Principles Of Financial Management Research Articles

Increasing Product Distribution Capacity and Financial Management Of “Kampung” Chicken Egg Business at Lau Dendang Traditional Chicken Farm

There are several types of chicken farms with various production models. In the production process, partners start by purchasing chicken seeds and providing vitamins and then raising them by providing natural animal feed in the form of vegetables and fruits from traditional markets, so they do not use manufactured animal feed such as pellets and the like. Then, the enlargement process takes 3-5 months. In the husbandry principle, partners use the cage-free principle. However, in the production process, partners still use natural equipment due to limited capital. In addition, partners' knowledge of product marketing management is still minimal, even though the concept of organic production can be a potential brand that differentiates compared to competing products. On the financial management side, the business still combines personal and business finances, there is no clear cash flow report periodically. This causes the business to have no clear profit/loss and relatively slow to develop. Through this program, the implementation team offered solutions in the form of providing machines to facilitate the distribution of goods and increase the capacity of livestock land, providing branding concepts through brands and counseling on simple business financial management principles. The targeted outputs are increased egg production capacity, reduced feed distribution and transportation costs, added value in the form of brands, and simple business financial reports.

Strategi Pengelolaan Kekayaan Menggunakan Wealth Management Dalam Upaya Mengembangkan Sarana Dan Prasarana Di Pondok Pesantren Sunan Drajat

This research was conducted against the background of important asset and wealth management in educational institutions, especially Islamic educational institutions. This is because many Islamic educational institutions do not know the potential of their assets. Asset management using wealth management with Robert's quadrant cashflow approach. T. Kiyosaki can be used as a reference in mapping the assets owned by Islamic educational institutions, to then be developed and can have an impact on aspects of education support, one of which is wealth management facilities and infrastructure conducted in sunan drajat boarding school is done with the aim that the foundation can meet the needs independently without depending on other parties, especially in the development of educational facilities and infrastructure. This study includes qualitative research. Data is collected through interviews, documentation and observations. The results of the study showed that: 1) Wealth management, especially finance is carried out with a closed-transparent principle, with the division between educational financial institutions (BKK) and business financial institutions (Perkom) while holding the concept of financial management and financial management principles. 2) Wealth management conducted in sunan drajat boarding school using cashflow quadrant submitted by Robert T. Kyoosakai that has been modified in accordance with the educational environment, shows that Sunan Drajat boarding school is close to financial freedom in the management of his wealth. 3) The impact of Wealth Management in the development of educational facilities and infrastructure in Pondok Pesantren Sunan Drajat, among others, the first, the completeness of educational facilities and infrastructure. Secondly the maintenance of educational facilities and infrastructure and third, the effective use of educational facilities and infrastructure

Analysis of Operational Assistance School Fund Management

This study aims to analyze the application of the principles of the School Expenditure Management Budget Plan (RAPBS) in improving the quality of education at SMP Negeri 6 Tolangohula. This study uses 5 types of principles of financial management of BOS funds according to Ministerial Regulation No. 6 of 2021. This type of research is descriptive qualitative research. The method used in this research is observation, interview, and documentation.The results of this study are SMP Negeri 6 Tolangohula has implemented 5 principles of financial management of BOS funds properly, in accordance with technical guidelines and legislation on BOS funds, both physically and mentally. Flexibility, Effectiveness, Efficient, Accountability, and Transparency.

