Simple finances, how to simplify financial control?
In a company and/or any business, financial control is essential to ensure the economic result of the activity carried out.
So, how can you easily control your company's finances?
Any process that needs to be controlled always needs a form of tracking, a way that can ensure that nothing is left out of that process. How can we do it? Ensuring that all receipts and payments are made through registered and traceable means. This means pay and receive everything on your Business Account.
Simple processes are often those that are least applied by businesspeople due to their simplicity.
The legislation “helps” in this case to promote financial control procedures for your company.
Legislation requires that in companies, payments of a value equal to or greater than 1000 Euros, or its equivalent in foreign currency, must be made using a payment method that allows the respective recipient to be identified.
When carrying out your activity in an individual name, it is prohibited to pay or receive cash in transactions of any nature involving amounts equal to or greater than 3000 Euros, or its equivalent in foreign currency.
When the payment is made by individual person not resident in Portuguese territory, and if they do not act as entrepreneurs or traders, the limit is 10,000 Euros.
Naturally, for the purposes of calculating the limits referred to above, all payments associated with the sale of goods or provision of services are considered in aggregate, even if they do not exceed that limit if considered in fractions. In other words, if a transaction in a company has a value of 3,000 Euros, it is not the fact that it is paid in instalments of 1,000 Euros that makes it within the established limits.
For any payment of taxes, they cannot be paid in cash in an amount exceeding €500.
On December 29, 2023, the possibility of companies being able to settle taxes in cash was prohibited, regardless of their value, making it mandatory that they, whether from installment schemes or any other charges, must be paid exclusively by means of electronic payment.
These restrictions do not apply to financial entities that receive deposits, provide payment services, issue electronic money or carry out manual exchange operations.
There are also exceptions in payments that arise from court decisions or orders and situations provided for in special law.
Financial control is essential for your business, and the limits imposed by legislation may be debatable, but uncontrolled finance is a management model that must be removed from the reality of our companies!