It is a very common myth to believe that accounting is only for large companies. It is a very common mistake of small businessmen to consider that with their cash flow, sales and purchases they have resolved the financial activity of the company. However, the importance of accounting in SMEs, small and medium-sized companies is very radical.
Experts point to the importance of accounting in SMEs as a preponderant factor in the development of the company. Without order there is no growth and the only indicator of how the company is doing, what its performance is and what is needed for it to continue its rise are its financial statements, the product of accounting.
The importance of accounting in SMEs from a tax perspective
This is one of the main reasons that demonstrate the importance of accounting in SMEs, tax solvency. By having the books and the respective tax deductions up to date, a tax return can be made fairly adjusted. With this, you can avoid possible penalties for non-payment.
Another question is also very frequent among small and medium-sized businesses, and it is precisely that, the size. When am I a small company and when am I medium? According to this stratum, obligations are differentiated not only from the tax point of view, but also labor and fiscal.
Incentives for SMEs
One of the main objectives of the tax administrations is to increase their collection base. In this sense, they seek to attract new companies and completely eliminate informality, so that the State has more income. However, this is accompanied by incentives for these companies to become formalized.
In this also lies the importance of accounting in SMEs, since financial companies will grant credit, but they will want to do so to solid and well-run companies. For this reason, one of the first requirements that a bank asks for before granting loans is, precisely, the balance sheet and financial statement.
Protection against the unexpected
Being able to protect yourself against the unexpected is another element that demonstrates the importance of accounting in SMEs. Only with this tool will you have a perfect visual of how your company is doing, what its liabilities and assets are.
Investment, the mainstay of growth
Another sign of the importance of accounting in SMEs is the contribution to the investment vision. Knowing the real financial status of the company, you can think about investing, expanding its physical plant and its productive capacity, among other elements. If you have a small or medium-sized business, do not hesitate, hire an accounting firm and bring everything up to date.
The confidence of having a professional team
When you decide to hire an accounting firm, consider contacting us. At PCS Global in Australia we have a professional team that will be at the service of your company, updating your accounting and taking away the headache of knowing if you have everything in order.
