Finanzas Para Hoteles y Restaurantes: Tesorería y Contraloría

Understanding the Concept of Business

Introduction to Financial Functions in Business

• The session begins with an overview of the task at hand, emphasizing continuous review and engagement with the material presented on Whiteboard.

• Discussion shifts to the financial function within a company, particularly focusing on its relevance to businesses in gastronomy and tourism.

Defining a Business

• A business is defined as a collection of elements, people, and functions aimed at achieving a specific goal.

• The primary objective of most businesses is economic gain, equating business with profit generation or obtaining economic benefits.

Historical Context and Evolution

• The term "business" has roots dating back to the Renaissance period when it began to be widely used.

• Today, even single-person operations can be considered complete businesses if they possess necessary resources and functions directed towards a common goal.

Distinction Between Personal Finances and Business Finances

• It’s crucial to differentiate between personal finances—focused on daily living expenses—and business finances that aim for broader objectives.

• Understanding this separation helps maintain objectivity regarding personal spending versus business expenditures.

Key Activities Within a Business

Financial Functions Overview

• Businesses engage in various activities essential for achieving their financial goals; these include specialized tasks related to finance.

• As students progress from undergraduate studies into master's programs, they will delve deeper into specialized topics relevant to hotels and restaurants within the tourism sector.

Importance of Different Departments

• Each department (e.g., sales, human resources, production) plays a critical role in overall business operations; sales are highlighted as vital for generating revenue.

Human Resources Management

• In larger organizations, managing human resources becomes essential; this includes ensuring fair compensation and creating a healthy work environment.

Exploring Financial Concepts

Treasury vs. Controllership Functions

• Two main financial concepts are introduced: treasury management (cash flow management) and controllership (overseeing dividends).

Cash Flow Management Explained

• The discussion emphasizes understanding cash flow as it relates directly to how money moves within the company.

This structured approach provides clarity on key concepts discussed during the session while allowing easy navigation through timestamps for further exploration.

Cash Flow in Business

Understanding Cash Flow Dynamics

• The concept of cash flow is illustrated through a simple box diagram, where money enters and exits the business, representing the flow of cash. This highlights the fundamental principle that money coming into a company must also be accounted for when it leaves.

• The term "empresa" (business) is used interchangeably with "negocio" (business), emphasizing that any income generated by operations contributes to cash flow. This sets the stage for discussing various sources of cash inflow.

Sources of Cash Inflow

• The first source of cash inflow is operational revenue, which refers to money earned from selling products or services. This is considered the primary method businesses use to generate income.

• Borrowing funds represents another avenue for acquiring resources, where businesses may seek loans to support growth or maintain operations during financial difficulties. This introduces a discussion on debt management and its implications for business health.

• Owners or shareholders may inject personal funds into the business as a means to sustain operations or facilitate growth, particularly when facing losses or needing additional capital. This reflects on ownership's role in financing strategies.

• Selling assets can also provide necessary funds; this includes tangible items like equipment and real estate, as well as intangible assets such as trademarks and cryptocurrencies, showcasing diverse methods for resource acquisition.

Utilization of Cash Resources

• Once funds are acquired, they can be allocated towards paying off existing debts (liabilities), distributing profits among shareholders after operational cycles yield gains, investing in new assets for business expansion, or remitting returns to investors based on their contributions. Each option reflects strategic financial planning within an organization.

Financial Management Functions

• The function of financing within a company involves two main areas: control (contraloría) and treasury (tesorería). Focusing on treasury functions reveals that one key responsibility is sourcing funding at minimal costs while ensuring timely repayment obligations are met to avoid increasing liabilities unnecessarily.

Risks Associated with Financing

• Timeliness in fulfilling debt obligations is crucial; failure to do so can lead to increased debt burdens and potential financial distress for the company—highlighting the importance of effective cash flow management practices in maintaining solvency and operational stability.

• Financing options generally fall into two categories: money markets and capital markets; however, trade credit from suppliers also serves as an informal yet vital source of financing by allowing businesses time before payment is due after receiving goods or services—illustrating practical aspects of managing working capital effectively.

Financing in Business Cycles

Understanding Financing Scenarios

• The discussion begins with an overview of financing within natural business cycles, particularly focusing on payment cycles observed in financial statements of hotels and companies like Vivo and CEMIX.

