Tax Consulting

Credit recovery

The primary aim of this solution is to enhance the financial efficiency of medium and large companies. It does so by identifying and recovering overpaid or incorrectly paid funds to municipal, state, or federal tax authorities. This can be either to leverage administrative credits or as a result of favorable court decisions.

 

The intricacies of tax legislation often lead to errors in tax calculation and remittance, resulting in overpayments. Additionally, errors in system parameterization and data input, changes in legislation, and overlooked tax benefits can result in unutilized tax credits for companies.

 

Consequently, our services cover the entire process, starting from the identification of tax credits to the refund or offset. 

 

We initiate the process with an initial diagnosis to determine the presence of tax credits and estimate their potential value. This initial phase is provided at no cost, allowing your company to decide which credits to use and the most opportune time to do so. Our compensation is contingent on your company utilizing these credits, and we manage all the necessary procedures to capitalize on these opportunities.

 

We offer recovery services in the administrative sphere, which includes amending declarations and preparing offset and refund requests through programs such as Perdcomp, e-Credac, and other methods. Additionally, we handle judicial credits by qualifying and managing these credits effectively.

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Main activities

  • Credit offset
  • Review of past operations
  • Assistance in refunding amounts
  • Analysis and validation of credits
  • Identification of eligible credits
  • Communication with tax authorities
  • Communication with tax authorities

  • What is the Tax Credit Recovery service?

    The Tax Credit Recovery service is a solution focused on identifying and recovering amounts overpaid or improperly paid to municipal, state, or federal tax authorities. Our goal is to assist medium and large businesses in enhancing their financial efficiency by utilizing administrative credits or credits obtained through favorable judicial decisions.

     

    By recovering overpaid amounts, the Tax Credit Recovery service injects significant resources into your cash flow. These resources can be reinvested in your business, providing greater liquidity and financial flexibility for business growth and ongoing operations.

  • How can errors in calculations and product parameterization within the ERP system result in untapped tax credits?

    Navigating the intricacies of the tax landscape can be challenging, especially considering the frequent changes and updates in tax laws. The inherent complexity of these regulations can lead to inaccuracies and incorrect product parameterization within a company’s ERP system. These errors can directly impact the amount of taxes owed.

     

    When products are not properly parameterized in alignment with current tax regulations, it can give rise to situations where tax calculations are executed erroneously. This often leads to overpayments, as the systems may not account for all the intricacies and exceptions stipulated in the applicable tax laws.

     

    Moreover, the dynamic nature of tax laws, coupled with government-granted tax incentives, can easily escape the notice of the team responsible for a company’s fiscal and tax operations. These alterations can directly influence the sum of taxes due and the ability to leverage available tax credits.

     

    This is precisely where the significance of our specialized Tax Credit Recovery team becomes apparent. We possess a profound understanding of tax law complexities and diligently monitor regulatory updates and tax incentives. Our mission is to unearth these often overlooked opportunities, allowing your company to recover erroneously paid amounts

  • How is the initial diagnosis of tax credits conducted?

    The initial diagnosis of tax credits is a crucial step in the Tax Credit Recovery process, the purpose of which is to identify opportunities for recovering overpaid or improperly paid amounts to the tax authorities. 

     

    Our team of experts begins this process by conducting a thorough analysis of your company’s records and tax operations. We use advanced systems and analytical tools to meticulously examine your tax transactions. During this phase, we look for patterns, trends, and discrepancies in tax calculations, product parameterization, and other relevant areas.

     

    By identifying transactions and situations that may indicate the presence of tax credits, we prepare a report highlighting the estimated value of the recovery potential. This report provides an initial overview of available opportunities and specific areas where tax credits can be identified.

     

    We understand that each company is unique and has specific needs. Therefore, after presenting the diagnosis and the initial estimate of tax credits, we work collaboratively with you to understand which credits are most relevant to your company and the most appropriate timing for their utilization. 

     

    Our approach is highly customized and focused on meeting your financial needs and goals. Our remuneration for services occurs only when your company effectively uses the identified and recovered credits. This demonstrates our commitment to ensuring that our efforts align with tangible results for your company.

