Problems and Countermeasures of SME Cash Flow Management in China

摘要

It's well known that cash flow is more important and more objective than profit for SMEs. Cash flow management aims to make a choice between the asset's liquidity and profitability to obtain the greatest profitability for long-term. In the context of the global financial crisis, this paper makes proposals about the problems of cash flow management for SMEs that they should formulate correct self-development strategies and cash flow strategies and improve cash flow management in a tactical point of view. SMEs should focus on revenue and control scientifically cash outflows to establish a better cash flow management system and strengthen the daily management of cash flow. Early risk warning system of cash flow is established to help SMEs improve cash flow management, the viability and competitiveness of SME, and get rid of the difficult situation of corporate finance to improve our service system for SMEs.