• Emphasis is placed on understanding financing through suppliers, alongside the roles of money markets and capital markets.

Money Market Insights

• The money market is defined as a space for short-term borrowing where funds are expected to be repaid quickly.

• An example provided is Cetes, a government mechanism for acquiring funds by offering interest rates to investors.

Characteristics of Money Market Transactions

• The government uses Cetes to finance itself, indicating that it borrows money and pays back slightly more than what was borrowed.

• Loans in the money market can have very short durations, sometimes as brief as a few days or even weekends.

Transitioning to Capital Markets

• It’s noted that loans exceeding one year transition into capital markets, which involve long-term debt instruments rather than short-term loans.

• A distinction is made between trading stocks (short-term actions in the money market) versus investing in long-term debt instruments.

Challenges in Capital Markets

• Entering capital markets requires adherence to numerous regulations and minimum capital requirements set by institutions like the Bolsa Mexicana de Valores (Mexican Stock Exchange).

• Examples of companies listed include Radio Mobile Dipsa (Telse), Bimbo, and Grupo México, highlighting their volatility.

Informal Debt Placement

• There exists an informal sub-market for debt placement that operates outside traditional frameworks but still adheres to certain established formats.

Crowdfunding as a Modern Capital Market Tool

• Crowdfunding has gained popularity over the last decade; individuals pitch business ideas online seeking investment from the public.

• This model allows entrepreneurs without initial capital to fund projects while offering returns or benefits to investors based on profits or product access.

This structured summary captures key insights from the transcript regarding financing mechanisms within business cycles, emphasizing both theoretical concepts and practical examples.

Business Financing and Capital Management

Understanding Business Financing

• Discussion on the rapid return of investments in business financing, emphasizing the distinction between borrowing money and becoming a partial owner of a company.

• The importance of funding ideas and assessing market viability before expanding business operations, highlighting that many entrepreneurs start without a solid business plan.

Capital Administration

• Overview of capital management within treasury functions, stressing the need for effective administration as businesses grow, even for small enterprises.

• Key considerations on how to utilize received funds effectively—whether for purchasing inventory or settling debts—and ensuring resource recycling for repayment.

Investment Strategies

• Exploration of various investment types and their timing to maximize productivity; emphasizes the necessity of maintaining inventory levels in restaurants due to high turnover rates.

• Challenges faced by restaurants regarding inventory management, noting that inventory is often treated more as an expense than an asset.

Role of Controllership

• Introduction to controllership functions focusing on payment oversight within companies; highlights the dual role in treasury and controllership responsibilities.

• Explanation of controllership's primary functions: establishing rules, verifying compliance with those rules, and generating financial information.

Importance of Accounting Information

• Clarification that accounting serves to provide essential information about a business's financial health; stresses its relevance for both internal and external users.

• Emphasis on the structured data recording necessary for generating accurate financial reports; notes that accounting can be seen as both a technique and an art form.

Users of Financial Information

• Discussion on different users of accounting information—internal (managers needing sales records) versus external (government agencies, shareholders).

• Distinction between administrative accounting used internally versus financial reporting required by external stakeholders like banks or investors.

Contabilidad Financiera y Administrativa

Conceptos Básicos de Contabilidad

• La Contabilidad Financiera se basa en reglas formales de presentación, mientras que la Contabilidad Administrativa puede ser más flexible.

• Existen normas internacionales de información financiera (NIIF), además de las NIPS en México, que guían tanto la contabilidad financiera como la administrativa.

Impuestos y Obligaciones Fiscales

• Según el Artículo 31 de la Constitución Mexicana, todos los ciudadanos tienen la obligación de contribuir al gasto público mediante impuestos.

• Los principales impuestos mencionados son el ISR (Impuesto Sobre la Renta) y el IVA (Impuesto al Valor Agregado), así como impuestos específicos para sectores como el turismo.

Detalles sobre Impuestos Específicos

• En el sector turístico, se aplica un impuesto sobre la ocupación hotelera. Este es un ejemplo del impacto fiscal en negocios específicos.

• El ISR grava las ganancias; por ejemplo, si una empresa genera $100 y tiene costos de $30, paga un 30% sobre su ganancia neta.

Costo Social del Trabajo

• El costo social promedio por trabajador es aproximadamente un 40% adicional a su salario base debido a obligaciones fiscales y sociales.

