with a list of observations, but with ideas and suggestions that can be applied in practice and with a tangible benefit.
D).- Order, time and circumstance in which the strategies will be applied.
All planning must be adjusted to a hierarchical consideration of the priorities, the opportunity and the environment in which it will be applied.
The object of tax planning
The specific purpose of tax planning is to reduce the tax burden that can impact on any assets, that is, the reduction.
The means of fiscal planning are called strategies. All of them derive the types of fiscal savings to exercise.
In the case of legal entities or assimilable to them by legal provision, the strategies must be applied before starting activities, when starting the operating entity, during the course of its operations, when acquiring other activities or parts of them, when establishing other entities, when merging, dissolving, liquidating, after liquidation.
The method of tax planning is synthesized in five fundamental stages:
1.- The analysis of the case.
It is about a present and future evaluation of the conditions, characteristics and amount of the patrimony subject to planning.
2.- The selection of possible strategies.
The strategies must be congruent with the results obtained in the case analysis.
3.- The assessment or evaluation of scope.
The determination of the effective savings resulting from the selected strategies and their expected dosage is made.
4.- The implementation of the planned strategies.
Implementation of each of the phases, formalities, procedures, documents, etc. With the effect of ensuring the concordance of what was planned with its practical execution.
5.- the maintenance of the plan.
It is extremely necessary to keep the execution of the plan up to date, adjusting and readjusting it according to the circumstances.
Critical points for financial planning
- Deep understanding of the strategy, especially growth plans, if any, and the competitive context (likely actions of competitors and the company's competitive posture) in which it will operate Deep understanding of the likely future economic environment. This is reflected in the key assumptions of economic growth, inflation, exchange rates, interest rates, and all those that are needed to make the financial projection. The Financial Projection needs a base from which to start. This base is the history of the company and specifically, for the financial projection to give us the numerical results, it needs the Statement of Financial Position or Balance Sheet for the immediately preceding year.
Financial Planning is not an extrapolation from history. This, the history, gives us the information that is inherited to the future, for example the amount of the existing debt and its payment programs. This is necessarily taken into account.
History also provides us with the experience of how certain variables have behaved as a function of others, but this is not all that needs to be done.
From the past we take what is relevant and necessary for the future and from this, all the changes that business strategies and operating plans imply are made.
Economic solvency
One of the ways to evaluate the financial solvency of a company is to compare the volume of its short-term liabilities with the amount of current assets. The problem of solvency in years of economic crisis is caused by the following:
- the devaluation of the national currency, the general rise in operating costs, the decreasing working capital and the scarcity of the same.
Some of the measures to preserve solvency in times of economic crisis include a critical analysis of traditional financial planning techniques, flexible budgets and resource flows, resource flows, methods for studying and forecasting the utility, breakeven point, cost of capital and financial structure.
The financial solvency of the company is directly related to:
- instruments for information on solvency, monetary results and their effects on solvency, measures to improve solvency in times of inflation.
conclusion
Tax planning has become a necessity for the state and the taxpayer. It is necessary for the state because it allows it to technically and rationally combat simple and excessive tax fraud incurred by a misinformed taxpayer.
The taxpayer requires it for the economic optimization of resources.
The management of the company must examine in detail any contingency that concerns it, in order to understand in advance all its financial consequences, and thus identify them more quickly and give a concrete response.
In order to know the solvency status of a company, it is necessary to analyze them through financial reasons that when combined with the executive's experience, corrective and preventive decisions are made.
Bibliography
- Tax collection 2000, 1st edition, Mexico, ISEF Fiscal Editors, 2000 LABRADOR Goyeneche, Francisco Javier. Fiscal environment in the face of the economic crisis. México, IMCP, 1996.Moreno Fernández, Joaquín A. Finance in the company: information, analysis, resources and planning. Mexico, IMCP, 2002.
