Page 90 - IMDR MSME BOOK 2021

Managing Finance in Micro, Small & Medium Enterprises
highly efcient in their Internal & regulatory Compliance
Management system on the basis of identifying the need
of compliance , documentation required for compliance ,
tracking and evaluation of compliance management.
Conclusion
The expansion and strengthening of the MSME sector is
necessary for the socio-economic development of the
India. The Government has already taken various
measures to ll the gap by offering funds to support the
activities of MSME sector on subsidised terms .The
challenges faced by MSMEs in India are lack of required
skills and education to manage the complexities of
business operations, lack of availability of adequate and
timely credit, High cost of capital ,Inability to meet
collateral requirements, difculty in the procurement of
raw materials at a competitive price, Problems of storage,
designing, packaging and product display, inadequate
infrastructure facilities, complicated taxation system,
lack of managerial support.

As far as nancial management is concerned there is
lack of awareness and understanding about the
technical tools which can be used to manage nance
efciently and effectively.
The study concludes that there is a wide gap between
theory of accounting and nancial management and
actual practices by the MSMEs.
The knowledge and practice of accounting provides a
rational base to nancial decision making and which
helps to achieve the desired revenue. The effective use of
accounting and nancial tools not only helps in maintain
nancial records, it also plays vital role in predicting
future income and cost. It helps in taking calculative
risks and targeting returns.