• Las empresas pueden optar por registrar salarios mínimos para maximizar ganancias, pero esto puede tener implicaciones legales respecto a los derechos laborales.

Participación de los Trabajadores en Utilidades

• Existe una obligación legal para pagar a los trabajadores una parte de las utilidades generadas por la empresa, calculada según el volumen de ingresos. Esto implica que los trabajadores también contribuyen indirectamente al ISR empresarial.

Outsourcing and Tax Evasion: A Complex Relationship

The Impact of Outsourcing on Legislation

• Discussion on the implications of outsourcing practices, particularly in relation to new legislation that began this year.

• Recognition of the exploitation within outsourcing frameworks, including simulation operations aimed at tax evasion.

Consequences of Tax Evasion

• Highlighting the significant financial loss to the government due to tax evasion, amounting to billions.

• Explanation of severe legal repercussions for individuals unknowingly involved in fraudulent schemes, including potential imprisonment and asset freezing.

Understanding Outsourcing Practices

• Definition of outsourcing as a practice where companies rent skilled personnel for specific tasks, illustrated with an example from shoe manufacturing.

• Discussion on how outsourcing has evolved into a model often used for tax evasion and its implications.

Government's Role in Encouraging Evasion

• Argument that government policies can inadvertently incentivize tax evasion through punitive measures that drive businesses to seek loopholes.

• Suggestion that easing regulations could reduce illegal practices by lessening the burden on taxpayers.

Historical Context and Economic Implications

• Reference to historical prohibition in the U.S. during the 1930s as a parallel to current issues with illegal markets arising from prohibitive laws.

• Exploration of how prohibitions create illegal markets that benefit certain entities economically, raising questions about governmental motivations behind such policies.

Budgeting and Financial Management Insights

• Overview of budgeting as a crucial aspect of financial management within organizations, emphasizing its role as an action plan for future execution.

• Explanation of how budgets are created based on estimations over specific operational periods (quarterly, semi-annually, annually).

Cost Analysis in Business Operations

• Importance of understanding costs associated with business processes and their impact on pricing and profitability.

• Discussion on cost analysis as essential for determining profit margins and overall business health through income statements.

Understanding Costs and Expenses in Business

Key Concepts of Costs and Expenses

• Understanding the difference between costs and expenses is crucial for financial analysis. Costs refer to expenditures necessary for executing business operations, while expenses are ongoing operational costs like rent and utilities.

• For example, in a refrigerator sales business, the purchase price of refrigerators constitutes the cost, whereas electricity bills and transportation fees represent expenses. This distinction is vital for accurate financial tracking.

Control Functions in Financial Management

• The function of control within a business context involves analyzing resource consumption effectively. For instance, determining how much water is used per hotel room can be complex but essential for managing costs efficiently.

• Implementing methods to track resource usage requires extensive data collection over time, such as maintaining detailed Excel spreadsheets to analyze historical consumption patterns. This process can be labor-intensive but yields valuable insights into cost management.

Internal Auditing as a Control Mechanism

• Internal auditing plays a critical role in ensuring that company resources are safeguarded and policies are adhered to. Auditors verify that assets like equipment are functioning correctly and that inventory is managed properly to minimize waste.

• Effective internal audits help identify losses due to improper storage or handling of goods (e.g., food spoilage), which can significantly impact profitability if not addressed promptly. Regular reporting on these metrics is essential for maintaining operational efficiency.

The Necessity of Oversight in Operations

• While internal auditors may not always be popular among staff due to their oversight role, their work is necessary for identifying errors and inefficiencies within operations, ultimately contributing to better financial health for the organization.

• In hospitality settings, night auditors ensure compliance with procedures during off-hours by monitoring staff activities and cash handling practices—this vigilance helps maintain accountability across all levels of operation.

Financial Management Cycle Overview

• Understanding the financial management cycle involves recognizing the flow of money through various business activities aimed at achieving customer satisfaction while ensuring profitability through effective cash management strategies.

• The cycle encompasses all transactions from revenue generation to expense outflow; grasping this concept allows businesses to optimize their operations financially by understanding how long it takes for investments to return profits effectively.

Understanding Customer Satisfaction in the Tourism Industry

The Importance of Customer Satisfaction

• Emphasizes that customer satisfaction is crucial; if customers are not satisfied, it disrupts the business cycle.

