Financial Education - Ordinary income and some realities in small and medium enterprises

The most important items for a for-profit company are ordinary income. However, many small and medium-sized businesses do not have established standards, policies, and procedures for accounting for their revenue.

As these companies do not have standards, they merit a constant implementation of techniques on the accounting management of income obtained through their ordinary activities; represented for these a need to have information on their operations; to facilitate management decision making.

And even more so in situations such as the current ones, in which the constant fluctuations in the inflation rate, the exchange rate parity and the indexation processes make it difficult to continue business operations regularly.

Based on the foregoing, accounting for ordinary income in any type of organization is a highly relevant process for management, because it allows planning and controlling its commercial, economic and, therefore, financial activities.

Given these statements, this post was intended to expose these considerations and realities in accounting for ordinary income and its impact on the economic stability of small and medium-sized enterprises.