FINANCIAL AND ACCOUNTING MANAGEMENT AS A DIFFERENTIATOR FOR BUSINESS SURVIVAL

Abstract

This study investigates how financial management and advisory accounting serve as tools to mitigate risks and ensure the economic sustainability of micro and small enterprises (MSEs) in Brazil. The relevance of this topic lies in the contradiction between the segment's significant economic presence and the high rates of early business failure linked to internal control deficiencies and empirical decision-making. The study employs an explanatory methodology based on a qualitative literature review of books, scientific articles, and industry technical reports. The results indicate that MSE vulnerability stems not from a lack of theoretical knowledge regarding management tools, but rather from the absence of consistent operational routines, insufficient cash planning, and the persistent commingling of personal and business finances. It is concluded that transitioning from traditional accounting to an advisory model—combined with rigorous monitoring of cash flow and solvency and liquidity indicators—forms the fundamental basis for crisis prevention and business longevity in the domestic market.