scholarly journals Impact of Financial Management Practices on Sustainable Growth of SMEs: A Case of Catering Organizations in Bulawayo Metropolitan Province

2022 ◽  
Vol 4 (3) ◽  
pp. 48-53
Author(s):  
Thandiwe Chisiri ◽  
Sibongile Manzini
Keyword(s):  
Financial Reporting ◽  
Financial Literacy ◽  
Financial Management ◽  
Management Practices ◽  
Capital Budgeting ◽  
Literacy Skills ◽  
Sustainable Growth ◽  
Catering Industry ◽  
The Government ◽  
The Impact

The study was conducted to establish the impact of financial management practices on the perdomance of SMEs in Zimbabwe. The problem statement identified lack of business growth of SMEs. The objectives of the study were to establish the impact of financial management  practices on the sustainable growth of SMEs. The study was based on a sample of 101 SMEs from the Catering Industry that were selected through random sampling. Data analysis was done through SPSS version 2.2. The findings revealed that SMEs used mostly four financial management practices: capital budgeting, working capital management, Capital structure, and financial reporting analysis. The challenges faced by SMEs in implementing prudent financial management practices were mainly poor management skills, lack of business registration and lack of financial literacy skills. The results of the study implied that most challenges faced by SMEs were internally localised. The study recommended a model for growth of SMEs in which the government was the major supporter of SMES through financial literacy training and provision of financial support. SMEs were recommended to use equitable financial management practices.

scholarly journals Financial Management Practices, Firm Growth and Profitability of Small and Medium Scale Enterprises (SMEs)

2018 ◽  
Vol 10 (3) ◽  
pp. 25-37
Author(s):  
Alhassan Musah ◽  
Erasmus Dodzi Gakpetor ◽  
Portia Pomaa
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Management Practices ◽  
Pearson Correlation ◽  
Accounting Information ◽  
Capital Budgeting ◽  
Working Capital Management ◽  
Reporting Practices ◽  
Fixed Assets ◽  
Pearson Correlation Analysis

The study examined financial management practices using four components: working capital management practices, capital structure management, accounting information and financial reporting practice, and the use of capital budgeting techniques and fixed assets management. Performance of SMEs was examined from the context of profitability measured by Return on Assets and of growth. The study sampled 100 SMEs from Accra with data collected through the administration of a questionnaire. Data were analysed using descriptive statistics and Pearson correlation analysis. The results of the descriptive statistics revealed that working capital management practices had the highest mean score, followed by accounting information and financial reporting practices, capital structure management and finally, the use of capital budgeting techniques and fixed assets management, in that order. The Pearson correlation analysis showed a positive association between the four components of financial management practices and between SMEs profitability and growth. The results emphasize the need for SMEs to improve on their financial management practice to improve the profitability and growth of these firms. It is recommended that the use of capital budgeting techniques be improved, as this area of financial management, even though it impacts positively on the performance of SMEs had the least score. Most importantly, the managers of SMEs should use discounted cash flow techniques to evaluate investment and projects before committing the resources of the company. SMEs are encouraged to adopt IFRS for SMEs to enhance their financial reporting practices. This will also improve their decision making and access to capital which will allow these SMEs to expand. 

scholarly journals CHALLENGES AND PATHWAYS TO IMPROVE COMPANY’S FINANCIAL MANAGEMENT BY RISK MINIMIZATION

2019 ◽  
Vol 131 (1) ◽  
pp. 49-57
Author(s):  
Olena V. Arefieva ◽  
Iryna M. Miagkyh ◽  
Antonina M. Yashchuk
Keyword(s):  
Risk Management ◽  
Financial Management ◽  
Financial Risk ◽  
Management Practices ◽  
Risk Minimization ◽  
Financial Loss ◽  
Financial Risk Management ◽  
The Government ◽  
Business Entities ◽  
The Impact

This paper seeks to explore the essence of financial activity and its principal objectives in the process of business functioning as well as the effects from changes in the capacity and structure of the company's equity and attracted capital. The study provides insights on the impact of financial management practices on the overall company performance and payment of financial liabilities to the government or other business entities along with identifying the key problems and barriers hindering successful development of modern enterprises. The nature of financial risk arising in the process of financial activities or financial transactions has been revealed. It is argued that the given classification of financial risks (systematic (market) / unsystematic (specific) risks) enables to take timely and relevant risk elimination or risk reduction measures, in particular, deploy risk mitigation methods to those risks which cannot be avoided. The purpose of financial risk management is to minimize financial loss. The paper offers an overview of the factors that negatively affect a company’s financial performance and discusses the types of risks that inhibit company’s good performance and further growth. The study findings suggest the priority areas in financial risk management and discuss the risk management strategies by disclosing the types of company financial stabilization mechanisms (operational, tactical and strategic), along with presenting the methods for financial risk minimization as well as a financial toolkit to enhance the company’s risk management policies to prevent possible negative implications.