THE MANAGEMENT ASPECT OF TRAINING FUTURE HEADS OF EDUCATIONAL INSTITUTIONS FOR ECONOMIC ACTIVITY

The purpose of the article is to elucidate the training of future heads of education institutions for economic activity in the modern context; cover the management aspect and the results of an experimental test on the readiness of master’s students, specialty 073 Management (Educational institution management), for economic activity. A scholarly discussion on the problem of training future heads of education institutions for economic activity is presented. The authors describe the essence of the management aspect of training concerned. It is determined the levels (high, sufficient, average, low), structure, and criteria of the readiness of future heads of educational institutions for economic activity: motivational, cognitive, activity, and reflective. The foreign experience in training education managers for economic activity is considered. The requirements for training future heads of educational institutions for economic activity in Ukrainian universities are analyzed. The authors clarify the peculiarities of teaching the following disciplines of economics to master’s students, specialty 073 Management (Educational institution management): “Management of financial and economic activity”, “Legal and financial-economic fundamentals of educational institution management”, and “Educational fundraising”. It is identified core theoretical knowledge and practical skills that a graduate of the specialty 073 Management (Educational institution management) must possess. Emphasis is placed on the understanding of the principles of financial management of an educational institution; accounting organization as a separate area of an educational institution; the economic essence of salaries in educational institutions and accounting tasks; financial management of an educational institution, etc. Results. The authors have developed components of educational institution management amidst the educational system’s modernization and economic progress of the state, as well as the main ways to train future managers of educational institutions for economic activity. The results of an experimental test on the readiness of future managers of educational institutions for economic activity are presented: in the process of professional training, the number of students with a high level of EA readiness increased by 22.2%, the low-level indicator significantly decreased – by 18.4%, and the indicator of a sufficient level increased by 14.2%. This is also confirmed by qualitative changes in the readiness of future education managers for economic activity.

Optimization of management of financial flows of a group of companies

The main task of financial management in groups of companies is to coordinate financial flows and improve the efficiency of their management. The search and substantiation of economically feasible solutions to these problems is hampered by the presence of many different types of consolidated associations that do not allow a single approach to financial management to be applied. Therefore, the processes of modeling financial flows of groups of companies based on modern principles of financial management are gaining relevance. The purpose of this study is to develop a model for managing the financial flows of a group of companies, taking into account the specifics of its activities within the framework of the formation of an effective financial management system. A systematic approach, theoretical and practical research of specialists in financial management, methods of economic and mathematical modeling are used. The paper substantiates the need to form a single financial center in groups of companies that performs treasury, clearing and credit functions, identifies the features of the implementation of financial functions by a single financial center within the type of a group of companies. Models for managing financial flows of a group of companies are proposed, which are an algorithm for maximizing individual positive synergistic effects of a group of companies that are predicted to be obtained as a result of performing functions assigned to a single financial center. The practical value of the work lies in the possibility of using the presented models for managing financial flows in the activities of Russian groups of companies and integration associations, which contributes to the formation of an effective financial management system. It is concluded that building a model for managing the financial flows of a group of companies involves defining the target function of the activities of the companies that are part of the group, and setting a system of restrictions in which the participants have to work; development of an algorithm for the optimal distribution of financial resources between participants, carrying out mutual settlements and implementing intragroup lending.

Иқтисодий ислоҳотлар шароитида акциядорлик жамиятларида капиталлар таркибини шкллантириш натижалари

In this article, the state of high volatility in the modern financial market emphasizes the need to make effective decisions from the process of private capital and debt capital formation in order to ensure the sustainable development of companies. This alone is the basis for an in-depth analysis of balance sheet data and financial reports of enterprises. We can see that the capital category is correctly defined in the article and the principles of capital optimization based on the principles of financial management are defined.

Implementation of the principles of financial governance in service companies

The principles of financial governance that can be used to guide the design of service organizations are accountability, efficiency, transparency, legitimacy, and inclusiveness (Lockwood, Davidson, Curtis, Stratford, & Griffith, 2010). Financial governance mechanisms are also important for institutions for business continuity (Gennaro & Nietlispach, 2021). This study aims to analyze the principles of financial governance of companies traveling for Hajj and Umrah services. The research uses a qualitative approach with a phenomenological method that describes and gives meaning to the data. Data were obtained through interviews with the president’s director, director of operations, and finance department. Based on the results of data analysis, it shows that the five principles of financial management that become one unit can be implemented in the form of 1) binding and saving independently, guaranteeing the commitment of both parties; 2) determining packages and costs to facilitate Hajj pilgrims with various requests for facilities; 3) pay for departure, meaning that the company only receives payment after confirmation and schedule of departure; 4) bookkeeping is carried out on every financial transaction that has an impact on account changes; and 5) Infaq and empowerment as a form of redistribution of income and community welfare. The implementation of the five principles of financial governance from this study can be adopted for Hajj and Umrah travel agencies, especially in Muslim-majority countries.

