Outsourced Accounting in Brazil: Services, Costs and Responsibilities

Most foreign-owned subsidiaries in Brazil do not build an in-house accounting department, at least not at first. They outsource bookkeeping, tax compliance and often payroll to a local accounting firm, and keep a finance contact, or nobody at all, inside the Brazilian entity. The model works well when both sides know exactly what is outsourced, what stays with the company and how responsibility is shared. This guide explains what outsourced accounting covers in Brazil, the rules that govern the relationship and how to set it up so that headquarters is not surprised.

What is usually outsourced

The first three are the core of most contracts. Group reporting and finance operations are where providers differ most, and where foreign groups most often find gaps after signing (see outsourced finance operations in Brazil).

The rules of the relationship

Only registered professionals

Accounting in Brazil is a regulated profession. Only accountants with a degree, an approved proficiency exam and registration with the Regional Accounting Council (CRC) may practice, and accounting firms must register with the CRC in each state where they operate, with registered accountants as technical managers (Decree-Law 9,295/1946 and CFC Resolution 1,555/2018). The Federal Accounting Council (CFC) offers a public lookup to check a registration.

A written contract is mandatory

Under CFC Resolution 1,590/2020, the accountant must provide a written proposal and, once accepted, sign a written contract that states at least: the services in detail, what the client itself is responsible for, duration, fees and their adjustment, each party’s responsibilities, the annual management representation letter, awareness of the anti-money laundering law, a termination clause with a notice period, and the jurisdiction. The contract defines the extent of the accountant’s technical responsibility, so its scope matters.

What remains with the company

Outsourcing does not move the company’s tax obligations to the provider. Under the National Tax Code, liability for tax infringements does not depend on intent (article 136), so penalties for a late or wrong filing fall on the company. The Civil Code makes accounting entries by the company’s agent as binding as if made by the company, and gives the company recourse against the agent for negligent acts (articles 1,177 and 1,178). In practice, the company keeps responsibility for:

• sending complete and timely information: invoices, contracts, payroll changes, bank statements;
• approving payments and tax positions;
• signing the annual management representation letter;
• keeping digital certificates and system access in order.

Anti-money laundering duties

Accountants must report suspicious operations and large cash transactions to the financial intelligence unit (COAF), keep records for five years and keep these communications confidential (CFC Resolution 1,721/2024). Expect know-your-customer questions at onboarding.

Access and systems

The provider usually works through the Federal Revenue’s digital services under an electronic power of attorney granted by the company, which defines which services the representative can access. Groups should decide who holds the company’s digital certificates, which systems the provider uses and who owns the data, and grant access service by service rather than “everything”.

How to structure the engagement

1. Define the scope service by service, including group reporting deliverables, formats and deadlines.
2. Agree a monthly calendar: when the company sends information, when the close is delivered, when taxes are paid (see monthly tax compliance in Brazil).
3. Set service levels and a contact person in English, if headquarters needs it.
4. Write the exit terms: notice period, handover of books and files, and who files obligations for the last months.
5. Review quarterly: reconciliations, open notices, tax certificates and the quality of the reporting package.

Costs: what drives the fee

Fees depend mainly on the volume of transactions and invoices, the number of employees, the tax regime and the number of state and municipal registrations, the group reporting requirements and the level of support in English. Comparing providers only by the monthly fee hides the real difference, which is in scope and quality. Ask each provider to price the same detailed scope.

How Solidy can help

Solidy already serves subsidiaries of multinational companies in Brazil. Our accounting, tax compliance and payroll teams work under a written scope that includes the group reporting package, on a monthly calendar agreed with headquarters. See our accounting service or read financial management for foreign-owned companies in Brazil.