Cash Flow Management – A Top Concern of SME

Plus and minus sign and icon business benefit cost balance concept 3d illustration.
Among the most crucial concerns of an SME, cash flow management is a major one. An SME is a small or medium sized organization which employs people less than 250 who tend to produce a revenue of less than 20 Million Euro. Such enterprises have to face a number of strategic and tactical challenges which cover up the cloud of cunning challenges. It faces challenges in terms of technology, communication, finances, human resource and marketing. Such enterprises also focus upon the marketing challenges as well.  Following are the certain steps which can be implemented in order to conquer issues related to cash flow management:

Cash Flow Measurements Should be Made Accurately

Cash flow management is an overwhelming and hectic task, therefore it is necessary to focus on how to overcome cash debts. Cash flow must be recorded accurately through several available bookkeeping softwares such as GnuCash or QuickBooks. These greatly aid in scheduling the return dates of the cash flows and, in alarming scenarios when the returning time of cash is near, provides a great support to small business owners. Larger investments are made in order to drive larger profits which ultimately allows an enterprise to flourish. Therefore, measurements are important to overcome issues encountered with cash flow management.

Improvement of Awaiting Payments

An enterprise must try to return their cash flows rapidly. Following are certain techniques which can be used to clear all payments:

  1. Discount to customers may be offered in reward to their efficiency in paying their bills.
  2. At the time of order placement, customers must be asked to make payments.
  3. Customers unable to pay cash can use a check or credit card to pay their bills.
  4. Update your inventory system in order to improve payment methods to make larger payments easily.
  5. Transactions must be clearly observed and tracked through issuing invoices regularly and by using bookkeeping softwares. This would help at the time of returning cash flows.
  6. COD is an efficient tool which refers to cash on delivery in order to overlook payment delay which would further help out an enterprise in clearing its debts.


Not Enough Total Margins

 Economists talk about the supply and demand of goods and services. They portray certain rules and regulations for efficient supply and demand of goods and services for the exact determination of price. Similar rules apply to SMEs who face cash flow problems due to wrong determination of prices when they sell goods and services for a low price ultimately falling into debt. Companies must strive for an appropriate determination of prices to avoid cash flow discrepancies.



SMEs are enterprises which deal with having fewer employees which generate lesser revenues. This ultimately leads a company to take debts from other companies resulting into cash flow problems. When a company spends more than its earnings, it results in debt which then must be returned through appropriate scheduling of cash returns. Using bookkeeping software and/or hiring a bookkeeping service will aid in properly recording all transactions and, ultimately, lead a company to success.

Check out America's Best Bookkeepers
About Complete Controller® – America’s Bookkeeping Experts Complete Controller is the Nation’s Leader in virtual accounting, providing services to businesses and households alike. Utilizing Complete Controller’s technology, clients gain access to a cloud-hosted desktop where their entire team and tax accountant may access the QuickBooks file and critical financial documents in an efficient and secure environment. Complete Controller’s team of  US based accounting professionals are certified QuickBooksTMProAdvisor’s providing bookkeeping and controller services including training, full or partial-service bookkeeping, cash-flow management, budgeting and forecasting, vendor and receivables management, process and controls advisement, and customized reporting. Offering flat rate pricing, Complete Controller is the most cost effective expert accounting solution for business, family office, trusts, and households of any size or complexity.