  • What are the main benefits of identifying and recovering tax credits?

    Identifying and recovering tax credits brings a series of benefits that can significantly impact your company’s financial health and competitiveness. In addition to providing significant financial savings, these benefits encompass various crucial aspects:

    1. Significant Financial Savings: Recovering tax credits can lead to substantial financial savings for your company. By identifying and recovering amounts paid incorrectly or in excess, you can allocate these resources to other areas of your business, promoting more efficient capital usage.
    2. Strengthening Cash Flow: Tax credit recovery directly impacts your company’s cash flow by injecting funds that were incorrectly directed towards improper tax payments. This provides more liquidity for investments, operations, and growth.
    3. Increased Competitiveness: By optimizing your financial resources through tax credit recovery, your company gains a competitive advantage. These resources can be reinvested in innovation, expansion, and operational improvement, making your company more agile and competitive in the market.
    4. Efficient Tax Compliance: The identification and recovery of tax credits contribute to your company’s efficient tax compliance. By adjusting and correcting incorrect payments, you avoid potential legal issues and fines, maintaining a strong relationship with tax authorities.
    5. Smart Utilization of Tax Benefits: Tax legislation often offers tax benefits that can be utilized by companies. The precise and strategic identification of these benefits can generate significant financial advantages for your company.
    6. Tax Security and Compliance: Tax credit recovery also contributes to your company’s tax security and compliance. By making the necessary corrections and adjustments, you prevent future issues related to audits and inspections. 
    7.  Analysis of Retroactive Periods: The identification of tax credits often includes the possibility of analyzing retroactive periods. This means that you can recover amounts paid improperly over previous years, further strengthening your financial situation.

  • How are the results of Tax Credit Recovery presented?

    Transparency and clarity are paramount when conveying the outcomes of Tax Credit Recovery. Our meticulous approach ensures that you gain a comprehensive understanding of the recovery opportunities and the most effective ways to leverage them.

     

    Upon the completion of the analysis and identification of tax credits, we compile a comprehensive, detailed report for your company. This report encompasses all identified tax credits, highlighting the respective values and offering clear insights into the recovery possibilities. However, our commitment extends beyond this point.

     

    We recognize that identifying credits is just the beginning; it is equally vital that you can assess the practicality of utilizing these credits. Hence, our report not only enumerates the values but also categorizes them based on their feasibility for offsetting. Each credit is evaluated with respect to prevailing legislation, your company’s financial status, and the essential procedures for actual recovery.

     

    Additionally, the report provides explicit guidance on the steps your company should follow to capitalize on the recovery opportunities. We outline the necessary procedures, required documentation, and associated timelines.

     

    Initiating the Tax Credit Recovery process is straightforward—simply get in touch with us. Our specialized team will engage in a comprehensive discussion to understand your specific requirements. Subsequently, we conduct an exhaustive initial diagnosis to pinpoint the available tax credits for your company. Based on this diagnosis, we devise a tailored plan that takes into account your unique circumstances and financial objectives.

  • What is the Tax Credit Recovery service?

  • How can errors in calculations and product parameterization within the ERP system result in untapped tax credits?

  • How is the initial diagnosis of tax credits conducted?

  • What are the main benefits of identifying and recovering tax credits?

  • How are the results of Tax Credit Recovery presented?

  • What is the Tax Credit Recovery service?

    The Tax Credit Recovery service is a solution focused on identifying and recovering amounts overpaid or improperly paid to municipal, state, or federal tax authorities. Our goal is to assist medium and large businesses in enhancing their financial efficiency by utilizing administrative credits or credits obtained through favorable judicial decisions.

     

    By recovering overpaid amounts, the Tax Credit Recovery service injects significant resources into your cash flow. These resources can be reinvested in your business, providing greater liquidity and financial flexibility for business growth and ongoing operations.

  • How can errors in calculations and product parameterization within the ERP system result in untapped tax credits?

