Abstract: The purpose of this study is to find out the effect of accounts receivable management on the financial performance of Small and Medium firms Enterprises in Mogadishu city in Somalia to be outlined by such study the researcher chose The specific objectives of the study to be cash flow management, credit management and credit policy management on financial performance which are the vital element of whole concept of account receivable management. Accounts receivable management on the financial performance in Small and Medium Enterprises (SMEs) are seen important event in the field of financial management lack of empirical evidence from the emerging economies and the absence of examination of the role of account receivable management on SME financial performance was no clear, the research design employs a survey design comprising of quantitative for data collection approach. The target populations had 102 SMEs from three sectors. The study was applied both probability and non-probability sampling procedures obtained a sample of 81 SMEs required for the study based on Slovene formula. The researcher was gather data used a questionnaires because the kind of the study involves variables that not possible to find out other tools questionnaire are seen most important tools for data collection. For explaining theoretical and empirical information on the past literature review on the effect of accounts receivable management on the financial performance of SMEs, the study was three sectors in Mogadishu Somalia. Inferential statistics such as Pearson correlation coefficient and coefficient correlation was used to analyze quantitative data and descriptive statistics are employed for variables of the study.
Keywords: Cash Flow Management, Debt Management, Credit Policy, Inventory Management and Financial Performance.
Title: EFFECT OF ACCOUNTS RECEIVABLES MANAGEMENT ON FINANCIAL PERFORMANCE IN SMALL AND MEDIUM FIRMS IN MOGADISHU-SOMALIA
Author: Adam Osman Dirie, Dr. Caroline Ayuma
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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