Asharqia Chamber organizes a meeting on “Cash Flow Management in Small and Medium Enterprises” in Jubail
Asharqia Chamber, represented by the Small and Medium Enterprises Center, organized an event titled "Cash Flow Management in Small and Medium Enterprises" on the evening of Wednesday, March 6, 2024, at its branch in Jubail. The event featured a talk by business development consultant Dr. Hussein bin Ali Al-Sheikh.
Al-Sheikh emphasized the importance of preparing a financial budget for the establishment, aiming to increase the company's profitability, market share, brand reputation, or market survival. He stated that the budget should be drafted as a future plan for anticipated financial activities to be achieved within 12 months under normal conditions, predicting total revenues and expenses and planning for all financial possibilities.
Regarding financial liquidity management, Al-Sheikh explained that it involves planning and controlling the flow of funds in and out of the establishment over a specified period. If revenues exceed expenses, the financial situation is positive; however, if expenses exceed revenues, the financial situation becomes negative. Therefore, the company management must implement necessary strategies to maintain continuous financial liquidity availability.
Regarding strategic solutions for managing financial flows, Al-Sheikh advised the necessity of using electronic programs for cash flow management, financial forecasting, continuous monitoring and tracking, developing sales policy and customer relations, reducing expenses, cost management, seeking funding sources, diversifying income sources, improving cooperation policy with suppliers, inventory management, project delay, and finally establishing a reserve fund.
Al-Sheikh emphasized the importance of cash flow management, which lies in achieving financial stability for the establishment, reducing financial risks, ensuring sufficient liquidity availability at the right time, analyzing and predicting cash needs and their timing, improving the efficiency of the establishment's fund utilization, controlling fund direction, and enhancing financial relationships with suppliers, customers, and employees.
