why cash management has become a matter of survival for small and medium-sized companies

The new fiscal rules arrive at the same time as the double-digit Selic rate and the volatility of the dollar require entrepreneurs to take a more strategic look at cash flow, debt and hedging opportunities, at the risk of losing competitiveness in an increasingly challenging market.

The recent changes brought about by the Brazilian tax reform are usually debated as topics that affect large companies. But the truth is that the new tax architecture imposes important challenges precisely on small and medium-sized entrepreneurs.

And, according to Grupo Studio’s specialist and tax consultant, Maria Eduarda Pavan, the first point of attention is the taxation of individual income. Law 15,270 of 2025 provides for an additional income tax for anyone earning more than R$50,000 per month. This calculation considers practically all of the taxpayer’s available income, including income and amounts that many professionals receive through their own CNPJs, in the form of distribution of profits and dividends.

This means that the topic does not just concern top executives. Doctors, lawyers, engineers and other independent professionals who structured their activities through companies, often covered by Complementary Law 123 of 2006, which established Simples Nacional, may face an additional tax burden when they transfer these resources to individuals.

Another major challenge cited by the specialist is adapting to the new Brazilian dual VAT model, formed by IBS and CBS. The logic changes significantly: calculation of the tax outside the price, non-full cumulative effect and incidence at the destination become the bases of the new system.

For large companies, this transition tends to be absorbed with investments in technology, sophisticated tax systems and specialized consultancies. For small and medium-sized entrepreneurs, the reality must be different. Many will have to deal with a more technically and operationally demanding tax structure without the same capacity to invest in tax governance.

In this context, a relevant competitive dilemma still arises for those who are in Simples Nacional. Remaining in the simplified regime may mean not taking advantage of IBS and CBS credits and passing on too few credits, which reduces competitiveness in long chains and B2B operations. On the other hand, opting for the so-called hybrid model, collecting IBS and CBS under the general regime, increases operational complexity and can increase administrative costs, although in some cases it can be decisive in maintaining space in the market.

We clearly see that the reform sought to simplify the system in the long term, however, in the short and medium term, it requires something that many small business owners have not yet had time to build: tax planning, financial organization and strategic decisions on how to operate within the new model.

Therefore, the best path now is to anticipate the analysis. Review the way in which profits are withdrawn, assess whether Simples will continue to be the best option, understand the impact of IBS and CBS credits on the customer and supplier chain and invest, albeit gradually, in fiscal and accounting organization.

At the same time that the tax reform redraws the map of tax obligations, businesspeople are dealing with another decisive component: a scenario of basic interest rates at double-digit levels throughout the year. A high Selic increases the cost of raising funds, puts pressure on debt service and limits the room for errors in working capital management. In other words, it is no longer enough to “close the account” at the end of the month: you need to know how much each dollar that comes in and each dollar that leaves the cash register costs.

For many small and medium-sized companies, the line that separates a healthy growth cycle from suffocating debt is precisely the quality of cash management. In a high interest rate environment, taking out credit in a disorganized manner can mean compromising future margins for several years. On the other hand, having a surplus of cash sitting in a current account is giving up significant profitability in a double-digit Selic scenario, something that, in practice, can finance a competitor that is being more efficient in the application of its resources.

This context requires a more professional look at the projected cash flow, the management of receipt and payment deadlines, the stock level and the customer credit policy.

On the external side, market volatility adds an extra layer of complexity and opportunity. The fluctuation of the dollar affects the costs of inputs, equipment, indexed contracts and, in many cases, even the demand of customers exposed to foreign trade. Sudden exchange rate movements can erode margins almost instantly. However, for the entrepreneur who looks at risk in a structured way, this same volatility opens windows to protect results and even capture value.

Tools such as exchange rate locks, forward contracts and other hedging solutions are no longer exclusive instruments for large corporations. They can – and should – also be considered by smaller companies that import, export or have any type of relevant exposure to the dollar. The logic is simple and deeply strategic: instead of trying to “fix the exchange rate” or bet on the direction of the dollar, the objective becomes to provide predictability to cash flow and profit margin, reducing unpleasant surprises and allowing management to focus on the core of the business.

In an environment where tax reform changes incentives, high interest rates redefine the cost of time and volatile exchange rates change prices quickly, businesspeople who do not follow these movements carefully end up managing only the past – looking at bank statements and taxes already paid – and not the future. The challenge now is to build a culture in which taxes, cash, credit, interest and exchange rates are discussed in an integrated way, with data support, specialized advice and minimal planning routines.

At the end of the day, behind acronyms like IBS, CBS, Selic and hedge contracts, there are people: entrepreneurs who take risks, create jobs, form teams and upload the impacts of each decision to their CPF and CNPJ. The new tax and financial era does not ask for perfect heroes, it asks for leaders willing to learn, to ask for help when necessary and to look at the numbers with the same seriousness as they look at their products and customers. Anyone who manages to combine this technical outlook with a leading stance will have more than a chance to “break through”, they will be able to grow more confidently and transform their business.