Village Fund Management Accountability in Keroit Village, West Motoling District South Minahasa Regency

The problem in this study is the accountability of village fund management in Keroit Village, West Motoling District, South Minahasa Regency. The purpose of this study is to describe and analyze the implementation of the village fund management accountability system in Keroit Village, West Motoling District, South Minahasa Regency. This research method uses a descriptive qualitative approach and in obtaining research data in the form of primary data and secondary data, the researchers use data collection techniques through observation, interviews, and documentation with data collection techniques through data reduction, data presentation, and verification conclusions. The location of this research is in Keroit Village,West Motoling District, South Minahasa Regency. The results of this study indicate that the Accountability of Village Fund Management in Keroit Village by the government has not been implemented by the principles of financial management and related policies, according to the findings in the field by researchers that the Keroit village government is less open in providing information about Keroit village finances to the community and The limited information media available makes many people not aware of what village funds are used for, there is a report on the realization of the APBDes implementation by the village government which turns out that these programs are not visible in the community but have been realized by the government in the form of a report.

LIQUIDITY AND SOLVENCY IN THE CONTEXT OF FINANCIAL MANAGEMENT OF ENTERPRISE ACTIVITIES

The article considers the theory and methods of assessing the liquidity and solvency of the enterprise through the prism of financial management, which results in the interaction of all elements of financial relations of the enterprise, characterized by a system of indicators, reflecting the availability, allocation and use of financial resources. The interpretation of the economic category “liquidity and solvency management” of the enterprise is studied, namely the authors note that this is the process of developing and making effective management decisions to fulfill business obligations in full and on time due to available means of payment to ensuring stable development of the business entity in the current and future period. The purpose and main tasks of liquidity and solvency management of the enterprise are determined. The main stages of the process of liquidity and solvency management of business entities, as well as the main stages of their analysis. The authors noted that the formation of liquidity and solvency management policy should be based on the following basic principles of financial management: systematic, planned, focused, strategic, variability. The content of strategies for financing current assets is singled out and characterized: ideal; aggressive; conservative; compromise. When choosing a strategy for financing current assets, it is necessary to focus on the desired relationship between the level of profitability and the level of risk of loss of solvency of the enterprise, which is estimated by the required amount of working capital. For effective solvency management, it is necessary to determine which activities and which elements of assets or liabilities have contributed to the growth or reduction of cash, current assets, working capital and working capital and to what extent. At the same time, the assessment of the solvency of the enterprise should focus primarily on the study and analysis of the causes of financial difficulties of the enterprise. The authors noted that liquidity and solvency management is an important component of financial management and the implementation of effective liquidity and solvency management is the basis for further development of enterprises, which in turn will affect their investment attractiveness and competitiveness.

Analisis Sistem Pengendalian Intern Pemerintah Dalam Pengelolaan Bantuan Operasional Sekolah

This study aims to analyze the implementation of the government's internal control system in the management of school operational assistance at SDN 060864. The research method is a descriptive type of research with a qualitative approach, namely solving the problem under investigation by describing the state of the institution that is running the government internal control system based on the facts. through interviews and direct observations in the field. The results of this study indicate that SDN 060864 has implemented the five elements of government internal control which include the control environment, risk assessment, control activities, information and communication, and monitoring so that the financial management of school operational assistance funds (BOS) in SDN 060864 can be accounted for in a transparent and transparent manner. accountability in accordance with the principles of financial management according to Law Number 20 of 2003.