    Navigating the intricacies of the tax landscape can be challenging, especially considering the frequent changes and updates in tax laws. The inherent complexity of these regulations can lead to inaccuracies and incorrect product parameterization within a company’s ERP system. These errors can directly impact the amount of taxes owed.

     

    When products are not properly parameterized in alignment with current tax regulations, it can give rise to situations where tax calculations are executed erroneously. This often leads to overpayments, as the systems may not account for all the intricacies and exceptions stipulated in the applicable tax laws.

     

    Moreover, the dynamic nature of tax laws, coupled with government-granted tax incentives, can easily escape the notice of the team responsible for a company’s fiscal and tax operations. These alterations can directly influence the sum of taxes due and the ability to leverage available tax credits.

     

    This is precisely where the significance of our specialized Tax Credit Recovery team becomes apparent. We possess a profound understanding of tax law complexities and diligently monitor regulatory updates and tax incentives. Our mission is to unearth these often overlooked opportunities, allowing your company to recover erroneously paid amounts

  • How is the initial diagnosis of tax credits conducted?

    The initial diagnosis of tax credits is a crucial step in the Tax Credit Recovery process, the purpose of which is to identify opportunities for recovering overpaid or improperly paid amounts to the tax authorities. 

     

    Our team of experts begins this process by conducting a thorough analysis of your company’s records and tax operations. We use advanced systems and analytical tools to meticulously examine your tax transactions. During this phase, we look for patterns, trends, and discrepancies in tax calculations, product parameterization, and other relevant areas.

     

    By identifying transactions and situations that may indicate the presence of tax credits, we prepare a report highlighting the estimated value of the recovery potential. This report provides an initial overview of available opportunities and specific areas where tax credits can be identified.

     

    We understand that each company is unique and has specific needs. Therefore, after presenting the diagnosis and the initial estimate of tax credits, we work collaboratively with you to understand which credits are most relevant to your company and the most appropriate timing for their utilization. 

     

    Our approach is highly customized and focused on meeting your financial needs and goals. Our remuneration for services occurs only when your company effectively uses the identified and recovered credits. This demonstrates our commitment to ensuring that our efforts align with tangible results for your company.

  • What are the main benefits of identifying and recovering tax credits?

    Identifying and recovering tax credits brings a series of benefits that can significantly impact your company’s financial health and competitiveness. In addition to providing significant financial savings, these benefits encompass various crucial aspects:

    1. Significant Financial Savings: Recovering tax credits can lead to substantial financial savings for your company. By identifying and recovering amounts paid incorrectly or in excess, you can allocate these resources to other areas of your business, promoting more efficient capital usage.
    2. Strengthening Cash Flow: Tax credit recovery directly impacts your company’s cash flow by injecting funds that were incorrectly directed towards improper tax payments. This provides more liquidity for investments, operations, and growth.
    3. Increased Competitiveness: By optimizing your financial resources through tax credit recovery, your company gains a competitive advantage. These resources can be reinvested in innovation, expansion, and operational improvement, making your company more agile and competitive in the market.
    4. Efficient Tax Compliance: The identification and recovery of tax credits contribute to your company’s efficient tax compliance. By adjusting and correcting incorrect payments, you avoid potential legal issues and fines, maintaining a strong relationship with tax authorities.
    5. Smart Utilization of Tax Benefits: Tax legislation often offers tax benefits that can be utilized by companies. The precise and strategic identification of these benefits can generate significant financial advantages for your company.
    6. Tax Security and Compliance: Tax credit recovery also contributes to your company’s tax security and compliance. By making the necessary corrections and adjustments, you prevent future issues related to audits and inspections. 
    7.  Analysis of Retroactive Periods: The identification of tax credits often includes the possibility of analyzing retroactive periods. This means that you can recover amounts paid improperly over previous years, further strengthening your financial situation.

  • How are the results of Tax Credit Recovery presented?

    Transparency and clarity are paramount when conveying the outcomes of Tax Credit Recovery. Our meticulous approach ensures that you gain a comprehensive understanding of the recovery opportunities and the most effective ways to leverage them.

