THE ROLE OF CASH FLOW ANALYSIS IN THE DEVELOPMENT OF SMALL AND MEDIUM-SIZED BUSINESSES

Abstract

The article is dedicated to the analysis of cash flow movements in the small and medium-sized business sector. Key aspects of financial management in this economic segment are examined, including the selection of effective strategies for fund collection and expenditure. The article is based on the study of financial indicators of enterprises in various fields of small and medium-sized business. The impact of economic factors on cash flows and tools for effective financial management are discussed. Key aspects related to cash movements in companies are identified, such as revenue generation methods, expenses, and liquidity management strategies. The author emphasizes the importance of effective financial management for ensuring the stability and development of enterprises, and details the toolkit for analyzing cash flows, such as cash flow reports, budgeting, and other financial instruments. Additionally, the article explores the challenges faced by small and medium-sized businesses in the context of cash flow management and provides practical recommendations for businesses in this sector. Cash flow analysis is identified as a critical element of successful financial planning and strategic development for small and medium-sized businesses. The aspects of such analysis are illustrated using a joint-stock company as an example. It is established that the creation of cash flows is closely related to the financial condition of the enterprise, and relevant indicators are proposed for assessing this process. It is argued that to manage cash shortages or surpluses, a balance between positive and negative cash flows must be ensured. The issue of preventing a net cash flow deficit is explored through the identification of cash gaps using indicators such as frequency, duration, and depth of cash gaps. The conclusions of the study underscore that cash flow analysis allows for an objective assessment of the effectiveness of financial and economic activities of the enterprise and its adaptability to modern conditions. The article provides recommendations for enhancing the efficiency of cash flow management.