• Discusses how different sectors within tourism refer to their clients differently (e.g., guests in hotels, diners in restaurants).

• Highlights that companies like McDonald's do not just sell food but rather an experience, indicating a shift from product to service-oriented business models.

Business Models and Experiences

• Compares businesses like Palacio de Hierro and Liverpool, noting they may appear similar but offer distinct experiences and services.

• Points out that hotels do not merely provide lodging; they offer unique experiences based on their branding and target market.

Differentiation in Hospitality Services

• Explains that each hotel has its own specialization—some focus on community while others emphasize tranquility or luxury.

• Contrasts different types of accommodations (e.g., traditional hotels vs. Airbnb), stressing that they cater to different customer needs despite both being forms of lodging.

Understanding Business Cycles

• Discusses the importance of understanding what a business sells as it relates to the overall business cycle and revenue generation.

• Describes the cyclical nature of sales, payments, and customer interactions within the tourism industry.

Financial Operations in Tourism

• Outlines typical financial operations: purchases, sales, collections, and payments specific to tourism businesses.

• Notes that payment cycles are often immediate in restaurants compared to other industries due to quick service delivery.

Conclusion on Financial Awareness

• Mentions the significance of understanding financial information for effective management within hospitality settings.

Investment Strategies and Inflation

Understanding Investment Returns

• The discussion begins with a reference to a previous meeting, indicating the importance of clarifying investment topics.

• A hypothetical investment scenario is presented where an initial amount of 250,000 pesos yields an annual return of approximately 8,800 pesos.

• The speaker emphasizes the need for calculations to determine the percentage yield from investments, leading to a calculated return of 5.12%.

The Impact of Inflation on Investments

• Inflation is introduced as a critical factor in evaluating investment returns; it’s essential that returns exceed inflation rates.

• Discussion includes potential bank fees and commissions that could reduce net returns from investments.

Risk Assessment in Investments

• The conversation shifts towards risk assessment, suggesting that higher risks may lead to better returns but also require careful consideration.

• There’s mention of tax implications related to investments, highlighting the complexity involved in financial planning.

Introduction to Cryptocurrencies

• A transition into cryptocurrency investments occurs, describing platforms that facilitate buying cryptocurrencies akin to currency exchanges.

• The speaker shares personal experiences with cryptocurrency trading and its relation to inflation coverage.

Cryptocurrency Market Insights

• Various cryptocurrencies are listed (e.g., Bitcoin, Ether), emphasizing their market presence and potential for investment.

• An explanation about Bitcoin's divisibility is provided; one can purchase fractions of Bitcoin rather than whole units.

Real-Life Trading Examples

• A specific example illustrates how Bitcoin prices fluctuate over time; the speaker recounts purchasing Bitcoin at different price points.

• Details about past transactions are shared, including dates and amounts spent on Bitcoin purchases.

This structured summary captures key discussions around investment strategies focusing on inflation impacts and introduces cryptocurrency as an alternative investment avenue. Each point links back to specific timestamps for easy reference.

Bitcoin Price Analysis and Historical Insights

Understanding Bitcoin Pricing Trends

• The discussion begins with the simplicity of tracking Bitcoin prices daily, emphasizing the importance of monitoring price changes over time.

• A historical perspective on Bitcoin pricing is introduced, referencing its value since 2009 and highlighting a significant low point noted by an unnamed individual.

• An example illustrates that purchasing Bitcoin in 2012 at approximately six pesos could have led to acquiring 5,000 bitcoins if one had invested 30,000 pesos.

Potential Gains from Historical Investments

• The conversation shifts to calculating potential returns based on historical prices; for instance, considering a purchase of 500 bitcoins when the price was around 100 pesos.

• A quick conversion exercise reveals that investing 30,000 pesos could yield substantial amounts in dollars and subsequently in bitcoins.

• The peak price of Bitcoin in January 2018 is discussed, with estimates around $17,000 leading to calculations of potential profits from earlier investments.

Profit Calculations and Tax Implications

• Further calculations are made regarding how much profit could be realized if one sold their bitcoins at the highest recorded price; this includes discussions about tax implications on gains.

• If someone had bought bitcoins back in 2012 and sold them at their peak value, they would have made approximately 131 million pesos after taxes.

Ethical Considerations in Cryptocurrency Trading

• Ethical considerations surrounding cryptocurrency trading are briefly touched upon; there’s an acknowledgment of the need for responsible financial practices despite potential large gains.

