Financial Guide for SMEs - SME Corporation Malaysia

Financial Guide for SMEsSection II : Improving Business FinancesNow that you have been introduced to thebasics of business fi nance, you can use thesetools to improve the fi nancial management ofyour business. Proactive management of thefi nancial position of your business would ensurethat any issues encountered will be identifi edearly so that appropriate actions to rectify thesituation can be taken in a timely manner.Through the use of the fi nancial informationdiscussed in the fi rst section of the Guide, andby implementing the processes introduced in thissection, you would be on the way to achievinggood fi nancial management for your business.Improving businessfi nances meansyou need to take apractical approachto implement newprocesses that allowyou to monitor thekey aspects of yourbusiness profi tabilityand cash fl owProfi tability and cash fl ow are the key areas that should be monitored on anongoing basis to help ensure that your business prospers. This section of theGuide presents a number of easy-to-understand procedures and tools that canassist you in maintaining profi tability and improving cash fl ow.Managing the business fi nances is all about taking a practical approach tomaintaining profi tability and improving cash fl ow, together with having thediscipline to continuously monitor and update the financial information ascircumstances change.37Chapter 2-5 p22-65 Eng.indd 378/15/11 5:01:54 PM