Дисконтування дебіторської заборгованості у системі фінансового менеджменту підприємства

Abstract. Introduction. The transformation of the financial management of the enterprise takes place not only under the influence of scientific research and progressive experience, as well as changes in current tax, currency and investment legislation. The change in financial management was influenced by the Order of the Ministry of Finance of Ukraine dated September 16, 2019 № 379, which approved the need to determine the present value of long-term receivables. Purpose. The purpose of the article is to summarize the provisions of current legislation on discounting receivables and to develop of directions ofreforming the financial management of the enterprise in terms of the introduction of mandatory discounting of receivables. Results. The study of discounting receivables in the financial management system of the enterprise involves understanding the discounting of receivables as a process of reducing future cash flows to present value in the context of managing the formation, distribution and use of financial resources and optimize cash flow. The structural and logical scheme of discounting of receivables in the system of financial management of the enterprise is offered. The approaches to determining the discount rate of receivables on the basis of generalization of recommendations of the State Fiscal Service of Ukraine and the Ministry of Finance of Ukraine are generalized. Recommendation letters and news reports of state financial institutions offer a choice of discount rate that provides legitimate company to vary the size of losses from cost reduction and vary the size of the tax difference in determining tax liabilities in calculating income tax in 2019-2020 is given.. Conclusions. Discounting of receivables in the financial management system of the enterprise is proposed to be considered as a holistic system, which is based on the principles of financial management and is designed to organize the interaction of objects and subjects of discounting receivables. Discounting of receivables in the financial management system of the enterprise is proposed to be considered as a set of eight stages.

FEATURES OF ENTERPRISE MANAGEMENT USING SCIENTIFIC METHODS OF INTERNATIONAL MANAGEMENT

Topicality. One of the modern features is the growth of economic interdependence of countries in the context of globalization and diversification of commodity, financial, investment and other markets. This trend determines the specifics and features of the development of foreign economic activity, which plays a crucial role in strengthening international integration processes. In the researched scientific works considerable attention is paid to the organization of foreign economic activity, research of aspects of efficiency of management of foreign economic activity.Aim and tasks. In view of this, the main purpose of the study is to systematize approaches to determining the financial management of foreign economic activity and outlining its own vision for the realities of the domestic economy.Research results. Financial management as a system of principles, means and forms of organization of monetary relations of the enterprise, aimed at managing its financial and economic activities, which include: development and implementation of financial policy of the enterprise; information support; evaluation of investment projects and formation of a "portfolio" of investments; current financial planning and control. Evaluation of investment efficiency is central to the process of justification and selection of possible options for investing in investment projects, and therefore is the key to successful investment activities. Among these tools the author singles out: financial planning of financial flows; purchase and sale of currencies to service various transactions; purchase and sale of shares and other securities on international financial markets; operating with own securities in foreign markets; currency risk management. In the scientific literature we also emphasize the concept of international financial management, which is interpreted as a system of economic decisions arising from the implementation of financial management in the internationalization of economic activity of the firm. In our opinion, the proposed definition is too narrow for the concept of international financial management, but it can be used to define the concept of financial management of foreign economic activity. Thus, the concept of financial management of foreign economic activity combines three categories, namely finance, management and foreign economic activity.Conclusion. Management of investment attractiveness of domestic enterprises is based on the analysis of indicators of financial condition, while effective management of financial activity of the enterprise is provided by realization of the basic principles of financial management as a component of the general management of the enterprise. Our study is determined by sound recommendations and suggestions for improving modern methods and introducing more modern approaches to improving the efficiency of enterprise management in the international arena.

