Financial Management, Crisis, and SME Analysis in Slovakia

This report delves into the critical aspects of financial management within small and medium-sized enterprises (SMEs), particularly in the context of the Slovakian economy and the impact of financial crises. It begins by emphasizing the importance of financial management and planning for business sustainability and growth, including effective fund allocation and financial decision-making. The report then provides an overview of SMEs in Slovakia, highlighting their significance in the national economy and their vulnerability to economic downturns. A key focus is the role of financial management in helping SMEs navigate challenges such as limited resources and external financial constraints. The report offers practical tips for SMEs to manage finances during a crisis, including cash flow management, financial ratio analysis, and strategic planning. It also includes a case study of a company's financial performance and the application of financial ratios, providing a comprehensive analysis of how SMEs can improve their financial health and resilience in a challenging economic environment. Finally, the report includes an abstract, keywords, and a bibliography.

Contents
1. THE IMPORTANCE OF FINANCIAL MANAGEMENT...................................................................................1
2. SMALL AND MEDIUM SIZED ENTERPRISES AND THEIR IMPORTANCE IN SLOVAK ECONOMICS..............2
3.ROLE OF FINANCIAL MANAGEMENT IN SMALL AND MEDIUM SIZED ENTERPRISES.................................4
4. Tips for small and medium-sized financial management of the financial crisis in Slovakia during
Enterprise use..............................................................................................................................................5
5.CONCLUSION........................................................................................................................................6
6.REFERENCES.........................................................................................................................................7
2. The cash flow statement shows the company's..................................................................................7
PARTS OF THE CASH FLOW STATEMENT..................................................................................................8
CLASSIFICATIONS OF CASH RECEIPTS AND PAYMENTS............................................................................9
Cash from Investing.............................................................................................................................9
Cash from Operations..........................................................................................................................9
Methods of Preparing the Cash Flow Statement.................................................................................9
Direct Method...................................................................................................................................10
Indirect Method.................................................................................................................................10
FINANCING AND INVESTING SECTIONS.................................................................................................10
Cash Flows from Investing.................................................................................................................10
Cash Flows from Financing................................................................................................................11
BIBLIOGRAPHY.......................................................................................................................................11
Compute at least 13 key ratios to enable you to assess the financial performance of Healthy Snack
Corporation. Round all ratios to the nearest 1 decimal based on 360 working days.................................12
1. THE IMPORTANCE OF FINANCIAL MANAGEMENT
The financial industry is the lifeblood of an organization. It is a business concern that needs to be
met. Concerns of each business and economic concern for their smooth running financially and
maintaining an adequate amount to achieve the goals of economic concern must be careful to
maintain business. The financial goals of the economy with the help of effective management
can be achieved. Our situation at any time, financially important from which can not be ignored

First of all, the importance of financial management and financial planning. Financial
management services will help determine the financial needs of the concerns and concerns of
financial planning. Financial planning, business promotion helps to be part of business concerns.
Second, we can learn the proper use of funds. The proper use of funds and the allocation of
economic anxiety helps to improve operational efficiency. When using financial management
programs that are required to provide funds, reduce the city's expenses and the ability to increase
the value of the company, they can prevent a large amount of debt from others.
After that, the importance of financial management, you can learn how to make financial
decisions. Sound financial management for business concerns helps to use financial decisions.
Fear of financial decisions that will affect the entire business cycle. Such as marketing,
production, personnel with various department activities because of direct relationships
Finally, improving profits, the importance of financial management The edge of the greatest
concern of the purely economic worries of the fund depends on the efficient and appropriate use.
Financial management, such as budget control, profit ratio analysis and cost audit, strong
financial control from concerns with the help of devices that help improve profitability positions.
Now, in financial management it is popularly known as the financial position of a business or
corporate finance. Economic concerns or important business sectors of financial management
that cannot work without
Abstract: This article plays an important role for small and medium-sized entrepreneurs with the
size of the company's financial management regarding the effects of the global financial and
economic crisis. Will focus on small and medium-sized enterprises (SMEs) Slovakia after the
global financial and economic crisis. In this article, I focus on defining small and medium
enterprises Various methods have been introduced to improve small and medium-sized
enterprises. Keywords: small and medium enterprises (SMEs), global financial and economic
crisis, financial management.
1. INTRODUCTION
Many of the worst economists in the 1930s since the Great Depression, 2007 to consider the
current financial and economic crisis. This economic crisis began as a sub-prime US crisis. But

