Introduction
The main objective of this text is to present financial management as one of the main causes that cause instability in companies caused by poor planning and combined with inefficiency in business management and inadequate work processes. It should be borne in mind that the administrator is currently asking an infinity of questions related to the administration of resources and the best way to develop strategies based on the reduction of their costs. In relation to this, it must be taken into account in which activities of the company are consuming the greatest amount of resources, in order to exercise due control and management that produces an efficient and profitable operation in the organization.
Starting from the above, it is important to highlight that the company in the conditions imposed by the competition, must take into account which are the main areas that have an important responsibility in the management of its economic resources, in order to control and monitor that they are being meeting the objectives that allow the company financial stability and the ability to meet its obligations without having to resort to external sources of financing. In this paper it is proposed to analyze some activities that due to their relationship with the use and management of resources have a great impact on the liquidity and finances of the company, such as; merchandise purchases, sales, logistics management and portfolio management.
In addition to identifying in which key areas of the company its resources are leaking or proper management is not being carried out, every company must implement strategies, objectives and controls that help solve its problems that generally always end up affecting its financial statements, this in order to develop competitiveness based on internal factors of the organization and find the solution to clean up its financial statements and achieve the desired solidity.
Financial management and business dynamics
The main purpose of this writing is to expose the relationship that the financial factor has with the success or failure of any organization and some of the practices that cause projects great economic difficulties, this being one of the main causes of the closure of companies. In Colombia, it could be said that most of the problems that an organization may have in the end produce economic complications and this is the main reason that bankruptcy can cause, this is why everyone recognizes its value but few people really know how to manage in the practice and give economic management to the money and assets of the organization.
Every entrepreneur or entrepreneur always questions what are the causes of the organization's financial collapse and what are the possible solutions? and it is a question that has infinite answers, of which I will highlight in this dissertation some of the most used sources of financing or options, the bad operation and planning of logistics and the great impact of bad business practices that translate into most of the time in serious liquidity or solvency problems for the company to fulfill its obligations to third parties.
It is important to note that in any company, the proper development of the administrative process is of vital importance for the achievement of the objectives and goals that it has and therefore the basis for the fulfillment of the vision and the development of the missionary strategy, every good project should start from a good planning and evaluation taking into account the serious economic problems that can be generated for the business by committing to external financing sources in which the interest is higher than the real profit for the year, in addition to the high levels of inflation that many times they are not taken into account by entrepreneurs.
According to the portfolio, the credit outlook does not look very good for 2014. The bankers themselves warn of course because of the higher capital requirements of entities (decree 1721 of 2012) and other measures that seek to give it more solidity to banks, the availability of liquidity of entities is being limited, making the business less profitable and making its operating structure more expensive. ("Bankers warn that credit will be more expensive in 2014", 2013).
It can be deduced from the foregoing that in 2014 the situation presented by banks could cause an increase in interest rates and although in Colombia there are a wide variety of external financing alternatives of which we can highlight the fund to undertake, the issue of shares, bonds, leasing and factoring, among others, these financing sources are a good alternative to solve liquidity problems in the organization or project in the short and medium term, however, these alternatives must be examined very carefully and choose the best option for the company, so as not to generate obligations for the company that are impossible to pay, taking into account that the analysis guarantees viability and profitability,In relation to the above, it should be noted that in some cases, concessions are also used by suppliers, making this for the company the best tool to leverage commercial activity and obtain good returns without compromising the company's resources too much.