PENGARUH PENERAPAN SISTEM PENGENDALIAN INTERN,PEMAHAMAN STANDAR AKUNTANSI PEMERINTAH,SISTEM INFORMASI AKUNTANSI KEUANGAN DAERAH, DAN PRINSIP PENGELOLAAN KEUANGAN TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH KABUPATEN BADUNG

The Government Regulation regarding Government Accounting Standards states that financial statements are structured reports of financial position and transactions conducted by a reporting entity. The quality of financial reports can be said to be of quality if they can meet the qualitative characteristics of financial statements contained in Government Regulation Number 71 of 2010 concerning Government Accounting Standards, namely: Relevant, Reliable, Comparable, Understandable. Many factors affect the quality of financial reports, this research uses internal control system variables, understanding of government accounting standards, regional financial accounting information systems, and regional financial management.
 The main objective of this research is to find out whether there is an influence from the internal control system, understanding of government accounting standards, regional financial accounting information systems, and regional financial management on the quality of financial reports at 38 OPDs of Badung Regency. The number of samples taken was 114 people, with purposive sampling technique. Data collection was carried out using a questionnaire. The data analysis technique used is multiple linear regression. The results showed that the application of the internal control system, understanding of government accounting standards, regional financial accounting information systems, and financial management principles had a positive effect on the quality of financial reports.

ФИНАНСОВЫЙ МЕНЕДЖМЕНТ В ГОСУДАРСТВЕННОМ СЕКТОРЕ

The article substantiates the relevance of implementing the principles of financial management in the public sector. Based on the analysis of foreign experience, the mechanisms for monitoring and evaluating the quality of financial management of public administration bodies and chief administrators of budget funds are revealed. The expediency of introducing a risk-based methodology in the management of budget resources of the Russian Federation is revealed.

ВПЛИВ НА ЛІКВІДНІСТЬ ГРОШОВИХ ПОТОКІВ УСЕРЕДИНІ БАНКУ

The purpose of the article is to determine an objective approach to the funding of assets from various resources and to assess the impact of cash flows within a bank on its liquidity position. Methods of theoretical generalization and comparison to define an economic substance of the bank asset and liability management, a systematic approach to consider the management of assets and liabilities as interrelated elements of a single system; the method of analysis and synthesis to study liquidity indicators, the method of tabular presentation of data, and the abstract-logical method to substantiate theoretical generalizations and conclusions were used. The issue of maintaining liquidity during the global downturn requires priority attention from the management and analytical service. Central banks of all countries in the world establish, maintain strict control and regulate various indicators of bank liquidity, trying to avoid a banking crisis, since the bankruptcy of one or several banks may lead to destruction of the payment system and cause major problems in the economy. Most modern banks which are focused on long-term activities, when resolving “profitability – liquidity” dilemma, give preference to ensuring a sufficient level of liquidity even in the face of a possible loss of certain income. Despite constant changes and improvements in the liquidity ratio system, modern banks mainly use accounting data for the liquidity ratio calculation disregarding the analysis of the bank’s cash flows which should be carried out in accordance with the basic principles of financial management, the principle of comparing asset-liability maturities and risk levels in particular. Our view is that in analyzing all banking standards and ratios, not only the ratios of various assets and liabilities should be calculated based on the bank’s balance sheet data, but also the sources of formation of certain assets from various resources should be taken into account. In our opinion, it is extremely important to have regard to the situation when the bank’s short-term liabilities (liabilities at call) form its long-term and medium-term requirements. In order to find out an actual situation with the bank’s liquidity position, we should analyze which short-term liabilities were used to form its loan and securities portfolios, as well as other risky and long-term assets. In our opinion, this can be done by making the following adjustments: 1. To reduce the amount of liquid assets by the amount of liabilities at call placed in risky assets. This approach is based on the fact that liabilities at call, which can be withdrawn at any time, are not liquid. In a situation when it is required to make urgent payments, there will be a need for urgent borrowing of additional funds. This may either be difficult to do, or it may be done at an unfavorable interest rate. 2. To increase the amount of short-term liabilities by the amount of that part thereof that was used to form long- and medium-term requirements. This will also reduce the liquidity ratio, but provide the necessary information about its actual level, taking into account the risk formation of the bank’s asset portfolio. An absolute liquidity ratio calculated using the balance sheet data was 63%. When it was adjusted assuming that the bank’s liabilities at call were placed in medium and long-term assets, a decrease by 35% was obtained after reducing the amount of liquid assets, and this figure was decreased by 20% when the amount of short-term liabilities was increased in the calculation. In order to find out an actual situation with the bank’s liquidity position, it is proposed to reduce the amount of liquid assets by the amount of liabilities at call placed in risky assets, or increase the amount of short-term liabilities by the amount of that part thereof that was used to form long- and medium-term requirements.