quickly, after the global financial crisis, non-financial companies in the economic environment
have a negative impact, becoming a global economic crisis. Many organizations in a changing
environment to consider their position and to survive the crisis will be forced to accept unpopular
measures. The dilemma for products and services, lower prices, pressure on lower sales demand
to reduce unemployment and an increase in external funding is a proposal that limits small and
medium-sized companies to manage to survive that time. Importantly, this took the process to
use small and medium-sized companies than large companies that were more flexible and able to
respond faster. But their needs, products / services, logistics networks and changes in the
financial sector and are more important to suffer from the economic crisis faster than large
businesses In order to survive the environment crisis of small and medium-sized business
management, in order to overcome the negative changes, flexibility and innovation, new
conditions must be ready to adjust..
2. SMALL AND MEDIUM SIZED ENTERPRISES AND THEIR
IMPORTANCE IN SLOVAK ECONOMICS
Small and medium-sized organizations in different meanings in different countries. A number of
small and medium general entrepreneurs such as income, the number of employees with the help
of the owner's equity) are set up in Slovakia, small and medium-sized enterprises that employ
less than 250 people, self-medication operators, instructions indicate efficiency January 1, 2005
2003/361 / EC and the rate does not exceed 50 million. Annual operating funds by the European
Commission are accredited for small and medium-sized organizations and the definition of the
euro. D but not more than EUR 43 million annual balance sheet total. In the category of small
businesses that have annual or annual operating cash, a balance sheet of 10 million euros less
than 50 people and has been designated as self-employed this drug And small establishments that
have annual or annual operating cash balance, the total balance sheet (see tab. 1) 2 million euros
less than 10 people and will be defined as self-employment activities, administrative work

Tab. 1. SME definition per European Comission
Small and medium-sized enterprises compete with developed countries and the private sector
that play an important role in a market economy. Their economic growth and technological
innovation and new products are considered to be an important source of engines. They do
marketing to increase competitiveness and efficiency, and in line with the needs of new
customers that will facilitate changes in work in the operation of new equipment and techniques
more often than large companies that are resilient Small and medium enterprises are the largest
providers of jobs and economic roles in the region and inequality in removing the main role.
The influence and importance of small and medium-sized enterprises that the Slovak economy is
too vague. The Slovakian economy, constituting 99.9% of households, is a small and medium-
sized business that takes almost 70% of its main tasks. Small and most medium-sized enterprises
(13 011) and retail and service industries Participating in 432 (77)
Construction (9 723). They are important in the production of GDP, accounting for 43.1% of
Slovakia's exports contribute 38.7% (Http://www.nadsme.sk/files/Stav_MSP_2009_1. pdf)
Small and medium-sized enterprises have an important role, as shown in Figure 1..
3.ROLE OF FINANCIAL MANAGEMENT IN SMALL AND
MEDIUM SIZED ENTERPRISES
Because the size of small and medium enterprises is higher than large companies are considered
dangerous The size of the inherent weaknesses that lack the ability to fund themselves in general

