How to Choose an Accounting Firm in Brazil for Your Subsidiary

Choosing an accounting firm is one of the first decisions a foreign group makes in Brazil, and one of the hardest to evaluate from abroad. Almost every firm will say it handles taxes and payroll. The differences that matter to headquarters, such as the quality of the monthly close, reporting in the group’s format, communication in English and the handling of tax notices, only show up months later. This guide gives a practical way to compare providers before signing.

Start with the basics: registration and contract

• CRC registration: accounting firms must be registered with the Regional Accounting Council in each state where they operate, with registered accountants as technical managers. Check the firm and the accountant who will sign your books in the Federal Accounting Council’s public lookup.
• Written proposal and contract: Brazilian rules require a written proposal followed by a contract that details the services, what the client must do, fees and their adjustment, responsibilities and a termination clause with notice (CFC Resolution 1,590/2020). A provider that resists putting the scope in writing is a warning sign.

Ten questions to ask every candidate

1. Who will work on our account? Names, seniority and who signs the books. Ask how often the team changes.
2. Do you serve other subsidiaries of foreign groups? Ask for the type of companies, not names, and how their reporting is organized.
3. What does the monthly calendar look like? When must we send information, when do we receive the close, and when are taxes paid?
4. Can you deliver our group package? Mapping to the group chart of accounts, IFRS or US GAAP adjustments, intercompany reconciliations (see monthly financial reporting to headquarters).
5. How do you handle tax notices and certificates? Who monitors the federal, state and municipal situation, and how quickly are we told?
6. Which communication language and channels? Can someone with technical knowledge answer headquarters in English?
7. Which systems do you use, and who owns the data? Can we access the ledger, and what happens to the files if we leave?
8. What is excluded? Tax advisory, transfer pricing documentation, litigation, Central Bank filings and payroll often fall outside the standard fee.
9. How are fees adjusted? By index, by volume of transactions or employees, or by new services.
10. What are the exit terms? Notice period, handover of books and electronic files, and who files the last obligations.

How to compare proposals

Price matters, but a lower monthly fee for a narrower scope often ends up more expensive once the missing services are added or problems need fixing.

Large international firms or local specialist firms

Foreign groups often consider a large international network and a local firm specialized in subsidiaries of foreign groups. Large networks offer brand recognition and integration with the group’s global auditors or advisers, usually at a higher cost. Local specialist firms tend to offer closer day-to-day contact and flexibility, with varying depth. Neither is right for every company: the deciding factors are the subsidiary’s size and complexity, the reporting the group needs, and whether the people doing the work are experienced and accessible.

Red flags

• No written scope, or a scope limited to “accounting and taxes”.
• No clear answer about who signs the books and the digital filings.
• Requests for full access to all of the company’s digital services when specific services are enough.
• No routine for tax clearance certificates and notices (see tax clearance certificates in Brazil).
• Reluctance to discuss exit terms.

How Solidy can help

Solidy already serves subsidiaries of multinational companies in Brazil. Our proposals follow the Brazilian rules: a written proposal and a contract with the detailed scope, fees and termination terms, so these questions can be answered before you sign. See our accounting service or read outsourced accounting in Brazil.