ACCOUNTING IN SMALL BUSINESSES: A STRATEGIC APPROACH TO FINANCIAL MANAGEMENT AND DECISION MAKING

Abstract

This study aimed to understand the importance of management accounting as a strategic tool for small businesses in Ceará. This study is justified by the strategic importance of accounting for small businesses, which play a vital role in the economy, contributing significantly to job creation and economic growth. However, many face unique challenges related to financial management and decision making, often due to a lack of resources and accounting expertise. This is an exploratory descriptive research with a quantitative approach. The research sample consisted of 10 companies, including 7 commercial companies and 3 service providers located in Iguatú- CE. Data collection included the online distribution of questionnaires through social networks such as WhatsApp, email and Instagram. This questionnaire was constructed using Google Forms. The results of this investigation offer solid evidence that the correct use of accounting information is directly related to the financial performance of SMEs. The quantitative analysis revealed that the adoption of appropriate accounting practices contributes to increased profitability, minimized waste and improved liquidity of the companies studied. These findings demonstrate the relevance of accounting as a strategic tool for financial decision-making.