scholarly journals The Impact of Cash Management Practices toward Financial Performance of Small and Medium Enterprises in Indonesia

2021 ◽  
Vol 1 (1) ◽  
pp. 35-47
Author(s):  
Nuzulia Amini ◽  
Bambang Setiono ◽  
Christian Haposan Pangaribuan ◽  
Elfindah Princes
Keyword(s):  
Regression Analysis ◽  
Financial Performance ◽  
Significant Relationship ◽  
Financial Management ◽  
Management Practices ◽  
Management Practice ◽  
Profit Margin ◽  
Cash Management ◽  
The Government ◽  
The Impact

Objective – The importance of SMEs in Indonesia has been becoming the center of attention for the government to help the national economy grow. However, there are still many problems that hinder the potential of SMEs to develop. One of the problems is financial Management in terms of cash management, which can help SMEs have better Management over cash and better performance. Therefore, this study aims to analyze the current two elements of cash management practice, forecasting (FOR) and cash mobilization (CML) done by SMEs in Indonesia and its impact on Return on Assets (ROA) and Gross Profit Margin (GPM) as the financial performance measurements. Methodology – The research uses a quantitative approach from 90 SMEs in Java and Bali islands from April until July 2018. The data were analyzed descriptively using a 4-point scale questionnaire.  A regression analysis was added to find out significant relationships between the variables. Findings – The research found that SMEs owners/managers often do forecasting and rarely do cash mobilization practices. The regression analysis shows a significant relationship between cash management practices and ROA but a non-significant relationship between cash management practices and Gross Profit Margin (GPM). Novelty – This research provides an insight of how cash management practices influence the financial performance in the context of SMEs.

Unfunded Public Employee Health Care Benefits and GASB No. 45

2007 ◽  
Vol 21 (3) ◽  
pp. 245-263 ◽  
Author(s):  
Elizabeth K. Keating ◽  
Eric S. Berman
Keyword(s):  
Health Care ◽  
Financial Reporting ◽  
Full Range ◽  
Financial Reports ◽  
Employment Benefits ◽  
Care Plans ◽  
Advantages And Disadvantages ◽  
Government Accounting ◽  
The Government ◽  
The Impact

The Government Accounting Standards Board (GASB) recently released Statement No. 45, Accounting and Financial Reporting by Employers for Post-Employment Benefits Other Than Pensions and its companion Statement No. 43 for pooled stand-alone health care plans, which will profoundly affect American governmental finance. The goal of this article is to encourage governments to consider carefully a full range of options in funding and restructuring other post-employment benefits (OPEB). This article will review Statement No. 45's potential impact on governments and review existing disclosures in financial reports as well as bond offering statements. The article will discuss the statement's impact on budgets and governmental operations, including collective bargaining. Funding options under Statement No. 45 will be detailed, including the advantages and disadvantages of irrevocable trusts and OPEB bonds. The article will also discuss the impact of Medicare Part D subsidies received by governments, as well as the bond rating implications of policy decisions surrounding OPEB. As the largest government entities are just now implementing GASB Statement No. 45, estimates of the magnitude of unfunded OPEB liabilities are limited as are the strategies likely to be adopted to cover these obligations. This article offers a summary of the unfunded OPEB liabilities reported by states and major cities and suggests some measures for assessing the ability of these entities to address these costs.

Struggling to make ends meet: can consumer financial behaviors improve?

2021 ◽  
Vol ahead-of-print (ahead-of-print) ◽  
Author(s):  
Lisa K. Meneau ◽  
Janakiraman Moorthy
Keyword(s):  
Financial Literacy ◽  
Financial Management ◽  
Group Analysis ◽  
Self Control ◽  
Thinking Styles ◽  
Financial Health ◽  
Content Type ◽  
Financial Behaviors ◽  
Financial Products ◽  
The Impact