Current Market Conditions and Future Predictions

• The speaker notes current market conditions where prices may fluctuate significantly; there's a suggestion that understanding these dynamics requires deeper knowledge about cryptocurrencies like Bitcoin.

• A simpler example is proposed to illustrate recent trends without delving into extensive history; this aims to make concepts more accessible for learners.

Recent Investment Opportunities

• Discussion continues about recent investment opportunities within a short timeframe—specifically mentioning buying Bitcoin at lower prices and selling for higher returns shortly thereafter.

• The possibility of doubling investments through strategic timing is highlighted as still viable given current market conditions.

This structured overview captures key insights from the transcript while providing timestamps for easy reference.

Inflation and Its Impact on Purchasing Power

Understanding Historical Price Trends

• Discussion on historical price peaks, indicating that prices can return to previous highs, referencing June 2009 as a significant point.

• Mention of external factors affecting prices, specifically the impact of the coronavirus pandemic on market dynamics.

The Role of Inflation in Investment

• Emphasis on considering inflation when making investments; suggests allocating a portion of funds for investment while being mindful of economic conditions.

• Introduction to inflation as a concept: defined simply as the loss of purchasing power over time.

Defining Inflation

• Explanation that inflation results in consumers being able to buy fewer goods with the same amount of money compared to previous years (e.g., 2020 vs. 2015).

• Visual representation described where purchasing power decreases as inflation rises, illustrating their inverse relationship.

Financial Information and Inflation

• Clarification that financial information must be constantly adjusted for inflation; today's currency value differs from past values.

• Noted that fines and penalties are also subject to inflation adjustments in Mexico, impacting real payment amounts over time.

Adjusting for Inflation: Practical Application

• Introduction of an adjustment factor formula used to account for changes in price levels over time.

• Example provided regarding property value appreciation since 1995, emphasizing the need for calculating current worth based on historical data.

Calculation Exercise

• A practical exercise is introduced involving determining the current value of a property purchased in 1995 using national price indices.

• Instructions given for finding relevant price index data necessary for calculations related to historical purchases.

Understanding Historical Value Adjustment

Calculating Historical Value of Land

• The speaker discusses the process of adjusting historical land values to current pesos, using a multiplication factor derived from inflation rates.

• They illustrate that one million pesos from 1995 would equate to approximately 4,703,390 pesos today due to inflation.

• The conversation highlights the potential overvaluation or undervaluation of land based on its location and surrounding developments.

Relating Historical Values to Current Market Prices

• The speaker emphasizes the importance of comparing adjusted historical values (4.7 million pesos) with current market prices (20 million pesos) to determine potential profit from selling land.

• They clarify that the adjustment factor is crucial for converting old monetary values into present-day equivalents.

Inflation Trends and Economic Impact

• A discussion on inflation trends shows how inflation affects purchasing power, noting a slight increase in inflation rates between December 2018 and December 2019.

• The speaker explains how year-on-year comparisons reveal significant changes in inflation rates, affecting economic conditions.

Effects of Minimum Wage Increases

• The impact of minimum wage increases on business profits and pricing strategies is examined, suggesting that higher wages may lead companies to raise prices.

• This phenomenon indicates that while people earn more money, their purchasing power may not improve due to rising costs.

Monitoring Economic Conditions for Business Success

• Emphasizing the need for businesses to monitor market purchasing power closely, the speaker notes this as critical for product sales success.

• They reflect on educational gaps regarding these economic principles and express a commitment to integrating practical applications into their curriculum.

Future Class Topics

• Plans are made for future classes focusing on exercises related to updating financial figures according to inflation indices (INPC).

• There will also be discussions about cryptocurrency valuation and currency exchange concepts in upcoming sessions.

Cryptocurrency Overview and Future Implications

Introduction to Cryptocurrency

• The speaker discusses the nature of cryptocurrencies, questioning their functionality and relevance in current financial systems.

• Emphasizes the importance of understanding cryptocurrency as a precursor to discussing currency exchange topics in future classes.

• Suggests that cryptocurrencies are not just a passing trend but may play a significant role in the future of finance.

• Indicates that the upcoming discussion will bridge traditional currency concepts with cryptocurrency applications.

• Concludes by highlighting the need for further exploration into how cryptocurrencies operate and their potential impact on economic systems.