I bought myself a 4" round cake pan a while back, and i'ts been great for making little 6"/4" tiered mini cakes for friends - i've gotten pretty good icing with buttercream, but fondant on a cake that small is a nightmare. 

Does anyone have any suggestions for covering smaller sized cakes with fondant? No matter how patient i am i get creases around the bottom.

ATry placing the cake on a cake circle and placing the whole thing on a can (peas, beans, tomatoes, doesn't matter) before placing your fondant on. This allows the fondant to drape a little and is easier to get the creases out. HTH

AUse a small pizza cutter to cut the fondant off instead of a knife :-) smaller cakes are harder to cover for some silly reason. Make sure you are pulling the fondant as you apply the fondant and smoothing with the other hand. If that makes since LOL.