Understanding Simplified Business Information (HEI) is crucial for companies in Portugal. The HEI is a
legal obligation that can have a significant impact on the financial performance of companies.
Although many companies see the HEI only as a tax obligation, it can be an important tool for
financial and business management. In this article, we’ll explore HEI in more detail, including what it
is, why it’s important, and how it can help companies improve their financial performance.
What is the HEI?
The IES is a legal and tax obligation in Portugal that requires companies to deliver annually a series of
accounting, tax and financial information. Through the HEI, companies must provide detailed
information about their financial activity, such as the balance sheet, income statement, cash flow
statement and other relevant financial information.
How does the HEI work?
The IES is composed of several modules, each corresponding to a specific area of the financial
activity of companies. These modules include the Balance Sheet, Income Statement, Cash Flow
Statement, Inventory, Accounts Receivable and Payable, among others.
To complete the HEI, companies must have their accounting records updated and organized. The
information provided shall be accurate and complete and shall correspond to the accounting records
of the undertaking. It is important that companies have a good organization and financial control to
ensure that the information provided in the IES is accurate and reflects the financial activity of the
company.
How can IES help improve the financial performance of companies?
The HEI can be a decisive tool in the financial performance of companies for several reasons.
First, IES allows companies to evaluate their financial performance and identify areas for improvement. By
analyzing the data provided by IES, companies can identify where they are spending the most money
and where they can reduce costs.
Second, HEIs can help companies make informed decisions about investments and expansion. By
analyzing the financial data provided by IES, companies can determine their financial capacity to
invest in new projects or expand their operations. The IES also provides information about the
company’s liquidity and solvency, which are important for making financial decisions.
Third, the HEI can help companies meet their tax obligations and avoid fines and penalties. By
providing accurate and up-to-date financial information, companies can avoid errors or
discrepancies in their tax returns, which can result in fines or penalties.
Conclusion
In summary, the HEI is not only a legal obligation, but also an important tool for financial and
business management. By providing accurate and up-to-date information on companies financial
activity, IES can help them improve their financial performance, make informed investment and
expansion decisions, and avoid tax penalties and penalties. Therefore, companies should pay
attention to the HEI and use the information it provides to improve their financial and business
management.