     

    Upon the completion of the analysis and identification of tax credits, we compile a comprehensive, detailed report for your company. This report encompasses all identified tax credits, highlighting the respective values and offering clear insights into the recovery possibilities. However, our commitment extends beyond this point.

     

    We recognize that identifying credits is just the beginning; it is equally vital that you can assess the practicality of utilizing these credits. Hence, our report not only enumerates the values but also categorizes them based on their feasibility for offsetting. Each credit is evaluated with respect to prevailing legislation, your company’s financial status, and the essential procedures for actual recovery.

     

    Additionally, the report provides explicit guidance on the steps your company should follow to capitalize on the recovery opportunities. We outline the necessary procedures, required documentation, and associated timelines.

     

    Initiating the Tax Credit Recovery process is straightforward—simply get in touch with us. Our specialized team will engage in a comprehensive discussion to understand your specific requirements. Subsequently, we conduct an exhaustive initial diagnosis to pinpoint the available tax credits for your company. Based on this diagnosis, we devise a tailored plan that takes into account your unique circumstances and financial objectives.

Successful cases

Understand how Credit Recovery has helped our clients!

Case 1: Increased credit through calculation review.

Our goal in this work was to review the calculation made by the client’s internal team for the tax credit assessment. The idea for this review came from the law firm, which recognized the significance of the amount calculated and advised their client to seek tax consultancy for a revision.

 

The client’s internal team managed to perform the entire credit assessment using Excel and formulas. However, potential errors can arise, such as issues in the product database, limitations of the program itself, and lack of data integration (if obtained from external sources).

 

With the work in hand, we analyzed the files individually, cross-referenced data from different statements, and then compared the results with those presented by the client. We found 6 discrepancies that increased the credit amount to R$2,741,565.72.

 

The client went from R$26,863,762.63 to R$29,605,328.35.

Initial Assessment for Potential Available Credits

In collaboration with a law firm, we conducted an initial assessment for a substantial medical cooperative.

 

Our analysis encompassed a 17-month sample involving more than 18 CNPJs (National Register of Legal Entities), where we scrutinized employer INSS (National Institute of Social Security) and third-party contributions related to indemnity payments, expenditures on medical and dental coverage, accrued unused leave days, unutilized bonus leaves, transportation allowances, meal vouchers, and maternity leave.

 

Our initial diagnosis estimated a potential credit recovery amount of R$4 million for the preceding five years. Following the final judgment, we conducted an exhaustive evaluation of the sum, which, when updated, amounted to over R$3 million.

They are already with us!