It is important to note that the economy, profitability and growth management are also concentrated in another component of the administrative process, this element as important as Daniel Ortiz defines it well using the concepts of Lyndall Urwick is “the direction” (Ortiz, 2011) from which we can highlight the importance of “integration” (Ortiz, 2011) of human talent and resources in order to make the best decisions clearly defining what is going to be done and what assets are necessary to achieving the best results efficiently. The administration of all these resources, whether financial, material, technical or human, should be the starting point for any company,that in all its stages it must adopt the best practices that allow it to compete and overcome the conditions imposed by globalization and competition. This phase of the aforementioned administrative process constitutes the fundamental basis for decision-making and the solution of problems that may affect any organization internally, but here it is necessary for the company to evaluate the behavior of its resources to have the possibility of comparing itself with a benchmark or objective and, based on this, identify your current scenario, forecast your future situation if you continue with the same trend, and plan strategies that positively affect all levels of the company.This phase of the aforementioned administrative process constitutes the fundamental basis for decision-making and the solution of problems that can affect any organization internally, but here it is necessary for the company to evaluate the behavior of its resources to have the possibility of comparing itself with a reference point or objective and, based on this, identify your current scenario, forecast your future situation if you continue with the same trend, and plan strategies that positively affect all levels of the company.This phase of the aforementioned administrative process constitutes the fundamental basis for decision-making and the solution of problems that can affect any organization internally, but here it is necessary for the company to evaluate the behavior of its resources to have the possibility of comparing itself with a reference point or objective and, based on this, identify your current scenario, forecast your future situation if you continue with the same trend, and plan strategies that positively affect all levels of the company.But here it is necessary for the company to evaluate the behavior of its resources in order to have the possibility of comparing itself with a reference point or objective and, based on this, identify its current scenario, forecast its future situation if it continues with the same trend and plan strategies that positively affect all levels of the company.But here it is necessary for the company to evaluate the behavior of its resources to have the possibility of comparing itself with a reference point or objective and, based on this, identify its current scenario, forecast its future situation if it continues with the same trend, and plan strategies that positively affect all levels of the company.
To develop the strategies that lead the company to better situations, there must be commitment from each individual within the organization, developing tactics that help the operational level to respond appropriately to each specific situation, designing medium-term strategies for middle managers and implementing long-term plans at the institutional level, but to carry out the aforementioned, giving the importance that good resource management deserves, it must be recognized that accounting and financial knowledge is essential for any microentrepreneur and / or administrator who, by investing their capital, decides implement a business project since poor administration and financial ignorance makes good decision-making impossible and is one of the main causes of the closure of companies in Colombia.
It was concluded that approximately 50% of companies fail due to problems related to sales, 45% do so due to financial situations, and only 5% for administrative reasons. It was also evident that when market problems are not solved in a timely manner, they become financial complications that are very difficult to solve (Herrera, 2011).
A key point that considerably affects the financial part of organizations and that every entrepreneur and / or administrator must know how to manage correctly is logistics, in this area, as well as there is a considerable cash outflow, there should also be an appropriately planned flow of information, as well as materials or merchandise, a large part of the economic problems originated in the poor planning of purchases and in the cost that the maintenance of an excessive stock implies for the company, it can be thought that the Colombian businessman for pursuing a apparent benefit without due analysis, neglects the management of inventories and does not plan their purchases adequately, bringing with this decision a great liquidity problem to meet their obligations.
Another important point that is directly related to the profitability of the company is the commercial activities, the income of the company depends on these, thus affecting the profitability of the business, which is why it is important to analyze within the commercial area or sales force Some critical points, such as sales returns, sales profit margin, costs related to business activities and turnover of the organization's customer portfolio. All sellers must work both under the client's requirements but taking into account and guaranteeing the economic performance of the company they work for, it is very common to observe in some with little ethics in complicity with their clients to sell alarming amounts to increase their commission,to then return the merchandise to their own company, thereby causing a large increase in the inventory of merchandise and generating large liquidity problems for the company.
Something similar occurs when clients are granted very long terms for the payment of debts which, combined with poor portfolio management, cause the company dire consequences, this would cause the company not to have a constant flow of cash. necessary to cover its obligations, forcing it to resort to external sources of financing to solve its liquidity problems, companies must constantly analyze and classify their portfolio by age to manage it in the best way, and resort to the available means such as factoring to recover all the debts of difficult collection, improving its liquidity at the same time that it solves a problem in the relation with its clients,In addition to this, it is essential to constantly update the credit quotas granted to its clients to constantly analyze their financial statements and their economic situation, counteracting the possibility that the delinquent portfolio will increase in the company.
