The Relevance of Financial Management in SMEs
Small and medium-sized enterprises (SMEs) continue to manage their financial administration on paper, having only partially embraced digitalization by migrating data to spreadsheets. However, this approach leaves 40% of SMEs unable to understand their financial standing, leading to failure.
Juana Ramírez, president of the Board of Directors of the Association of Entrepreneurs of Mexico (Asem), explains that failing businesses are those without administrative and financial controls, planning, data analysis, or organized data, which puts them at risk of cash flow problems.
Why is Financial Planning Often Neglected?
According to the Financial Management and Accounting Report of Mexican Companies 2025, conducted by Asem and Sigo Aspel, 99% of businesses without administrative and accounting areas are microenterprises. These microenterprises likely remain as such due to the lack of vision in administrative and accounting management.
- 30% of businesses don’t know how to plan finances.
- 20.4% lack specialized personnel for financial planning.
- 12.7% don’t have the time to plan finances.
The absence of financial management makes it difficult for businesses to plan, understand the true costs of their products and services, and maintain liquidity.
Juana Ramírez emphasizes that when businesses have personnel and tools focused on numbers, they understand the costs associated with service provision or product sales. Without this focus, it’s common for businesses to lose money.
Financial Advisory Boosts Income
Companies receiving financial advisory from their administrative area have 69% more income, highlighting the importance of having skilled personnel. Financial professionals should not only manage business administration but also act as organizational advisors.
However, only 35% of companies receive financial advisory from the accounting department for decision-making.
Another significant finding is that SMEs reviewing their financial statements at least every three months generate 751% more revenue than those that don’t.
Administrative Software Increases Sales by 1,300%
There’s a substantial difference between SMEs using administrative and accounting software. Those implementing these tools see a 1,300% increase in sales compared to those who don’t.
However, 70% of companies do not use administrative software and six out of ten still rely on spreadsheets, which are manually filled, causing time loss and increasing errors.
David Ortiz, founder and CEO of Siigo Aspel, notes that while these companies feel proud for using something, it actually increases the risk of survival and hinders scalability.
“Operating without finance and accounting professionals means making decisions with limited information, lacking cash flow planning, and without structures to evaluate risks.”
Key Questions and Answers
- Q: Why do SMEs struggle with financial planning? A: 30% don’t know how to plan, 20.4% lack specialized personnel, and 12.7% don’t have the time.
- Q: What are the consequences of poor financial management? A: Difficulty in planning, unawareness of true costs, and lack of liquidity.
- Q: How does financial advisory impact SME income? A: Companies with financial advisory have 69% more income.
- Q: How often should SMEs review financial statements? A: Reviewing at least every three months results in 751% more revenue.
- Q: How does administrative software affect SME sales? A: Implementing such tools leads to a 1,300% increase in sales.
- Q: What are the risks of not using administrative software? A: Increased survival risk and hindered scalability due to limited information, lack of cash flow planning, and inadequate risk evaluation structures.