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In today's dynamic and interconnected business world, third-party risk management emerges as a strategy for the success and sustainability of organizations. With the increasing complexity of supply chains and the need for external services, it becomes urgent to master the nuances of TPRM.   Contractor risk management is an essential activity for any company, regardless of its size or segment. It is through it that suppliers can remain in compliance with laws and regulations, as well as continue to provide quality services with maximum security, and beyond.   From ensuring regulatory compliance to optimizing operational efficiency and mitigating risks, effectiveness in managing external partners has become a competitive advantage, which is what contractor risk management focuses on. In this text, we will go through some important points of this growing area worldwide.    What is Third-party risk management?    Contractor Risk management is the process of controlling the risks of outsourcing through the identification, selection, evaluation, contracting, monitoring, and relationship with suppliers. It is the way in which the relationship between companies/entities/individuals is supervised in a way that provides the greatest possible security.  Through the contractor risk management flow, suppliers provide information about their third parties, and the contracting company or consultancy analyzes the documents to understand if the legal and contractual requirements have been met. The goal here is to understand if the requirements established at the time of contracting are being followed.  It is through contractor risk management that risks such as slave labor, deaths, accidents, and company bankruptcies are mapped preventively. After all, these are cases that can cause irreparable damage to the business and are not always observed naturally. Effective contractor risk management aims at more sustainable and mutually beneficial relationships between companies and suppliers.    Why Implement Contractor Risk Management?     Contractor risk management impacts the entire organization. The decision to implement it will define whether these impacts will be positive or negative.   It is widely known that outsourcing services generates operational risks, both in compliance and security. One of the benefits of contractor risk management is to mitigate these risks generated by hiring suppliers, which will allow for the harmonious continuity of business.  In addition, all companies are subject to regulations and laws, which must be followed. With active contractor risk management, it is possible to monitor suppliers and understand if they are operating in compliance with the legislation. This avoids fines and penalties that could eventually fall on your company.   Not to mention that third-party services impact your operational efficiency. How? The quality of the products/services provided is directly linked to your product. Whether by labor or raw material, this relationship directly and deeply impacts your organization, so it is important to pay close attention.  These are some of the strong points we highlight here, but there are many others related to them. Operational efficiency, focus on core business, innovation, strategy, all of this has an impact on your company.    When Should I Start Contractor Risk Management?    The most objective answer would be when your supplier brings some risk. However, there are suppliers that do not bring risks or have very low risk, this does not necessarily mean that there should not be any monitoring, only that it should be evaluated how the process fits each situation.   Here at Bernhoeft, we recommend starting third-party management as soon as your company starts to rely on external suppliers for products, services, or resources essential to its operations. This usually happens as the company grows and/or expands its activities. However, even for smaller companies, it is important to consider third-party management from the start, especially if there are plans to outsource certain functions or processes.   Furthermore, if your company is already involved with external suppliers but has not yet implemented a formal management of these relationships, it is recommended to start as soon as possible. As we read earlier, third-party management helps ensure that the company is prepared to deal with the challenges associated with outsourcing.    How to Implement Effective Contractor Risk Management?     The way that generates the best results is: integrating technology, a specialized team, and a system capable of operating with a large volume of data. Having a partner makes this process easier and safer, since they have all the skills to deal with the essential steps of the project. And here we are talking about LGPD, information flow, management of contractors, and more.  By combining experienced and qualified professionals, we can establish solid third-party management. This not only encourages suppliers to become increasingly involved in the processes but also alleviates the work of contract managers     We have gathered some steps of the process:   Define objectives and goals; Identification and selection of suppliers; Supplier assessment; Contracting of suppliers; Relationship with suppliers.   How to Find a Good Partner for Contractor Risk Management   Finding the ideal partner for third-party management is just as important as implementing it. Below we have gathered two points that we consider objective and essential for your company to observe when searching for a partner.  Understand your real needs first Before you start looking for a partner, it is essential to understand your specific third-party management needs. Consider the types of services or products that will be outsourced, the compliance requirements, the risks involved, and your strategic objectives. Some questions can guide you at this time:   What services does the organization need to outsource?  What are the quality and performance requirements that the organization expects from its suppliers?  What are the risks that the organization needs to mitigate?    Research the market and seek references   Conduct a detailed market research to identify potential third-party management partners. Understand the history of the chosen companies, check if they have the necessary qualifications to meet the needs identified in point "1", and if it makes you feel more secure, ask for references from other clients.    Third-Party  Risk Management x Bernhoeft     We are the first company in Brazil to provide third-party management services. For over 20 years, the #WeLoveGRT movement has been running through our veins, driving innovation and the desire to do more and better.  In Brazil, our work is already widely recognized and referenced. We were elected the best third-party management company in Brazil for four consecutive years, by the Inbrasc award 2020/2021/2022/2023. Now it's time to take on the world!   Our team has over 650 qualified professionals to add value and make a difference in the lives of each of our clients. We work by helping client companies and their suppliers to reduce outsourcing risks, promoting greater security and compliance with current laws and regulations.   To achieve this, we work on two fronts:    Labor Analysis   In labor analysis, we act proactively to ensure that outsourced workers receive their rights at the right time, reducing the chances of your company having to pay the severance pay of suppliers who have failed to pay or have not paid their employees correctly.   If, even so, labor lawsuits arise, we will work together with your company's legal department, providing all information and documents for the preparation of the defense. Proving the values that have already been paid to employees and reducing your risks and those of your suppliers.   Our differential is not to stay only in the analysis of the documentation, if any error is identified, we will work as a consultancy guiding the suppliers on the errors and how to correct them.   Mobilization   Third-party mobilization is a real challenge, as the documents vary according to the risk of the employee's activity. Each document has a different validity period to manage, and we need to be agile in releasing access quickly and without compromising the safety of the company and the outsourced employee.   We work in the mobilization of outsourced workers and take on everything from the electronic receipt for analysis of occupational safety and health documents to the permission of access to your organization's entry control system.  These more than 20 years represent a great growth in our operations, we feel ready to expand our work to the world. If you are interested and would like to receive a contact from a specialist consultant, simply click on the following link: Talk to a specialist 