Another of the most important aspects that can be highlighted for its effects on the profitability of the company are the operational costs that can be caused by ineffective and technified processes, for a company that seeks profitability and in some cases the differentiation in costs is makes it necessary to develop operations strategies that allow the company to overcome the challenges imposed by competition between companies and achieve its organizational objectives, being able to point out what;
The organization's strategy is highly dependent on the operations strategy. To reach this level, it is necessary to have a holistic vision on the part of senior management, who understands the interaction between the needs of customers and operations. (zuñiga, (sf).)
All of the above leads us to deduce that today's businessman or manager must handle all the tools that the administration can currently have to assess the company, AND One of the most effective tools to carry out a financial diagnosis of the company are the Management indicators, these make it possible to make an x-ray of all business activity, detect money leaks to control through the different options and develop the strategies that the company can implement, in addition to this it can be evidenced through a good financial analysis which may be the main flaws that the company has, enhance those strengths and develop a business model that is innovative and effective for resource management and decision-making.
conclusion
At the end of this work it can be concluded that all companies as a set of resources and people are obliged to adjust to the demands of the environment. Based on this, it is important to clarify that they must deeply analyze what internal aspects are a weakness compared to their competition, this is where the importance of properly managing the organization's finances lies, since this is the main cause of the closure of companies in Colombia. Because entrepreneurs generally have little preparation in subjects such as finance, accounting, economics, or business administration.
It can be pointed out that every entrepreneur must pay attention to those critical areas where the greatest flow of resources occurs and it is observed that there are some processes in companies that, due to their responsibility in managing resources, should be considered strategic for organizations, since that proper planning, well-established objectives and effective control in these areas, translates into better performance for the company while impacting on competitiveness and financial capacity.
It can also be noted that all organizations are small, medium or large companies must visualize and follow the administrative process since good economic management starts from good planning continuing with the good integration and administration of resources, it is important to highlight that the main problem for organizations originates from inappropriate or rarely analyzed sources of financing, which often afflicts the company since its inception and continues to affect it when having budgets that are either purchasing, sales and / or production are not according to reality and compel the businessman to leverage financially with interest rates that exceed the profit for the year.
In the same way, the organization is disadvantaged with some bad habits in the employees that, from their lack of ethics, sometimes harm the financial statements by conspiring or engaging in practices such as negotiations and sales to unreliable clients who will later make returns that will affect inventories and liquidity, or in the same way, unplanned purchases that end up exhausting vital financial resources for the organization. Combined with the above, on many occasions the company ends up being greatly affected by having inadequate portfolio management in which collections do not have the required rotation.
Considering that the company can affect its finances from various angles, it must resort to the instruments and techniques that the administrator currently has in order to assess the company and make the appropriate decisions supported by analysis and objectivity, we can include that there are currently a large number of tools that help management and decision-making, among these we can find accounting, budgets and auditing, supported by this, the company can be assessed and measured by means of indicators and take the better decisions that minimize risk.
Bibliography
- "Bankers warn that credit will be more expensive in 2014". (16 of 12 of 2013). Obtained from portafolio.co: http://www.portafolio.co/economia/banquerosHerrera, HF (June 03, 2011). business valuation. Obtained from portafolio.co: http://www.portafolio.co/opinion/Ortiz, D. (October 12, 2011). Lyndall urwick. Obtained from Slideshare: http://www.slideshare.net/DeopSite/lyndall-urwickZuñiga, r. (retrieved on February 15, 2014 from (sf).). competitiveness, operations a strategic contribution to your company. Obtained from the official magazine of the Caribbean, Central and South American Association of Corrugators:
