INNOVATIVE TOOLS FOR MANAGING FINANCIAL FLOWS OF SMALL AND MEDIUM-SIZED ENTERPRISES

Abstract

Financial management of small and medium-sized enterprises is a set of measures aimed at effective management of financial resources in order to ensure stable functioning and development of the enterprise. The strategy of financial management in conditions of limited resources involves optimizing financial flows, minimizing financial risks and maximizing the value of the enterprise. At the same time, special attention is paid to managing liquidity, solvency and profitability. The article examines the role of small and medium-sized enterprises (SMEs) in the modern economy, in particular the aspects of financial management, which is a key factor in their development, sustainability and competitiveness. The main attention is paid to the analysis of the challenges faced by SMEs in the financial sector, such as limited access to financial resources, insufficient cash flow management, lack of long-term financial planning and poor awareness of modern financial instruments. The emphasis is on the importance of implementing effective financial management methods that contribute to business stability, risk reduction and achievement of financial goals. The authors suggest the use of innovative approaches to management, including automation of financial processes, digital technologies and specialized software, which allow to increase the accuracy and efficiency of financial analysis. In addition, the possibilities of attracting external financing, including loans, grants and investments, as tools for expanding the financial capabilities of SMEs are considered. Considerable attention is paid to risk management issues, in particular strategies for minimizing financial threats through diversification, insurance and the formation of reserves. The article also substantiates the importance of educational initiatives and professional training to improve the financial literacy of owners and managers of small businesses, which contributes to their adaptation to dynamic market conditions. The proposed recommendations can become a practical tool for improving the efficiency of financial management in SMEs and ensuring their sustainable development.