PENGARUH KOMPETENSI SUMBER DAYA MANUSIA, SISTEM PENGENDALIAN INTERN, DAN PRINSIP PENGELOLAAN KEUANGAN DAERAH TERHADAP KUALITAS LAPORAN KEUANGAN PEMERINTAH DAERAH (Survei Pada Pemerintah Daerah Se-Eks. Karesidenan Surakarta)

This study aims to determine the effect of human resource competencies, internal control systems, and the principles of regional financial management on the quality of local government financial reports. This research was conducted using a survey method of the civil apparatus of the Se-Eks regional government. Surakarta Residency. The type of data used is quantitative data. The data source used is primary data. Data collection techniques with interviews, questionnaires, and documentation. The population in this study were all civil servants of the state government of the Se-Eks. Surakarta Residency. The sample used in this study is the state civil apparatus in the regional government accounting department. Surakarta Residency. The sampling technique is done by using purposive sampling method. This research shows that human resource competencies, internal control systems, and regional financial management principles affect the quality of financial statements.

Pengembangan UKM Aksesoris Mebel dengan Media Pemasaran Teknologi Informasi

The purpose of the community service is to provide training and use IT. Partners in this activity are UKM Cipto Logam. The training stages used are the observation and interview stage, the stage of IT application, the stage of training and mentoring for the use of IT, the stage of collaboration with the government, and the stage of monitoring and evaluation. The result of the activity are : 1) UKM furniture accessories have online marketing media at the level of craftsmen, one of which in the presence of metal copyright sales information system by the craftsmen themselves. 2) UKM furniture accessories have financial management principles in a simple accounting principle so that craftsmen can manage finance neatly.

VILLAGE GOVERNMENT OFFICIALS' UNDERSTANDING OF THE VILLAGE FINANCIAL SYSTEM INDICATORS: A CONFIRMATORY FACTOR ANALYSIS

Purpose of the study: The research inspiration is the implementation of the Village Law and the dispensing of Village Funds in Indonesia. The considerable measure of Village Funds requires progressively complex responsibility. With limited time and insufficient human resources, there is an inclination of the Village Fund to leak caused by errors and irregularities.
 Methodology: We utilize questionnaires, interviews, convenience sampling method, and the confirmatory factor as an analysis tool. There are 312 village officials from 83 villages in Central Java, Indonesia, who participated in this research. This examination scans to investigate the indicators that we can identify with town administration and comprehension of the Village Financial System or Sistem Keuangan Desa (Siskeudes).
 Principal Findings: The results of the confirmatory factor analysis indicate that all indicators are feasible to be used as indicators of measuring all variables. Besides, the Pearson correlation value of all indicators for the total indicators of each variable is significant. It means that the indicators of all constructs in this study are valid and highly correlated.
 Applications of this study: This examination is still all-around ahead of schedule. So far, there has been no exploration in Indonesia identified with village administration. Consequently, in this investigation, it was expected to incorporate variables that could conceivably have an association with village administration generally and Siskeudes explicitly, since the order of Law No. 6 of 2014.
 Novelty/Originality of this study: There are six original, perceptive variables, specifically: Siskeudes understanding, village financial management principles, village fund allocation, village financial administration, village financial reporting and accountability, and village assets report. There are 54 new indicators tested in this research. Further research can utilize the indicators to measures the village government officials' understanding of Siskeudes.

