Ethiopia has been one of Africa’s fastest growing economies over thernlast two decades. Micro and small enterprises (MSEs) play an important role inrnthe economic growth in Ethiopia. SMEs contribute to economic development inrnvarious ways: by creating employment for rural and urban growing labour force,rnproviding desirable sustainability and innovation in the economy as a whole.rnThis study was done to determine the extent of financial management practicesrnin Small and Medium Enterprises (SMEs) in Addis Ababa city administration, Thernobjectives of the study were; to determine the extent of financial managementrnemployed by MSEs as to these dimensions: This study focuses on five practicesrnof financial management: accounting information system, working capitalrnmanagement, financial reporting and analysis, fixed asset management, financialrnplanning.