Despite the effort made by the government of Uganda to support the growth of SMEs by creating enabling environment through appropriate legal and regulatory procedures, and in spite the fact that the Government has recently made micro-credit accessible to SMEs, success in this sector is still unconvincing. One of the major areas of concern is poor management of business finances.And because of this, most Entrepreneurs have failed to sustain and expand their businesses. Cases of cash flow crunches, wasting money, double payments, and missing out on new opportunities to expand are common indicators poor management of finances. For the success of any SME, effective and efficient management of business finances is paramount.