IMPERATIVES OF STRATEGIC FINANCIAL MANAGEMENT OF TERRITORIES IN THE CONDITIONS OF ASYMMETRIC DEVELOPMENT

Introduction. The defined strategic vector of Ukraine in the direction of forming partnership with the European communities requires from the regions the increased attention concerning a substantiation of financial policy through effective management. In the system of effective management, it is important for the financial authority to assess the capacity of the territory, outline the components to the ability to form a revenue base, take into account changes in budget and tax policies and strengthen the motivational component for development and development. Goal. Therefore, special attention needs to be paid to the development of a strategic model of financial management, which will move towards sustainable development, while systematically forming a resource, acting and responding through an efficiency multiplier. Method (methodology). Methods of theoretical generalization, grouping and systematization, logical generalization, graphic, modelling were used in the scientific search of the problem, which allowed to identify the problem and substantiate the results of the research in the system. Results. The strategic principles of financial management of territories in the conditions of budget decentralization are defined, which consist in definition of components of level of efficiency of financial management, construction of algorithm of collaboration in territorial management system and development of system strategy of financial management. Conclusions. A system strategy of financial management in the conditions of decentralization has been formed, which envisages outlining the structural guidelines of budget efficiency, determining the priority tasks of management for the respective region, taking into account its socio-economic specifics. It is substantiated that the strategy works through the components of the level of efficiency of financial management, principles and imperatives of continuous development, which ultimately provides a synergistic effect. It is determined that the symmetry of collaboration, parity, coherence and optimization provide a multiplier of budget efficiency.

Issue of Financial Management Practices among SMMEs: A Case Study of Former Transkei Homelands in Eastern Cape Province South Africa

NOTE: THIS ARTICLE WAS PUBLISHED WITH THE INFORMING SCIENCE INSTITUTE. Aim/Purpose...................................................................................................................................................................................................... The goal of this study was to investigate the financial management practices of SMMEs operating in under developed regions as a challenge facing SMMEs operating in underdeveloped regions using former Transkei Homelands in Eastern Cape Province as a case study. Background......................................................................................................................................................................................................... In South Africa, the works of Cameron and Miller (2008) highlights that South Africa is ranked among top countries in the world with high failure rates of SMMEs during the first year of establishment. This calls for continues research works to identify factors that could be impeding the progress of SMMEs in South Africa. According to Jayansankaran, (1999) proper financial management practices are among the key deciding factors when it comes to the survival of SMMEs. Mostly SMMEs in underdeveloped regions are owned and managed by one person, the lack of financial management competence on the side of the SMMEs owners or managers in turn could bring serious consequences to the financial stability and grow of the SMMEs. It is against this background that this study focuses on financial management practices among SMMEs entrepreneurs operating their businesses in former Transkei Homelands where survival of SMMEs are critical for economic development of the region. Methodology....................................................................................................................................................................................................... The researcher in this study uses both quantitative and purposive sampling approaches to design an exploratory study to sample 68 SMMEs owners/managers based in the various towns of the selected region. Contribution........................................................................................................................................................................................................ This research will add to the growing knowledge about identifying factors that may be impeding survival of SMMEs. Findings .............................................................................................................................................................................................................. The major findings of the study revealed that 95.59% of the owners/managers have no financial management/accounting skills as well as 58.82% of the internal system of recording financial transactions are not audited. Recommendations for Practitioners................................................................................................................................................................. In view of the findings it is recommended that agencies charged with looking after SMMEs provide training in the area of financial management skills for the SMMEs owners/managers. Recommendation for Researchers.................................................................................................................................................................... Future studies can include the other four principles of financial management principles highlighted by Armstrong (2001). Impact on Society............................................................................................................................................................................................... The research will assist to highlight to funders of SMMEs, policy makers and business support agencies the need for educating SMMEs entrepreneurs especially those operating their businesses in underdeveloped regions in proper financial management practices in order to curve the problem of cash flow faced by SMMEs which leads to SMMEs failure. Future Research................................................................................................................................................................................................. Exploring the skills of the SMMEs entrepreneurs’ to prepare, understand and interpretation of financial statements are critical in this context.