because the base is a small client Therefore, the lack of collateral or credit history or leaving businesses
and small and medium enterprises more often than large companies are often bankrupt. Small and
medium-sized businesses that will help survive in a highly competitive, ever-changing environment are
key tools for effective financial management. Overall, the company's management into the financial
process subsystem (Financial planning, the financial decision-making process of the financial team and
financial analysis and public awareness) in the management and control of shareholders, the value
attached to the focus on the goals of financial management Can be set up. Financial management in the
main work needed to efficiently allocate financial and get money for The plan, profit sharing, the
Company's financial management for companies of any size and type is important (Fetisovova et al.,
2004), while the owners of small and medium enterprises is crucial, especially. Based on our research,
we have more than half of small and medium-sized entrepreneurs on both sides of the crisis having a
negative impact on the discovery of most companies, as their movements have a major influence. In the
crisis at the beginning of 2009, more than 50% of companies felt the impact, felt their limited income
and external financial liabilities decreased significantly, especially at Especially in the financial notes.
Some people feel pressure from falling prices. The problem with debt repayment from investing in
the lower back. Some companies have become insolvent and the current shares of account
owners or credit cards are used for this solution to increase It licensed a small new company
and the bank to make loans has become very difficult. EXIM Bank and through the micro
credit program SZRB (Slovakia guarantee and development), the only restriction was able to
get money. Grants for small and medium-sized enterprises..
4. Tips for small and medium-sized financial management
of the financial crisis in Slovakia during Enterprise use
In the current economic literature on the financial crisis and the global economy, the
financial management of companies in best practices in discussions from our research
we have for small and medium-sized entrepreneurs received. Under financial
management tips
1. Small and medium-sized during the long-term crisis that will fill the aircraft and the
strategy and the shareholders of the company have the appropriate value attached to the
company, focusing on the main goal is important for the Ministry of Finance to
implement the strategy Created corporate strategy, economy, marketing and related
activities for choosing a company, therefore determining the scope and direction of the
financial strategy project Many are working strategies. This is an organization's strategy

for supporting and making strategic financial decisions. Increasing finances helps to
evaluate strategic options. Existing operations will help monitor and execute decisions.
these The operational decisions of the said appraisal and the company audit on cash
flow are expected to be important for the increase of
2. Dealing with the financial and economic crisis to be completely ready to small and
medium-sized enterprises to monitor the economic environment and major changes in
their environment, the need to recognize warning signs Comments on various rating
institutions and foreign banks and predictions, even if they have to pay attention to the
financial health of their suppliers, diversification of customer needs, analysis,
examination of the results. Important in the planning process, needs to be converted into
variables
3. Small and medium-sized cash flow management should be more focused in order to
survive the crisis, small and medium-sized enterprises will address the dissolved
materials and the need to have sufficient liquidity, this is a special collection. Of
agreements with customers, suppliers and assessing credit card businesses and checking
the financial health of customers, working with city management of rehabilitation can
be done by debt repayment The Slovakian government, which helps small and medium
enterprises to overcome the financial crisis, take measures to increase production
efficiency and reduce its impact on the ecosystem with the goal of achieving efficiency.
usage Innovative energy and higher transfer technology and support for small and
medium-sized enterprises, a financial program that has Small and medium-sized
lockout "In competition and economic growth through a program known as" operating
or requesting financial assistance through a program sponsored by the European Union;
For example, in the competition and innovation framework program or for research and
technology development in the seventh frame project (*** 2011) 1. The majority of
small and medium-sized entrepreneurs and the performance of their companies and to
assess financial status and use financial ratios. This is a ratio helping to analyze current
and past conditions and planning for the future. Is a starting point in order to anticipate
the future growth of non-financial indicators for auditing and analysis; For example,
customer satisfaction, employee satisfaction, retention of high quality staff and
innovation (Cerna 2010). These are the indicators and business advantages by pointing

to new opportunities in the development of the company. Can help with long-term
predictions
The company will have to face a 2% drop in sales, access to liquidity, credit and others
during the financial crisis and are struggling for significant survival so this cost and
limit analysis will increase production value by Methods, unnecessary steps of disposal.
At the same time, high-quality products and services during the crisis, it is very
important to restrain this factor If this process is suffering, he will be separated from the
company. Successful progress towards product quality standards for quality
management systems, using standards and attitudes to meet customer needs and the
economy, there are ways to help No The competitiveness of entrepreneurs (Kucerova,
2008) and medium-sized enterprises and review distribution agreements, pricing,
payment and distribution Discharge can negotiate conditions, save materials and
products to reduce the number of their employees better, better working capital
management and strict..
5.CONCLUSION
Finally, the end of the year for Gross Domestic Product (GDP) in the Slovak Republic increased by
4.5%. This depends on the 2011 development. There is also a positive development in this year's GDP
forecast and There are still some other symptoms that the global financial and economic crisis has no
hope of withdrawing. Small and medium-sized enterprises that have survived their pre-crisis market
conditions, you need to recover and re-effectiveness The business environment can help manage the
changes in current and future tools that need to be used by the system. Our hope for paper will be useful
in this process..
6.REFERENCES
Cerna, L. (2010). Business etiquette and its implementation in industrial enterprises in
Slovak Republic, AlumniPress, ISBN 978-80-8096-110-7, Trnava
Fetisovova, E. et al. (2004). Finance of small and medium-sized enterprises, IURA EDITION,
ISBN 80-89047-87-4,