PurposeThe purpose of the study is to examine the following two research objectives. The first was to examine the predictive relationships that consumer characteristics of financial literacy, thinking styles and self-control have with a consumer's financial behaviors. The second goal was to ascertain financial management products' ability to aid those consumers who need it the most by weakening the predictive effects of consumer traits on financial behaviors.Design/methodology/approachThe study employed a web-based survey to gather information. The measurement and structural models were analyzed using generalized structured component analysis (GSCA), a component-based structural equation model. The mediation effect of self-control is assessed using the GSCA. The conditional mediation of demographic variables and use of personal financial management products are evaluated using multi-group analysis (MGA) in GSCA.FindingsAntecedents, financial literacy, thinking styles and self-control consumer characteristics are predictors of financial behaviors. However, self-control plays a more prominent role as a mediator between the other variables, strengthening the overall relationship. Also, financial products can have a beneficial moderation effect assisting those consumers who need them the most.Practical implicationsThese insights help in creating target specific financial literacy strategies to influence consumers' financial behaviors. Also, there is a need to develop mechanisms to influence a consumer's self-control and thinking styles to improve financial behavior. In conjunction with other initiatives, the impact of financial literacy has a greater effect on financial behaviors. Further, the insights assist financial institutions and financial technology firms in offering and creating products to help customers make better financial decisions and improve their financial behaviors.Social implicationsThe research addressed a significant global issue – consumer financial health. The Great Recession and the COVID-19 recession highlight the need to focus on the consumer and efforts to improve their financial health.Originality/valueThis research highlighted the mediating role of self-control and suggested that existing and future financial products can positively influence consumer behavior drivers.

scholarly journals Impact of working capital management on profitability: Evidence from Pakistan oil sector

2015 ◽  
Vol 1 (1) ◽  
pp. 286
Author(s):  
M.Yousaf Raza ◽  
Muhammad Bashir ◽  
Khalid Latif ◽  
Touqeer Sultan Shah ◽  
Mushtaq Ahmed
Keyword(s):  
Financial Management ◽  
Capital Budgeting ◽  
Capital Management ◽  
Working Capital ◽  
Working Capital Management ◽  
Operating Profit ◽  
Work In Process ◽  
Fixed Assets ◽  
Oil Sector ◽  
The Impact

This study explores the impact of working capital management on the profitability of the firms in the oil sector of Pakistan. For the purpose of testing this relationship data from the annual reports of the sample companies is used from the period 2006 to 2010. Cash conversion cycles (CCC), average receivable, Average inventory, average payable, and current ratio are used as a measure of working capital management, while gross operating profit is used as a measure of profitability of the firm. There are three major issues in financial management that are capital budgeting, capital structure, and working capital management. So working capital management is one of the three major issues in financial management. A commercial firm consists of two types of assets, which are fixed assets and current assets. Current assets of a firm consist of cash, bank balance, account receivable, raw material, work in process, and finished goods. While fixed assets of the business require capital expenditure and these are used in increasing the production of the business, the Current assets are used in utilizing the fixed assets in day to day transactions.  Hence Current assets are regarded as lifeblood for any business firm, the play vital role in the daily operations of the business. Current assets and current liabilities regarded as are very important component of total assets and they need to be carefully managed for the long term success of the business. In this paper working capital management provide us profit by using average payable and gross operating profit but other variables in hypothesis shows negative relationships with each other.

scholarly journals Influence of the Quality of Accrual Financial Report Information with the Roles of Accounting Information System as an Intervening Factor

2017 ◽  
Vol 8 (2) ◽  
pp. 84
Author(s):  
Dyah Purwanti ◽  
Ghulbudin Isham Natser
Keyword(s):  
Information System ◽  
Human Resources ◽  
Financial Reporting ◽  
Internal Control ◽  
Accounting Information ◽  
Primary Data ◽  
Accounting Information System ◽  
The Government ◽  
The Impact

<p>This study aims to find empirical evidence about the role of accounting information system (AIS) as intervening factors that affect the quality of financial reporting information of the government. This study uses a questionnaire that primary data collected from respondents, namely employees of the accounting department of the government units, especially a partner institution in the State Treasury Office (KPPN) 2 Jakarta. Data processing is performed by the method of partial least squares (PLS). The results of this study are the accounting information system has significantly the impact on the quality of government financial reporting information. While the capacity factor of human resources, control data input and application of Government Accounting Standards (SAP) have a significant direct effect on the AIS, is larger when compared to a direct influence on the quality of financial reporting information. Other factors, organizational commitment and internal control system has a significant influence either directly or indirectly on the quality of financial reporting information. The findings of the study are expected to provide input to the government the importance of improving the accounting information system, such as strengthening the capacity of human resources and accounting applications in realizing quality financial information.</p>

scholarly journals Pengelolaan Keuangan Pemerintah di Masa Pandemi Covid 19 (Kasus Pada Pemerintah Provinsi Riau)

