Multidisciplinary Scientific Journal

Pesquisar nos:
Filter by Categorias
Aeronautical Sciences
Agricultural Engineering
Chemical engineering
Civil Engineering
Computer Engineering
Computer science
Electrical engineering
Environmental Engineering
Mechanical Engineering
Naval Administration
Physical Education
Production engineering
Production engineering
Science of Religion
Social Sciences
Pesquisar por:
Selecionar todos
Anexos / Arquivos

Main Accounting Instruments For Small Business Companies

RC: 6315
48 Readings
Rate this post


GOMES, Henrique Teixeira [1]

FILHO, Sidnei Almeida Moreira [2]

SIQUEIRA, Sirlene [3]

GOMES, Henrique Teixeira; MOREIRA, Sidnei; SIQUEIRA, Sirlene. Main Accounting Instruments for Small Business . Multidisciplinary Scientific Journal Nucleus of Knowledge. Year 1. Vol. 10. PP 292-300 December 2016. ISSN:2448-0959


Before you start an economic activity, it is essential to make clear the goals you want to achieve with this initiative, so through this work we present the future entrepreneurs and managers basic instruments in accounting for a small business, what often happens is the lack of knowledge and research to build your business, so often the closure or bankruptcy of the same , so this work brings an important point for small businesses, providing through the accounting basic instruments like: inventory control, accounts receivable, accounts payable, cash flow and margin of contribution that would be the Basic for a small company and to the knowledge of a future entrepreneur.

Keywords: Small Business, Basic Instruments, Accounting.


What would be an entrepreneur? Entrepreneur the individual who would have the real capacity and skills, skills to create, open and the confidence to manage a business, showing profile of leadership skills, passion for what you will do and have the ease of expression, be creative and persistent, take risks and not give up the first obstacles found among others, thus managing to achieve positive results in your new business.

Not always the entrepreneur will open a company, he can be an entrepreneur in several areas, the entrepreneur is the one who leaves for action rather than remain only having dreams and ideas, many entrepreneurs have the dream of opening their own business, but it is necessary to seek help and make a detailed study. The entrepreneur needs to have a vision open to new information and preparation, to perform a good planning. Owning company and turn it into success requires a lot of time and dedication.

Per the website, PORTAL BRASIL (2012):

Of every 100 micro and small enterprises (Mses) opened in Brazil, 73 remain in business after the first two years of existence. Per the study “survival rate of companies in Brazil”, made by Sebrae, these are the most critical years for a company. The survival rate of 73.1% of micro and small enterprises referred to those who were born in 2006 and are at least two full years in activity, since they opened the doors in 2005 were 71.9% of survival.

Accounting fits as an analysis of the patrimony, that is, as the organization of heritage, where the entrepreneur registers and accounts for all your company data, between assets and liabilities, as well through their reports it is possible to show the current situation of the company, to any decisions.

Accounting is extremely important, both for large and small businesses. Large companies have a larger set of users who use the accounting information, we can cite the example of Public companies, who mostly have their shares traded on exchanges and in dollars, Financial Institutions (banks) among others, companies that need to be in constant dissemination of your accounting information, whether for future investors (public) or even to fiscal control.

So, for small businesses apparently not accounting has as great importance because the number of users is less about big companies, but for small business accounting is essential is uniquely important and above all by means of a well-made accounting manager can manage and control your business.

Accounting for small businesses more assumes a managerial role and management than financial information disclosure to external audiences, not accounting assumes this function too, more for small businesses this is not its focus.

It is through the accounts that the Manager of a small company can measure the effective profit, having access to cash-basis, accrual basis, so being able to understand your rationale and importance, is through the accounting manager of the company can differentiate what is cost and expense and through this differentiation he measures the contribution margin, and so taking inventory control control, accounts receivable, accounts payable, and cash flow.

The lack of information may hinder and delay future entrepreneurs consider – if so important basic knowledge in accounting, through this research bring the main objective of presenting the future entrepreneurs accounting basic instruments, addressing some topics considered of extreme importance to a small trading company, such as: inventory control, accounts receivable, accounts payable control , cash flow, contribution margin, so the entrepreneur will have basic knowledge to manage your business.


