When we create a company generally one characteristic it has at the beginning is that we cannot hire many professionals, first of all because it is not justified by the amount of work but also because we don’t have the financial resources to do it. However not being aware of the laws doesn’t exempt us of enforcing them, even if we don’t have a lawyer in our firm. This is the reason why I will talk in this post and on my next post about two subjects every CEO of a SME must understand, so he will not have any legal problem in the future.
But not knowing of accounting is not only a problem because of surcharges. It might turn in a legal problem if we don’t report or don’t pay our economic obligations in the way they must be done. Many times large fines are generated when we evade our taxes and in some places it is paid with jail. It can also happen that we pay taxes we shouldn’t be paying.
On this point I recommend more than an accounting course, because it is more a legal subject that an accounting subject. We have two options here. The first is finding a system in which we can update easily and permanently on legal subjects. One way is with the Internet and visiting the pages of the entities that regulate the subject in each of our operation countries’. However this option might have some shortcomings, this is why I think it is better to hire a legal advice. This service differs with the service of our accountant, because generally he doesn’t knows some legal subjects. I think both services are necessary and complementary, and if we outsource them will not have to hire a lawyer and an accountant on our firm.
Remember that on my next post I will address other subject that I think it is very important for SME’s CEOs to understand so we don’t have any legal problem in the future. Wait for it next week!
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