Thesis (MTech (Cost and Management Accounting))--Cape Peninsula University of Technology, 2015. / The broad aim of this research was to investigate the working-capital management practices of Small Medium and Micro Enterprises (SMMEs) in the Cape Metropole. The study was motivated by a lack of research on the workingcapital management practices of SMMEs. Data was collected by means of a questionnaire that comprised closed-ended questions. The findings of the study indicate that most SMMEs manage their cash effectively; however only a minority hold cash for speculative purpose, invest their surplus cash profitably and use computers to manage cash. By contrast, only a minority of the SMMEs sell on credit. Of those that do, only a minority review their credit criteria annually, send reminders to debtors, charge interest for delayed payment, send prompt statements and use computers to manage their receivables. Likewise, only a minority of the SMMEs purchase on credit. Of those that do, a majority pay promptly to take advantage of discounts and thus only a minority settle their accounts on the last date allowed. Interestingly, most of the SMMEs that purchase on credit use computers to manage their payables. Only a minority of the SMMEs perceive a lack of skills, resources, personnel and time as factors that inhibit them from managing their workingcapital effectively. The findings of this study provide invaluable insights on the weaknesses in the working-capital management practices of SMMEs, which could be used to inform future endeavours of the Government when establishing interventions meant to improve the survival rates of these entities. The findings may also assist SMMEs to gauge and review their working management practices, particularly their receivables and payables, with a view to optimising the benefits derived from these components of working-capital.

Cash decision-making involves the simultaneous consideration of financing and investment opportunities over a short-term planning horizon. Decision variables include timing, amount, and source of cash transactions. Decisions can be made regarding these variables such that the worth of the firm (i.e. outstanding investments less financing) at the end of the planning horizon is maximized. Because cash decision-making is often of critical importance to small business, this study focuses directly on the small business environment. Alternatives available to the small business are limited, as are the resources to evaluate alternatives. This stv.dy takes these factors into account by building a cash decision model which is specifically tailored to the small business, and implementing this model on a low-cost, high-powered microcomputer. The model itself is formulated as a linear program with a simple procedure included for handling noncontinuous variables. The model makes use of input generators for ease of implementation. A practical example problem is provided to illustrate the workings of the model. / Master of Science

Decreasing revenues and the public's natural antipathy towards taxes have made cash management crucial to the financial health of any organization. Local government financial executives have become increasingly aware that cash is an asset that must be used wisely, unless it is to become a liability. Thus, there have emerged serious efforts by local government finance executives to maximize the utility of every dollar available to their jurisdictions: first, by influencing the availability of receipts while delaying the outflow of funds; second, by investing available funds in interest yielding securities until the funds are needed to meet legal commitments and obligations. Although this perspective is easily stated, it is common knowledge that local jurisdictions encounter insurmountable obstacles in the effort to maximize the returns on their investments of temporarily idle funds. This study has evaluated local government cash management policies and practices with a view to identifying those factors militating against the efforts to achieve optimum returns on investments. A cash management questionnaire supplemented with very elaborate personal and telephone interviews constituted the diagnostic tool that facilitated the collection of the data necessary to: (a) develop an understanding of contemporary money management policies and practices in local governments; (b) evaluate the effectiveness of these policies and practices; (c) identify and describe the constraints that impede efforts to optimize investment returns in the public sector; and (d) develop strategies that will enable local government finance executives to cope with the identified constraints. The study found that local governments face three kinds of constraints in the attempt to maximize the return on their investments of financial assets. First, there are problems that are internal and peculiar to each local jurisdiction, such as inadequate resources: funds to invest and the skills to search for the right investment instruments under a given set of circumstances; second, there are legal and political constraints imposed by higher governments such as the requirement that public funds can only be invested in certain instruments, and the prescription that local governments do business with specified banks. In some jurisdictions, how much money should be deposited in each bank are also legislated. Third, there are constraints imposed by exogenous factors such as interest rates, minimum investment requirements and the naturation dates of investments. The study also found that local finance executives try to achieve some social responsibility through a careful manipulation of their jurisdiction's cash management techniques. Given these factors, public institutions can not achieve maximum levels of return on investment; they can only achieve satisficing returns. / Ph. D.