2024-12-04 15:19:00
The majority of businesses opened in Brazil cannot survive for more than three years: 51.15% of them close their doors in this period of time. This is what a survey carried out by BigDataCorp (a company specialized in capturing, structuring, storing and distributing data) and reported by CNN Brasil.
Among the various factors that can lead a business to close is the lack of planning and correct analysis of the numbers, as Wallisson Deziderio explains. An accountant by training, he is CEO of Billion Contabilidade, a company that assists business owners in matters such as accounting, tax and personnel departments.
“The fact that many companies are at risk of closing their activities due to a lack of analysis of accounting and financial statements is a point that is often neglected, which can lead to serious consequences for the sustainability and survival of the business”, analyzes Deziderio.
He highlights the need to analyze the balance sheet, the income statement for the year (DRE, which show the performance of a business in a specific period) and other reports to identify possible financial, operational and management risks. Based on this, the company is able to make decisions considering accurate information and organize itself better.
Deziderio also mentions other indicators that should not be forgotten by anyone who has their own business. They are: current liquidity (measures the company’s ability to pay its short-term obligations), dry liquidity (similar to current liquidity, but excludes inventories) and debt ratio (measures the company’s degree of dependence on external financing to finance its operations)
“Without these indicators, managers are unable to make well-informed financial decisions, which can result in insolvency, cash flow difficulties and increased dependence on debt. Ultimately, the absence of data can significantly contribute to the closure of the business due to poor financial management”, warns Deziderio.
The term “insolvency” that the expert referred to is used to describe when the business can no longer meet its financial obligations. This is the case, for example, of a company that incurs debts so large that paying them becomes unfeasible.
“The combination of lack of financial planning, inadequate management, lack of adaptation to the market, undercapitalization, problems with cash flow, intense competition and lack of management qualifications are some of the most frequent causes of failure”, assesses the CEO of Billion Contabilidade .
For Deziderio, it is essential that entrepreneurs seek knowledge, carry out solid planning, regularly analyze financial indicators and be prepared to deal with market challenges. “This minimizes the risks of bankruptcy and increases the chances of business continuity”, he summarizes.
1733368495
#Lack #accounting #analysis #threatens #company #survival
What advice does Wallisson Deziderio give to budding entrepreneurs navigating the Brazilian business environment?
## Interview with Wallisson Deziderio on Business Survival in Brazil
**Host:** Welcome back to the show, today we’re diving into some tough statistics about businesses in Brazil. A recent survey [[[2]](https://www.cnnbrasil.com.br/economia/negocios/brasil-tem-saldo-positivo-na-abertura-de-empresas-mas-89-nao-passam-de-5-anos-diz-pesquisa/) highlighted that over half of new businesses don’t survive past three years. This is a concerning trend, and we’re here with Wallisson Deziderio, CEO of Billion Contabilidade, to understand what might be driving this and how businesses can improve their odds of success.
Welcome, Wallisson.
**Deziderio:** Thank You for having me.
**Host:** Let’s jump right into it. This survival rate is alarming. What are some key factors contributing to this high failure rate?
**Deziderio:** A major culprit I see is a lack of planning and a poor grasp of financial analysis. Many entrepreneurs neglect to properly analyze their accounting and financial data, which can have serious consequences for their business’s sustainability.
**Host:** You mention specifically “accounting and financial statements.” What kind of reports should business owners be looking at closely?
**Deziderio:** Crucial reports include the balance sheet, the annual income statement (DRE), and other key performance indicators. Analyzing these allows businesses to identify potential financial, operational, and management risks.
**Host:** So by understanding these numbers, businesses can make more informed decisions?
**Deziderio:** Absolutely. Having access to accurate data empowers them to make strategic choices that improve their chances of success.
**Host:** What other advice would you give to budding entrepreneurs looking to navigate this challenging environment?
**Deziderio:** Keep a close eye on indicators like current liquidity, which measures a company’s ability to meet short-term obligations. Always prioritize sound financial management practices, and don’t hesitate to seek professional advice from experts like accountants or consultants.
**Host:** Wise words indeed. Thank you for shedding light on this important issue, Wallisson.
**Deziderio:** It was my pleasure.
**Host:** And to our viewers, remember, knowledge is power when it comes to building a successful business.
