Going in business?

For those who wish to start a new business, undertaking, or who are already managing a small business without proper guidance, such task can be difficult, lonely and challenging.

Most medium and large-sized companies were also a small business in the past. However, they have prospered, grown into successful companies thanks to the competence and determination of their managers. To have an idea of the importance and the weight of small business in Brazil, refer to the chart below for the latest survey figures:

How much small business represent in the Brazilian scenario

The importance of small businesses in this country is sadly contrasted by their rather high mortality rates. A recent study conducted by “SEBRAE nacional” reveals alarming figures that are shown in the table below

Small business mortality rates in Brazil

The main reasons for small business failure and their high mortality rates are closely related to the lack of an enterprising spirit and management shortcomings that arise as a result of the fact that 45% of small business managers do not seek expert consultancy to manage their business. However, the same study reveals that about 40% of small business owners who are interested in getting advice to do business seek help from their own accountants, being clearly evident that a vast majority of small business owners regard their accountants as their source number one of managerial advice. To such business owners, the accountant is the first professional expert a company hires and shall be last person to be dismissed if that company has to close down operations. Next, a summary of a study in per cent values.

The most important source of expert advice from the standpoint of small businesses

Thoroughly aware of such task, Datamétodo is highly qualified to provide advice and support to clients who are just going in business or are already managing a small business, but need closer assistance. Datamétodo relies on an in depth knowledge and experience to provide a full spectrum of advice and support to your business, as follows:

• Guidance and execution to submit the articles of association of amendments of your company to relevant government agencies;
• Advice on choosing the most advantageous tax regime for your company through solid based planning;
• Support to ascertain your profit margin, break-even point, business viability; pricing; and development of a business budget;
• Assessment of the tax burden involved in the business, as well as social and labor charges on payroll, director’s compensation and independent workers;
• Recommendation of internal systems and controls to be implemented in the company;
• Avoidance of labor and hidden tax liabilities;
• Important warning to preserve the business company and avoid corporate litigation;
• Providing the required documents to take part in government and/or private biddings;
• Preparation of reports, information and documents required to apply for funding from financial institutions;
• Providing information on acid test ratio, vertical and horizontal assessments, IBTDA and other financial and accounting indicators.

Therefore, if you have an innovating idea, wish to transform a hobby into a business, intend to acquire or form an association or go into a franchised activity, you will find that Datamétodo is the right partner to cater to your needs and allow you to concentrate your efforts in your business activities in an untroubled and safe manner.

The importance of accounting in managing a company

To us, Datamétodo’s people, the task of an accounting organization should go beyond the fulfillment of tax accessory, social security and labor obligations, and that includes calculation and issue of tax and social charge forms.

Datamétodo keeps an observant eye on the accounting bookkeeping of its clients, regardless of the tax regime they have chosen, with the purpose of gathering important information that managers should take into account when conducting their business affairs. According to the Brazilian Civil Code, Tax, Social Security, and Bankruptcy law, having an accounting bookkeeping is a compulsory obligation, except for Small Individual Entrepreneurs. The Federal Accounting Council - CFC has legitimized and standardized that obligation. Experience has shown that Financial Statements are the main sources of information for an entrepreneur to manage his or her business.

That statement was ratified by the late and former vice-president of Brazil, José Alencar, who, in a GNT talk show interview anchored by Marília Gabriela, made the following remarks: "The Balance Sheet is the main component in a company’s business administration. Through balance sheet accounting, a manager gathers data to conduct his business affairs".

The links and studies below also confirm the importance of proper accounting consultancy.
See:

• Why an accountant makes a difference in your business Source: "Empreendedores". Blog of Caixa Econômica
• Accounting as a management tool in the small business financial management Companies: Need and Applicability Source: SEBRAE Library.
• Conditioning factors and survival and mortality rates of small businesses in Brazil (2003-2005). Source: "Estudos e Pesquisas SEBRAE Nacional".