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5 causes of financial crises in companies


For companies in Mexico, the outlook does not look encouraging. And it is that studies show that for new entrepreneurs, there are several barriers that limit them to achieve the goal of consolidating.

Data from the National Institute of Statistics and Geography, INEGI, a company that has 0-2 and 3-5 employed people has mortality probabilities of 0.38 and 0.32 respectively.

5 causes of financial crises in companies

1. Do not separate personal finances with those of the company

Many entrepreneurs don’t have a clear boundary between their personal finances and their company’s finances. The first mistake is not to raise a fixed salary from the pleneation of the company’s finances.

Having a fixed salary for each of the collaborators helps the entrepreneur not to decapitalize and to be clear about the expenses that are in the business. If you want to reinvest it will be the decision of the entrepreneur, but you should not overlook the importance of a clear payroll from the beginning.

Not separating finances can also create debt problems, since entrepreneurs begin to pay with personal resources, in the end the entrepreneur puts his economy and that of his family at risk.

Using personal credit cards to make company expenses can be risky. It is advisable to understand how to use an exclusive credit card for the company and that all expenses are made from one place and thus you will have better control of all expenses and cut-off dates to avoid high interest.

2. Not keeping good accounts

Pay Treasury? Although it may sound simple, paying taxes as a natural or legal person can be a process that can be complicated.

Having good accounting, advising and researching constantly can help companies avoid falling into financial crises and grow exponentially.

It is important that as an entrepreneur you look for information and understand 100% the management of accounting.

Some of the taxes that should be known are:

  • VAT or Value Added Tax
  • I.S.R. or Income Tax
  • I.E.P.S Special Tax on Production and Services
  • I.D.E. Tax on Cash Deposits
  • I.E.T.U. Single Rate Business Tax

3. Exceeding unnecessary expenses

Have you thought about how much rent you pay? How much do you spend on your employees’ phone plans? It is a serious mistake in companies is not to have a clear control of expenses. Optimizing resources depends on two things: company decisions and employee culture.

The first is 100% on the side of the decisions of the partners or owners of the company, it must be evaluated in what can be cut costs without affecting the payroll. Establish priorities and make the best use of resources. Luxuries within a company are not necessarily the best option when you want to consolidate a company.

On the other hand, generating culture within the business can be based on actions as basic as turning off lights or computers when they are not being used, not using the company’s phone for personal reasons, this type of actions although they seem insignificant can represent a great expense in the long run.

4. Very high goals

Depending on the age of the company, sometimes the objectives of the company tend to far exceed reality. The key is not only to rely on the company’s revenue but also to make a macro and microeconomic analysis that allows you to have a clear vision and establish achievable objectives.

Sometimes the partners or owners of the company want to see green numbers in the first months or want to increase their production without knowing if the company is qualified for that. Having your feet on the ground helps the company grow and not stagnate.

In addition, it is not only about knowing what numbers we want to reach but how we want to reach them.

5. Lack of market analysis

Not knowing the profile of its customers, market trends, the political and social situation, the economic situation can have serious consequences and generate that the company is in crisis due to lack of prevention and vision.

It is important that companies understand what their role is in the market and have an open and clear picture to make the right decisions at the right time.

These are some key points that can lead a company to bankruptcy or consolidate in a short time. Financial crises in companies can be prevented if a correct management of resources is made and the right decisions are made. Your opinion is important.

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