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While accounting procedures can sometimes be confusing and challenging for Brazilian investors, imagine the complexities involved for foreign companies.   We often encounter questions about everything from opening a foreign company in Brazil to routine procedures, which is completely understandable given that it involves a different country, new legislation, and new processes.   With that said, the goal of this text is to clarify and understand the specific requirements of Brazilian accounting standards for international companies.    Specificities of Brazilian accounting for foreign companies  It is common for companies to have operations in different countries. Understanding the specificities of each country is crucial for ensuring that the new unit complies with local legislation. In Brazil, accounting standards are based on the International Financial Reporting Standards (IFRS), but there are some specificities.  It is important to understand that the goal of international accounting standards is not to fully standardize accounting practices across the globe, but rather to harmonize and make them more accessible.    This makes it easier for any business owner to access financial statements and understand their meaning, not only for each item analyzed by their company, but also when reading reports from other companies.   This process, known as accounting convergence, allows for easier comparison of financial statements from different companies and facilitates cross-border investment and business transactions.  In Brazil, the process of convergence involves adapting international standards to the local reality, resulting in some specificities that differ from the requirements in other countries.    10 Key considerations for foreign companies accounting in Brazil    Exchange rate risk Exchange rate variation is not just about converting foreign operations into the company's local currency, there are accounting accounts that are adjusted by the exchange rate on the closing date (a single date) and other accounts that are adjusted by the average exchange rate (period of dates)    Transfer Price The value of goods/services transferred between countries must be calculated correctly to avoid abusive tax practices, considering that the negotiated values can vary significantly depending on the country. The Brazilian tax authorities closely monitor these values, as they view related companies as a single business entity, and they monitor whether the generated profits are directed to avoid paying taxes in regions with attractive tax rates, losing its share of taxation in Brazil.  If the transfer price does not reflect the market price, tax authorities may consider that the company is transferring profits abroad and impose tax penalties. There is no direct formula for calculating transfer prices, and the following aspects must be considered: cost-plus method, comparable uncontrolled price (CUP) method, resale price method and future sale price method.    Invoice Foreign transactions use the invoice document to detail the commercial transaction. It is necessary to verify that the transfer price indicated in the invoice is correct, as well as the taxes involved that will be described in this document.     Intercompany loans Loans entered into between foreign companies must comply with the legal aspects of the countries involved. The points of inspection in Brazil are mainly present in the taxes on the interest of the operation and the transfer price practiced of the loan.     Balance sheet consolidation In cases where a partner has interests in two or more foreign companies, they can verify the total result of these companies through the consolidation of balance sheets. This statement will provide a more realistic view of the result that was actually generated outside the economic group.      POC (Percentage of Compliance) Accounting for POC allows revenue to be recognized in the accounting records according to the progress of what was agreed upon in the contract with the customer, and not just the recognition of revenue at the time of the invoice issuance. This use allows a product/service sold to be recognized in the company's results over time.   In Brazil, POC is widely used in the real estate sector, providing an accounting view for recording according to the progress of the work. However, from a tax perspective, the accounting of taxes due must follow the issuance of the Nota Fiscal (invoice). Therefore, care must be taken in the accessory declarations to correctly evidence the POC adjustments for calculation based on the billing, in order to find the correct bases for the taxes due.   Over the years, we have seen the growth of the use of POC in other business sectors, such as the IT sector.      Leasing The lease contract has undergone considerable changes in its accounting treatment, considering that for many years it was considered a rental expense. However, with recent changes, it has come to be seen as the right to use, and therefore recorded as an asset in companies that are enjoying the benefits of use.   This change has impacted the results of companies and needs to be controlled in the tax assessment in order to avoid the risk of erroneous taxation.     Inventory/Cost Inventory accounts that will be taken to the result at a later date as a cost need to be controlled and reviewed by the accounting department to ensure that the inventory control method is following the practices used in Brazil (PEPS/Weighted Average) different from abroad where some countries allow the practice (LIFO).   In addition to this control, it is important to emphasize the correct measurement of the values at which the inventory is recognized, being at its cost value or at its net realizable value (the lower of the two).     Fixed assets Fixed asset control is necessary not only for asset monitoring and heritage control, but it has also been a major risk factor for companies in the tax aspect related to depreciation. Companies that have a high volume of fixed assets and use depreciation to reduce taxes on profit need to have detailed control of fixed assets, including by item (item class) identified.     Intangible assets Accounting standards require detailed information about intangible assets, including the monitoring of research and development phases by the accounting department in order to obtain assertive control over what should be recognized in the company's results/assets.   The definitions of definite/indefinite useful life also have implications for the accounting treatment of intangible asset amortization, which will also impact the company's results. Aspects such as technological obsolescence are mentioned in the accounting standard for technology companies, bringing with them a constant monitoring of market trends in order to avoid overvalued intangible assets in the accounting records.   That said, it is essential to have secure and documented records of accounting transactions, thus bringing assertiveness and security to the results generated and distributed to shareholders, as well as in case of tax audits.   Therefore, it is important for a foreign company to have well-informed and prepared accounting to face these risks and ensure compliance with Brazilian tax and accounting laws. In the tax area, the risks become high considering that the Federal Revenue Service does not adopt international standards and has its own aspects for calculating taxes.    We can help you!   Here at Bernhoeft, you will find a team of specialists in foreign companies, from opening to accounting routines. One of our differentials is that, in this cell, everyone speaks English. A great shortcut for everything to go well.   If you understand that you need to count on a safe, assertive and experienced company, contact us!   