Bratislava
Kucerova, M. (2008). Improvement in Quality management system, In: Intercathedra, No 24.
Poznan, ISSN 1640-3622, pp 49-50, 2008
*** (2010) http://www.nadsme.sk/files/Stav_MSP_2009_1.pdf,
accessed on 2010-12-14
*** (2011) http://www.euractiv.sk/podnikanie-v-eu/zoznam liniek/kriza-a-male-a-stredne-
podniky-000237, accessed on 2011-01-21
2. The cash flow statement shows the company's
The cash flow statement shows the company's source of cash and cash used for a specified period
of time regarding financial reporting methods. As the value of the above non-cash items are not
included This is the company's short-term and long-term potential, especially the ability to pay
bills and determine useful dates. Cash flow management for businesses and small businesses,
especially businesses, is one of the most important. Analysts at least a quarter of every day
recommend that you study cash flow statements. Therefore, during the specified period, it is
recorded in the operations of the company in a similar cash flow statement in the income
statement. The value of some non-cash items such as accounts in the income statement, cash
flow statements, both spaces have disappeared. . All of this can then be removed and the
company that issued today shows how much money actually happened. The company's cash flow
statement with cash flow and flow management shows how they operate. This is the company's
ability to pay off debt and financial growth will provide a sharp image. If it doesn't have enough
money on hand to pay the expenses that will go under, in accordance with the accounting
standards that are perfectly possible for the company to show profits. Known as outstanding
debt, with the amount of cash generated comparing "The ratio of operating cash flow generated"
to repay the loan and its interest, indicating the company's ability to provide services. A slight
decrease in the company's cash flow for the quarter that will make the loan repayments, its
ability to be affected, even if the company's net income is minimal, strengthening the level of
cash flow and in a position with Higher risk Earnings reports can be presented in contrast to

many ways in which the company and the cash situation are few. We can manage. Despite the
implicit fraud, including the cash flow statement, telling the whole story, the company's cash?
Analysts in order to understand the overall health of the company's cash flow statements will be
closely monitored..
PARTS OF THE CASH FLOW STATEMENT
Statements of cash flows in operations, investments or financing their activities in accordance
with whether the diaspora distinguish cash and payments The cash flow statements in this same
business are divided into sections by three working areas:
• Expenses - day-to-day operations of cash generated from business operations
• Cash used for investing in assets in other businesses, equipment, or other funds from long-term
asset sales - cash from investing
• Finance - cash from funds, loans, and giving, receiving money or receiving This part also
includes joint expenses. (Although sometimes he listed below the operating cash.)
• Increased cash in cash from previous years - net increase or decrease is generally written and
lower cash is usually written in parentheses.
Although cash flow statements may vary slightly, they all present data in the four sections listed
here.
CLASSIFICATIONS OF CASH RECEIPTS AND
PAYMENTS
Money from the treasury
New companies came up with ideas. A man of a person or group that will freeze the seats of the
company. At first, the owner of the money By owner or corrosion "The funded owner is a new
company that has been formed." What kind of money for the company, general financial
activities classified as equivalent or long-term liabilities and financial activities as separate items
in the balance sheet will be used will
.