2021 ◽  
Vol 4 (1) ◽  
pp. 33-48
Author(s):  
Yesi Mutia Basri ◽  
Gusnardi Gusnardi
Keyword(s):  
Financial Management ◽  
Sampling Technique ◽  
Provincial Government ◽  
Data Display ◽  
Snowball Sampling ◽  
Key Informants ◽  
The Face ◽  
The Government ◽  
The Impact

This study aims to observe how local government financial management is in the face of the Covid-19 Pandemic—in particular, observing how budgeting, administration, and accountability of the Riau Provincial Government regarding the Covid-19 Pandemic. The research method used is a qualitative method with a type of case study. The data collection techniques used in-depth interviews, observation, and documentation. To ensure the validity of the data, triangulation was carried out by carrying out source triangulation and technical triangulation. The informants in this study consisted of key informants, primary informants, and supporting informants. Key informants are the head of the budget, the head of the treasury, and the head of the accounting and reporting sub-section. While the primary informants and supporting informants were selected using the snowball sampling technique. Data analysis was carried out by collecting data, reducing data display data, and making conclusions. The results of the analysis show that the impact of the Covid-19 Pandemic caused the Riau Provincial Government to refocus and reallocate the budget four times. At the administrative and accountability stages, there are problems with recording Unexpected Expenditures, namely the absence of technical guidelines regarding the administration of Unexpected Expenditures, determining spending limits for emergencies and urgency. Another problem is the absence of valid data for the distribution of aid funds for MSMEs affected by Covid-19 as well as valid documents in the recording of grant assistance from third parties. This research contributes to the government in making policies in financial management in a disaster emergency.Keyword: The Covid-19 Pandemic, Financial Management, Refocusing, Reallocation, Administration, Accountability AbstrakPenelitian ini bertujuan untuk mengobservasi bagaimana pengelolaan keuangan Pemerintah Daerah dalam menghadapi Pandemi Covid-19 ini. Secara khusus mengobservasi bagaimana penganggaran, penatausahaan dan pertanggungjawan Pemerintah Provinsi Riau terkait Pandemi Covid-19. Metode penelitian yang digunakan adalah metode kualitatif dengan jenis studi kasus. Teknik pengumpulan data menggunakan teknik wawancara medalam, observasi dan dokumentasi. Untuk meyakinkan keabsahan data, triangilasi dilakukan dengan melaksanakan triangulasi sumber dan triangulasi teknik. Informan dalam penelitian ini terdiri dari informan kunci, informan utama dan informan pendukung. Informan kunci adalah Kabid anggaran, kabid perbendaharaan dan kasubid akuntansi dan pelaporan. Sedangkan informan utama dan informan pendukung dipilih dengan teknik snowball sampling. Analisis data dilakukan  dengan tahap pengumpulan data, reduksi data display data dan melakukan membuat kesimpulan. Hasil analisis menunjukkan bahwa Dampak Pandemi Covid-19 menyebabkan Pemerintah Provinsi Riau melakukan refocusing dan realokasi anggaran sebanyak empat kali pergeseran anggaran. Pada tahap penatausahaan dan pertanggungjawaban terdapat permasalahan pencatatan pada Belanja Tidak Terduga yaitu tidak adanya juknis tentang penatausahaan Belanja Tidak Terduga, penentuan batasan belanja untuk keadaan darurat dan mendesak.  Permasalahan lainnya yaitu tidak  adanya data yang valid untuk penyaluran dana  bantuan bagi UMKM yang terdampak Covid-19 serta dokumen yang valid dalam pencatatan bantuan hibah dari pihak ke tiga. Penelitian ini memberikan kontribusi kepada pemerintah dalam membuat kebijakan dalam pengelolaan keuangan pada keadaan darurat bencana. Kata Kunci :  Pandemi Covid-19, Pengelolaan Keungan, Refocusing, Realokasi, Penatausahaan, Pertanggungjawaban

scholarly journals TINJAUAN IMPLEMENTASI AKUNTANSI PEMERINTAHAN BERBASIS AKRUAL DI INDONESIA

AdBispreneur ◽  
2018 ◽  
Vol 2 (3) ◽  
pp. 217
Author(s):  
Suryanto .
Keyword(s):  
Financial Management ◽  
Government Regulation ◽  
Management Practices ◽  
Accounting Standards ◽  
Accounting System ◽  
Literature Study ◽  
Indonesian Government ◽  
Government Accounting ◽  
Accrual Basis ◽  
The Government

