What does an accounting firm do and how can it help my company? Have you ever asked that question?
Many start-up entrepreneurs still have questions about the services and functions related to their business. These doubts are natural at first, however, it is necessary to be very careful and seek guidance from qualified professionals, so that these doubts cannot lead you to make wrong decisions that may cause some harm in the future.
Accounting, for example, is one of those services that not only can, but that will certainly help a lot in treading the path of stones. For contrary to what many think, accounting is not only used to pay taxes and make the entrepreneur run away from bureaucracy.
There are many other advantages that your company will have when hiring an accounting office, as the accountant will also be responsible for:
- Organize the necessary documentation for the operation of the business;
- Administer company accounts;
- Record the history so that you can review attitudes and set priorities for the future;
- and much more.
In such a competitive world, the accountant can be the ideal partner of that entrepreneur who seeks to better understand the routines of his business.
The accountant can provide information to the entrepreneur about all areas and departments, helping him to improve the assets and the way of running his company.
After all, each company has its own characteristics and needs, and a well-executed project with an accounting office will provide all the conditions for the entrepreneur to better define his position in the market, improving whenever possible the performance of his activities and consequently stimulating the growth of your business.
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Good accounting management can influence the company’s growth
In the case of micro and small companies, it is important to say that according to Sebrae, one of the reasons that leads to closure in the first two years is the lack of preparation in management:
“Entrepreneurs cannot identify prices and competitive advantages, they do not know how to manage cash flow, they do not have inventory control, etc.”
In other words, they neglect the work of accounting – they do the minimum in terms of legal and tax obligations, failing to seek guidance in relation to management accounting, which is the information analyzed for decision making.
Many start-up entrepreneurs give up accounting services to cut costs, as the costs of hiring an accounting firm may seem a little high for certain start-ups.
However, this attitude can generate many future upsets, since poor management of cash flow and working capital – which are failures that companies often commit – can lead to their closure.
This is because it is with the cash flow that projections for future periods are made, with the inflows and outflows of the company’s financial resources based on existing information. As a result, it is allowed to see how the cash balance will be in a given estimated period.
Working capital is used to finance the company’s operations, whether related to the payment of expenses, suppliers, raw materials, employees, customer financing, among others. As the name implies, it is related to the investments or accounts that move the company.