Accounting plays a key role in enterprises, with the purpose of showing the assets and liabilities of an entity, thus assisting the management sector in decision-making, with the laws applied by the Government to collect taxes, insurance accounting makes essential regardless of company size.

“The accounting and other other knowledge developed to respond to the concerns of society, so to generate information for its control and decision-making.” (FAVERO, 2011).

And through the accounts that the company will know the value of your assets, liabilities, revenues, expenses, costs and cost-effectiveness and profitability. Responsible for assist in decision-making to gathering information, e.g. invoices, bank statements, statements or financial reports.

For Anthony (2011, p. 36)

Management accounting is the process of production of financial and operating information for employees and managers. The process should be driven by the needs of inside information and should direct their investment and operational decisions.

It is regrettable that very clearly defined objectives and founded by great master’s finish accounting theorists, in practice, and conflict with the reality that accounting is a mere instrument to comply with tax requirements required, especially in small businesses.

The books have several reports and tools that assist in the management, thus providing entrepreneurs are more prepared for the competitive and crowded market today, these reports and tools need to be always up to date and with real data, thus serving to assist managers in decision making.


2.1.1 Inventory control

Much is heard aboutinventory control, but many managers still don’t know exactly how it’s done and what benefits they bring to their businesses, it can generate various benefits within a company among them are:

  • control the material flow within the company;
  • analyze the amount of product (General control and prediction of allowing next purchase);
  • allows Manager to also have a knowledge about your own sale that is know which of them are obsolete and which represent good opportunities.

Is of great importance for the company meets its customers immediately, for a stock requires some responsibilities, the products should never miss so there is no loss of sale, but also there can be no exaggeration, because this can bring prejudice, logistical difficulties and other problems, with the control running you get the balance It is important to also have a safety stock it will serve to cover the unexpected variations in the company.

Marion (2009, p. 118) States:

Control occurs physically (quantity) and monetarily (value). It is necessary to periodically count (inventory) inventory and evaluate him monetarily for cost purposes (measuring profit), control (meet consumption, losses, loss, breakage …) and for decision-making (which product or merchandise is more profitable at the time of sale).

A good inventory control either through software or manual controls, can allow the Manager review reports provided by this control, assisting the Manager directly into your decision-making process and make the company pass to have greater control over their capital which is employed in stock and so know the value must shell out for a spin.

The inventory control helps directly in the areas of sale, purchase and the company’s financial, because assists the areas controlling the quantities of products, demand, length of stay in stock with these updated data these departments can achieve your sales, purchases with greater security while the financier may have a control of your capital and your stock rotating.

Below are examples of inventory control, containing the goods entry, date, amount, cost amount, suppliers, current balance of goods. (Table 1)

Table 1, 2, 3: Examples, input and output reports, cost per unit, Document Numbers, product codes, suppliers and sale.

Table 1 -Nail Product input and output 12 x 12.

Inventory control sheet Code Product Paragraph of Document Product cost per unit Supplier Entry Output Balance
7/1/2016 1 Nail 12 x 12 7736543434345 6.00 Gerdau 100 100
7/6/2016 1 Nail 12 x 12 7736543434345 6.00 Gerdau 18 82
7/9/2016 1 Nail 12 x 12 7736543434345 6.00 Gerdau 44 38

Source: Author

Table 2 – 18 x 24 Nail Product input and output.