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The globalization of businesses has brought with it the need for partnerships and collaborations among companies in different parts of the world. In the business context, third-party risk management and Due Diligence has become a crucial parts of business success and sustainability, especially in the United States, where the complexity of business relationships is evident. In this article, we will explore the importance of third-party risk management in the United States and how it has become an essential practice for organizations seeking to thrive in the American Market And also highlight the importance of an efficient due diligence process.   Complex Business Environment The United States has one of the most dynamic and competitive business environments globally. Collaboration with third parties is often inevitable for both foreign and local companies. However, this interdependence also brings a host of challenges and risks that need to be effectively managed. Third-party risk management allows companies to understand and mitigate potential threats, ensuring a safer and more sustainable operation.   Compliance and Regulations The United States is known for its stringent labor laws and clear regulations. Non-compliance with these laws can result in severe consequences, including substantial fines and damage to the company's reputation. For instance, when workplace accidents occur, the costs per incident range between $40,000 and $50,000 per accident and $1 to $2 million per fatality, according to NSC Injury Facts. By integrating a proactive approach to third-party risk management, including HSE, organizations can ensure that their partners align with local standards and regulations, thus mitigating risks associated with compliance.   Reputation Protection A company's reputation is a valuable asset, and in the United States, where consumer trust is crucial, third-party risk management plays a vital role in protecting that reputation. Partnerships with suppliers or collaborators who do not adhere to the same ethical and quality standards can have a significant impact on the company's image. The proactive identification and management of these risks help preserve consumer trust and maintain a positive reputation in the market.   Information Security Cybersecurity and information protection have become critical priorities in contemporary businesses, as the average global cost of a data breach per country exceeds $3 million, according to OSHA. Collaboration with third parties often involves sharing sensitive data, increasing vulnerability to cyber threats. Third-party risk management in the United States includes the implementation of robust security measures to protect confidential information while ensuring the integrity and privacy of data.   Business Resilience Uncertainty is a constant in business, and a company's ability to adapt to unexpected changes is essential. Third-party risk management not only identifies imminent risks but also allows the development of resilience strategies. By anticipating and planning for potential challenges, organizations can maintain a more robust stance in the face of disruptions in the business environment. In conclusion, third-party risk management in the United States is an imperative practice for companies seeking to thrive in a complex and highly regulated business environment. By adopting a proactive approach to identifying, assessing, and mitigating risks, organizations can not only protect their interests but also build lasting and successful relationships in one of the world's largest markets.   How can we help? Since 2003, we have been assisting service-receiving companies and their suppliers in achieving greater security through the provision of auditing services that cover all phases of third-party contracts. Given the North American scenario, it is crucial that companies turn to specialized third-party management. With a special focus on security, we monitor compliance with labor, social security, contractual, and legal obligations, as well as other elements that promote greater compliance and risk reduction for companies using our services.

