ABSTRACT : Cash flow management is the management of inflows and outflows of cash within the business. However, the deterioration of growth and success of the MSEs have been reported associated with cash flow management issues. This study pursued to analyze the relationship between cash flow management practices and financial performance of MSEs in Calapan City. A quantitative, descriptive-correlational study designed to investigate the potential correlation between cash flow management practices and financial performance. The sample in this study were 187 micro small enterprise owners in the retail sector, currently operating in Calapan City. They were personally interviewed and answered the research instrument through a survey questionnaire. The study reveals that MSEs have a moderate extent of cash flow management practices in terms of planning, monitoring, and controlling. As cash flow planning having slightly higher levels than other cash flow management practices. Moreover, the financial performance of MSEs results in moderate interpretation, indicating they have a moderate level of financial performance. This study utilized Pearson Correlation, a statistical tool to determine the level of association between cash flow management practices and financial performance and it resulted in a significant relationship. This study takes into account that cash flow management practices have an impact on the overall financial performance of the business. In line with this, the importance of effective cash flow management becomes necessary in the operation of MSEs. This study emphasizes that cash flow management practices plays a key driver in the fluctuations in financial performance. However, it is crucial to recognize that there may be external factors beyond the scope of this study that also contribute significantly to financial performance.

KEYWORDS – Cash flow controlling, Cash flow management practices, Cash flow monitoring, Cash flow planning, Financial Performance