Inventory control sheet Code Product Paragraph of Document Product cost per unit Supplier Entry Output Balance
7/1/2016 6 18 x 24 nail 65564654654568 5.50 Gerdau 90 90
7/3/2016 6 18 x 24 nail 65564654654568 5.50 Gerdau 25 65
7/7/2016 6 18 x 24 nail 65564654654568 5.50 Gerdau 15 50

Source: Author

Table 3 – Nail 17×21 Product input and output

Inventory control sheet Code Product Paragraph of Document Product cost per unit Supplier Entry Output Balance
7/1/2016 4 Nail 17×21 54654654564565 5.50 Gerdau 150 150
7/1/2016 4 Nail 17×21 54654654564565 5.50 Gerdau 35 115
7/3/2016 4 Nail 17×21 54654654564565 5.50 Gerdau 27 88

Source: Author

Model of inventory control above about an ” Index ” in which the Manager can view the availability of products in stock, allow the analysis of inventory control, so that when you need to make a request for inventory replacement, also allows knowing the cost of each product etc.

2.1.2 Control of accounts receivable

Is a managerial control essential for financial life d and any company? The assets receivable arising from sales are one of the greatest assets of your company, to stop receiving them, or charge its customers, be unduly on the value, or data, whether in anticipation of a postdated check is very bad for your company.

Regardless of the size of any Brazilian company sale the time limit is a facility that generates more convenience to their customers, e.g., credit card, credit and Bank and control of accounts receivable and a management control tool indispensable to a good financial life of any company besides being responsible for:

  • Avoid delay or default of payment from your customers;
  • Have the exact value of which must receive enabling making money turn;
  • Generate information to cash flow;

She usually stems from a provision of service or sale of any products to be generated a duplicate copy, so the release must be released in one or multiple receivables in its financial account manager so you can always follow and have daily reports of the salaries of those duplicates.

In the table below follows a model of accounts receivable with date of 7/6/2016, and with sales in receivables for 15:30 days of term. (Table 4)

Table 4 – Control of accounts receivable.

Control of accounts receivable Receipt





Maturity Client Paragraph


Value Date Value





1 8/6/2016 Gerdau 132089445 R$ 40.00 8/15/2016 RS 4.00 RS 44.00
2 8/6/2016 Gerdau 458798455 30.00 R$ 8/15/2016 RS 3.00 RS 33.00
3 8/6/2016 Gerdau 897654123 R$ 50.00 8/15/2016 RS 5.00 RS 55.00
4 8/6/2016 Gerdau 653489745 18.00 R$ 8/6/2016 RS 18.00
5 8/6/2016 Gerdau  789456123 R$ 72.00 8/6/2016 RS 72.00
6 7/21/2016 Gerdau 654654879 R$ 45.00 7/21/2016 RS 45.00
7 7/21/2016 Gerdau 654321654 R$ 27.00 7/21/2016 RS 27.00
8 7/21/2016 Gerdau 352654874 R$ 36.00 7/21/2016 RS 36.00
9 7/21/2016 Gerdau 956231264 R$ 45.00 7/10/2016 RS 4.50 RS 41.50
10 7/21/2016 Gerdau 465654654 R$ 27.00 7/10/2016 Rs2 .70 RS 24.30

Source: Author

2.1.3 accounts payable Control

Management process that aims to control to anticipate, generating a forecast, we have obligations during the month or period are represented by purchases of goods, inputs to production, machinery, services, salaries, taxes, rent, loans, among other contributions.

The purchase of a product or service from a vendor, you have just acquired a financial commitment to be here 30 days or 60 days, so on, control of accounts payable also tends to avoid:

  • Prejudice in recurrences in late payment of bills to be paid;
  • In case of financial difficulties, can check which accounts he can renegotiate;
  • Generate information to cash flow.

In the table below is a control model of accounts payable for the purchase of goods on the date 7/6/2016 half and the other half remaining in duplicate to pay for with 15 days of term. (Table 5)

Table 5 – Control of accounts payable.

