Financial Tools in the Microenterprise Development of La Esperanza Parish

Abstract

This study focuses on evaluating the relevance of financial tools in the progress of microenterprises in the rural parishes of La Esperanza. Understanding these tools is essential as they go beyond innovation, enabling sustainable business growth. The article highlights crucial instruments such as the balance sheet, income statement, and cash flow, critical to the advancement of any for-profit or non-profit organization. The research adopts a qualitative methodology, supported by deductive, inductive and bibliographic methods. These approaches provide essential information for the development of research. The findings reveal that some companies, when incorporated with the SRI, lack adequate tax management, managing it empirically. Business transactions result in monthly losses, with high or no VAT returns. In addition, the payment of the 2% income tax during the semester is done inadequately due to ignorance of the necessary financial statements. Microenterprises in La Esperanza lack an understanding of financial tools, resulting in an inability to plan for the long term. These findings highlight internal weaknesses, evidencing that financial management is limited to a basic budget, resulting in monthly losses.