Page 27 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
owners, managers, tax authorities and lenders are the
main users.

Olson et al. (2004), found that the number of users of
accounting information in SMEs is increasing to include
venture capitalists and customers in supply-chains.
Wichman (1983) concludes that accounting and
marketing pose major challenges to the management of
SMEs and recommends that managers or owners in
SMEs must learn about accounting or hire experts.
Walhlstedt (1996) believes that conventional accounting
reports play a signicant role in SMEs but argues that
the reports must be adjusted for them to be understood,
proposing the use of the cash basis rather than the
accruals basis.

D. Sanuja (2019) studied the nancial management in
the small-scale industries and found that lack of
nancial management has been limiting the growth of
any enterprise; and at the same time, the utilization of
funds got affected the use of all the other resources. Any
type of entrepreneurial activity concerned with
production, marketing, personnel and the like,
ultimately revolves around the availability of nancial
resources.
Banik, S (2018) studied the nancial management of
MSME and found that growth of the small-scale
enterprises can be determined through maintenance of
proper records of accounts, which provides the basis for
safeguarding and controlling the business properties. It
was found that there are many perceived factors
affecting their adoption of accounting practices and their
effects on their business operations in the area. Among
such factors include lack of adequate training, wilful
misconduct and negligence.