Accounts payable control Payment





Maturity Client Paragraph


Value Date Value





1 7/21/2016 Gerdau 132089445 120.00 R$ 7/18/2016 RS 2.00 RS 118.00
2 7/21/2016 Gerdau 458798455 120.00 R$ 7/18/2016 RS 2.00 RS 118.00
3 7/21/2016 Gerdau 897654123 120.00 R$ 7/21/2016 RS 120.00
4 7/21/2016 Gerdau 653489745 110.00 R$ 7/21/2016 RS 120.00
5 7/21/2016 Gerdau 789456123 110.00 R$ 7/21/2016 RS 120.00
6 7/21/2016 Gerdau 654654879 110.00 R$ 7/21/2016 RS 120.00
7 7/21/2016 Gerdau 654321654 110.00 R$ 8/1/2016 RS 5.00 RS 125.00
8 7/21/2016 Gerdau 352654874 110.00 R$ 8/1/2016 RS 5.00 RS 125.00
9 7/21/2016 Gerdau 956231264 110.00 R$ 8/1/2016 RS 5.00 RS 125.00
10 7/21/2016 Gerdau 465654654 110.00 R$ 8/1/2016 RS 5.00 RS 125.00

Source: Author

2.1.4 Cash Flow

Cash flow is one of the essential tools to ensure proper management it is based on the control of financial moves, that is, the money that goes in and out of the box allowing you to have important information to directors of the company through knowledge of the variables that make up the company’s financial flow, we can build a scenario of predictability for the finances of the company.

The lack of cash flow and financial planning and cash flow forecasting is among the three reasons that cause failures or business bankruptcy (Marion, 2010).

The main purpose of the cash flow management is to ensure that your company is in financial stability, the financial balance is a scenario where the entrances and exits of money are balanced against the values. The amount is equal to or greater than the outgoing, always considering the deadlines for receipt of the suppliers, the customers and the supplier’s payments, so your case increases in own resources and decreases in third-party resources.

Marion (2009, p. 118) States:

Without a cash flow designed the company doesn’t know in advance when you need a financing (and usually leaves desperate when your box breaks, making the worst operations that exist: overdraft, discount of duplicates …) or when, even if temporarily, spare resources to apply in the financial market (earning interest, reducing the cost of third-party capital loan). Hence the financial failures.

The need for working capital tends to decrease and increase profitability, but to achieve this positive scenario we need to know about the company’s financial process using a good management method and have the support of appropriate tools.

 3. Conclusion

Accounting is an indispensable tool for the entrepreneur, assisting in the management of your business. It is considered basic tools for small business management, inventory control (input and output), control of accounts receivable and payable and cash flow.

The inventory control provides the Manager identify which goods have increased output, which product is missing, which has sufficient quantities and to control the quantities of each product, thus providing a high control of their inputs and outputs, and can avoid wasting, the investment products that have low output and avoid that lack essential products for the company.

Another indispensable tool is the control of accounts receivable and accounts payable, that enables the Manager to a control of their obligations and of its revenue, thus obtaining greater financial controls, avoiding delays to suppliers and being able to predict and control the values that the company has received.

The Manager for greater control should use as a tool for their cash flow management, financial control, the goal of keeping the financial stability that drives the company, i.e. each output and input, to control your box.

With these basic instruments, the Manager will have control of your box, (revenue and expenditure), real stock control, getting information for better planning and aid in decision making.


BRAZIL PORTAL, Available in, Published in 02 of Favier of 2012 6:03 pm/Last modified 28 July 2014 4:53 pm. Accessed on 21 September 2016 the 4:40 pm.

MARION, José Carlos. Basic accounting. 10 ed. São Paulo: Atlas, 2009, p. 118-180.

Martins, Eliseu. Cost accounting. 10 ed, São Paulo: Atlas, 2010, p. 178.

FAVERO, Hamilton Luiz. Accounting: theory and Practice, v. 1, [et al.] 6 ed São Paulo: atlas, 2011.

ATKINSON, Anthony a. management accounting,[et al.] 3 ed São Paulo: atlas, p. 36.

[1] Paradise College of the North – FAPAN

[2] Paradise College of the North – FAPAN

[3] Paradise College of the North – FAPAN

Rate this post

Leave a Reply

Your email address will not be published. Required fields are marked *


Este Artigo ainda não possui registro DOI, sem ele não podemos calcular as Citações!

Search by category…
This ad helps keep Education free
There are no more Articles to display