This article examines the influence of financial administration and planning on decision making in Small and Medium Enterprises (SMEs) in Quevedo. The main objective is to analyze how effective financial management can contribute to strategic optimization and making sound decisions in this specific business context. To achieve this objective, an exhaustive study was carried out that included a detailed analysis of current financial management practices in a representative sample of SMEs in Quevedo. The research methodology included in-depth interviews with financial managers, analysis of financial statements and surveys of local businesspeople. Statistical tools were implemented to evaluate the relationship between financial management practices and business results. Additionally, external variables, such as the local economic environment and government regulations, will be considered to contextualize the findings. The results revealed a significant positive evaluation between the effective implementation of financial management practices and successful decision making in Quevedo SMEs. Specific areas of improvement and practical recommendations for local business owners are identified, highlighting the importance of long-term planning, efficient resource management and adaptability to changing economic conditions. This study provides a comprehensive perspective on how financial management strategies can be key to the sustainable success of SMEs in specific local environments, offering valuable contributions to both academic literature and sector professionals.