Cash from Investing
Business owners, equipment, or managers must run their business or use the money to buy other
assets. In other words, they invest. Property, plant and equipment and purchase of other
production assets which are classified as investment activities Sometimes other businesses will
lend money to companies that don't have enough of their own cash. This is classified as an
investment activity. In general, long-term assets in the balance sheets are separate items, will be
classified as investment activities will be candidates.
Cash from Operations
Now the company can start doing business. This purchase and operation, the money to buy the
necessary equipment and other assets. This trade, rent or sale of services and supplies, business
expenses and other taxes to pay for everything starts. The workplace for the company that was
established and the associated cash flows will be classified as operating activities. Movement
regarding the statement in the income statement, the company's cash flow, in general, the part of
the applicant in operation.
Methods of Preparing the Cash Flow Statement
Changes in the financial status of the cash flow statements of November 1987, the Financial
Accounting Standards Board (FASB), rather than the state, requires businesses to use "Financial
Accounting Standards Statements" This is a direct and indirect statement. FASB encourages, but
does not need to use direct methods for reporting methods and preparing the next two methods.
Day-to-day operations of investments and financial sector involvement report both methods
regardless of the proposed methods being presented in the same way.
Direct Method
In addition, the operating method of the income statement is called the direct cash receipt and
payment method of the main level reports. Statement of the cash flow from the use of the method
of preparing beef Ngwe to calculate the money spent, and then began to record received
Therefore, despite the net profit, the impact on money expenses that are not received or
exempted because the value is zero..

Indirect Method
This method is the only way to reconcile the net operating income and focus on the flow of Tin
Ngwe. One default with net income is inserted again using this method and then to calculate the
change in Balance sheet items The most direct method to produce the same result is Ngwe flow.
Therefore, the value is a negative expense. Net income beginning with the indirect method is
equal to added value. However, whether it is a direct or indirect method, the cash flow statement
from operating activities Ngwe (three) at the end of the operating section in the header. This is
the most important thing to the cash flow of the advertising statement. The company will
maintain its business activities to generate enough cash flow from operations. The company will
not need to receive additional investment funds or borrow to survive the company. In the long-
term existence is in danger.
.
FINANCING AND INVESTING SECTIONS
The cash flows, in and out, resulting from financing and investing activities are listed in the same
way whether the direct or indirect method of presentation is employed.
Cash Flows from Investing
The cash flow statements shown below in respect of the main lines of this product are:
• Capital Expenses This is the amount of land, buildings and equipment and products that have a
long life means spending money. When increasing investment expenditure, it often means that
the company is expanding.
• Investment profits. Companies often spend some of their excess cash. Savings accounts or
money market funds can be invested in an effort to get better returns. This company has made
about showing that this investment figure is lost or lost.
• Business acquisition or sales These numbers are from the purchase or sale of the subsidiary's
business and sometimes more. Here, the company is made from the operating activities section
of cash flow, including the money that will appear if.
Cash Flows from Financing

To pay the company $ in figures released during the time period: This cash flow statement
includes things such as main line items
• Common shares issued / road brokers are not financial companies, the activities of this new
show, the number of companies growing rapidly Usually a new stock will be blended and the
value of the current stock This practice But since the company's cash for expansion, the company
set up its own shares to repurchase will be in position, and when this will help increase the value
of existing shares
• Debt / Debt Settlement of the amount of the securities issuing company or borrowing money to
repay the loan before you the securities company to raise funds in the stock, there are ways to
choose the main issues.Cash flow statements with most companies, all prepared by publicly
traded companies, need to be submitted with the Securities and Exchange Commission as the
latest of the three basic financial statements. There are often different forms and other statements
of income statements or balance sheets for the majority of components contained in the report.
However, the company's income, regardless of the manufacturer, a woman in her will do to meet
short-term obligations to management methods and investors, savings and loans, and present the
views of those Company distributor.
.
BIBLIOGRAPHY
Brahmasrene, Tantatape, and C. David Strupeck, Donna Whitten. "Examining Preferences in
Cash Flow Statement Format." The CPA Journal. October 2004.
Hey-Cunningham, David. Financial Statements Demystified. Allen & Unwin, 2002.
O'Connor, Tricia. "The Formula for Determini.ng Cash Flow." Denver Business Journal. 2 June
2000.
Taulli, Tom. The Edgar Online Guide to Decoding Financial Statements. J. Ross Publishing,
2004.
"Ten Ways to Improve Small Business Cash Flow." Journal of Accountancy. March 2000.