FORMATION AND IMPLEMENTATION OF AN EFFECTIVE CASH FLOW MANAGEMENT PROCESS AT SMALL AND MEDIUM-SIZED BUSINESS ENTERPRISES UNDER CONDITIONS OF ECONOMIC REVIVAL

Abstract

The methodological and applied principles of formation and implementation of an effective cash flow management process at small and medium-sized business enterprises under conditions of economic recovery are substantiated. The author's interpretation of the category content of «enterprise cash flow management process» is proposed as a set of financial measures to implement the operational, financial and investment activities of enterprise with the aim of forming a sufficient amount of cash and other means of payment, which involves planning and forecasting, organizing the receipt and movement of cash resources, stimulating employees of structural divisions to save overtime costs, conducting control procedures and monitoring the payment discipline of the main participants in financial transactions. This made it possible to substantiate the feasibility of optimizing the structure of cash flows that are coordinated in time. It is proved that the key benchmarks of the effective structure of incoming (positive, surplus) and outgoing (negative, deficit) cash flows are the optimal ratio of own and borrowed funds, as well as a high level of return on equity (ROE) while minimizing the financial risk ratio. The author's own version of the main stages of optimizing the cash flows structure at small and medium-sized business enterprises is proposed. This allowed defining the sequence of cash flows formation of different types, allocating directions of balancing their total amount and synchronizing their receipt in time, while ensuring the maximum amount of net cash flow at enterprises. The key criteria for evaluating the effectiveness of cash flow management process at small and medium-sized business enterprises are generalized, which will help ensuring the efficient distribution of enterprises' means of payment in the dynamics. The sequence of stages of the cash flow management process at small and medium-sized business enterprises based on the fulfillment of functional tasks is recommended.