ABSTRACTThe purpose of this study to determine the management of state finances in Indonesia associated with the government accounting system used. This research is a type of research of literature study using a qualitative approach. The data were obtained from various sources of reference, such as journals, expert statements, and media references. The results show that the Indonesian government in its accounting system is still based on Government Regulation No. 24 of 2005 which is the cash base toward accrual (cash toward accrual). However, Due to the growing demands of the community and the encouragement of international institutions to apply the accrual basis, the Indonesian government continues to improve its accounting system. It encouraged the government in 2010 through the Government Accounting Standards Committee to issue accrual based government accounting standards established through Government Regulation No. 71 of 2010 on Government Accounting Standards superseding Government Regulation No. 24 of 2005. The Government of Indonesia has implemented reforms in the field of accounting with the necessity setting up accrual basis accounting. The use of an accrual basis is one of the characteristics of modern financial management practices in the public sector that aims to provide more transparent information. But in reality, the application of accrual-based accounting system is still a lot of constraints on the human resources sector. Keywords : Accrual basis, cash basis, government accounting system  ABSTRAKTujuan penelitian ini untuk mengetahui pengelolaan keuangan negara di Indonesia terkait dengan sistem akuntansi pemerintahan yang digunakan. Penelitian ini merupakan jenis penelitian studi literatur dengan menggunakan pendekatan kualitatif. Data diperoleh dari berbagai sumber referensi baik jurnal, pernyataan para ahli, maupun referensi dari media. Hasil penelitian menunjukkan bahwa pemerintah Indonesia dalam sistem akuntansinya masih berdasarkan Peraturan Pemerintah Nomor 24 Tahun 2005 yaitu basis kas menuju akrual (cash toward accrual). Namun, Karena adanya tuntutan dari masyarakat yang semakin kuat dan adanya dorongan dari lembaga-lembaga internasional untuk menerapkan basis akrual, maka pemerintah Indonesia terus berupaya memperbaiki sistem akuntansinya. Hal tersebut mendorong pemerintah pada tahun 2010, melalui Komite Standar Akuntansi Pemerintahan menerbitkan standar akuntansi pemerintahan berbasis akrual yang ditetapkan melalui Peraturan Pemerintah Nomor 71 tahun 2010 tentang Standar Akuntansi Pemerintahan menggantikan Peraturan Pemerintah Nomor 24 tahun 2005. Pemerintah Indonesia telah melaksanakan reformasi di bidang akuntansi dengan keharusan menerapan akuntansi berbasis akrual. Penggunaan basis akrual merupakan salah satu ciri dari praktik manajemen keuangan modern di sektor publik yang bertujuan untuk memberikan informasi yang lebih transparan. Namun kenyataannya penerapan sistem akuntansi berbasis akrual tersebut masih banyak kendala pada sektor sumber daya manusianya. Kata kunci :  Basis akrual, basis kas, sistem akuntansi pemerintahan

PENERAPAN PSAP NOMOR 07 TENTANG AKUNTANSI ASET TETAP PADA KANTOR KEPOLISIAN RESOR KOTA LUBUKLINGGAU

2021 ◽  
Vol 4 (3) ◽  
pp. 961
Author(s):  
Norman Hadi ◽  
Sriyani Sriyani
Keyword(s):  
Financial Reporting ◽  
Financial Management ◽  
Balance Sheet ◽  
Economic Benefits ◽  
Point Of View ◽  
Police Station ◽  
Straight Line ◽  
Fixed Assets ◽  
The Government

The reform of state financial management in 2003 was aimed at realizing transparent and accountable government financial reporting. Reform of state financial management is the first step in improving the quality of state finances. In the government environment, fixed assets play an important role in government operations and also benefit the community. The problem studied is how the suitability of accounting for fixed assets at the Lubuklinggau Police with PSAP number 07 concerning Accounting for Fixed Assets from the point of view of recognition, measurement, presentation, and disclosure of Fixed Assets in Financial Statements. The research method used is a qualitative method, the method of data collection is carried out by means of observation and interviews with parties related to accounting at the Lubuklinggau Police Station. The results of this study are the Lubuklinggau Police Station has implemented Fixed Asset Accounting in accordance with PSAP 07, namely Assets are recognized when future economic benefits have been obtained and their value can be measured reliably, Fixed Assets are measured at cost, depreciation is carried out using a straight line and presented in Balance sheet according to PSAP 07.

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