Financial Management Guide for Cash Flow and Sustainable Growth in SMEs
Valor Founder Sefa Karaca shared the financial strategies that small and medium-sized enterprises must follow to protect their cash flow and grow.
A large portion of businesses in Türkiye shut down not due to insufficient capital, but because of the inability to manage cash flow correctly. Valor Founder Sefa Karaca explained the fundamental financial steps SMEs must take to achieve sustainable growth.
The Importance of Financial Management
A large proportion of businesses in Türkiye terminate their operations not due to insufficient capital, but because of the inability to manage cash flow correctly. According to experts, proper financial management is of critical importance for businesses to survive.
External CFO Support
External CFO services are provided to SMEs, startups, and family businesses that cannot afford to employ a full-time CFO or want to strengthen their financial management. This service helps companies manage their financial processes in a more planned manner.
Data Discipline and Reliability
The starting point of healthy financial management is data discipline. Bank, cash, sales, purchasing, inventory, payroll, and current account records must be closed regularly, reconciliations must be made, and the personal expenses of partners must be separated from company expenses.
Managing Cash Flow
One of the most common mistakes in SMEs is looking only at sales and period profit. Today's bank balance does not show the future situation; therefore, forward-looking direct cash flow must be prepared regularly.
Profitability and Budget Planning
The total gross profit margin does not show which business makes money for the company, so profitability must be broken down to the product and customer level. Furthermore, the budget should not stay on the shelf all year, but should be compared with actual results every month.