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As companies expand their operations and extend their Vendor Relationship Management, effective third-party management becomes a vital piece in the puzzle of business success. In the United States, a complex and regulated business environment demands a strategic and proactive approach to mitigate risks associated with external partnerships. This article explores the challenges and opportunities faced by organizations when implementing third-party management in the United States.  Third-Party Management: Understanding and Regulatory Compliance The first crucial point of successful implementation involves a deep understanding of U.S. regulations and compliance standards, particularly those related to the Occupational Safety and Health Administration (OSHA). Each industry and region may have specific requirements, and compliance is crucial to avoid legal issues. Hiring legal expert familiar with U.S. business regulations ensures that third-party management practices align with local laws, covering areas such as contracts, data protection, and industry-specific regulations.  Customized Due Diligence Processes  The second focus is on developing customized due diligence processes tailored to the U.S. business environment. This includes comprehensive assessments of potential third-party partners, considering factors such as financial stability, legal history, and ethical practices. Establishing a due diligence framework aligned with U.S. business practices ensures a thorough evaluation and helps mitigate risks associated with third-party commitments.  READ MORE: Third-Party Risk Management: The Importance of Documentary Evidence Cultural Sensitivity and Communication Strategies   Cultural foundations play a significant role in the U.S. business landscape. The third point emphasizes the importance of cultural sensitivity and effective communication strategies. Adapt your communication style to align with U.S. expectations, ensuring clarity and transparency in all interactions. Understanding and respecting cultural differences contribute to building strong, trust-based relationships with third parties.  Comprehensive Contractual Agreements   The fourth pillar highlights the importance of creating comprehensive contractual agrements to improve a Vendor Relationship Management. Clearly define expectations, responsibilities, and performance metrics in written contracts. Engage legal professionals to draft contracts that align with U.S. legal standards, providing a solid foundation for the relationship. Well-documented agreements not only prevent misunderstandings but also serve as essential evidence in case of litigation.  Technological Integration for Efficient Management  In the dynamic U.S. business environment, technology plays a vital role in efficient third-party management. The fifth pillar recommends integrating technological solutions for streamlined processes, such as adopting modern and coherent software specifically tailored for data management and performance tracking. Using compliance monitoring and continuous communication enhances the efficiency and effectiveness of your third-party management strategy.  Continuous Monitoring and Adaptation The sixth pillar emphasizes the need for continuous monitoring and adaptation. The U.S. business landscape is dynamic, and market conditions can change. Regular evaluation of third-party relationship performance, compliance monitoring, and readiness to adapt strategies as needed are essential.  In conclusion, the successful implementation of third-party management in the United States requires a holistic approach that considers regulatory compliance, cultural nuances, and effective communication. By customizing due diligence processes, establishing comprehensive contracts, integrating technology, and maintaining a proactive stance, companies can navigate the complexities of the U.S. market and build lasting, mutually beneficial relationships with third parties.  How can Bernhoeft help?  We are pioneers in Brazil in providing Third-Party Risk Management services. With over 470,000 active third parties, we have all the necessary expertise to implement and disseminate third-party manegement in the United States. Learn more at here. 

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