Financial management tools

A research on its role in micro and small business

Abstract

Financial management is an important instrument for the survival of companies, since it enables managers to have a broad knowledge of financial health by providing useful information for adopting strategies and enabling the company to succeed. Despite the importance of such management, many micro and small companies, day to day, have difficulty applying the financial management tool, thereby promoting business development and even the survival of the company in the market. Based on the financial management perspective, this article has as its general objective to identify the financial tools that help in the most appropriate management of micro and small enterprises. In order to reach the proposed objective, a methodology was used as a bibliographical review with a qualitative approach and the type of research was descriptive. The results show that the financial management tools show the current situation of the company and help in decision making. It was verified that the tools most used by the companies are: working capital, cash flow, control of accounts payable and receivable, inventory control, income and financial statement and balance sheet.