Cash Management Practices and Performance of Businesses in Uganda: A Case Study of Northern Division Kasese District.
The study investigated the role of cash management and performance of businesses in Uganda: A case study of the Northern division of Kasese Municipality, Kasese district. The study was guided by objectives namely; to analyze the factors affecting cash management in businesses in the Kasese district...
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| Format: | Thesis |
| Language: | en_US |
| Published: |
Kabale University
2023
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| Online Access: | http://hdl.handle.net/20.500.12493/1496 |
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| Summary: | The study investigated the role of cash management and performance of businesses in Uganda: A case study of the Northern division of Kasese Municipality, Kasese district. The study was guided by objectives namely; to analyze the factors affecting cash management in businesses in the Kasese district to identify the challenges facing businesses in the Kasese district, and to find out the effect of cash management on the financial performance of businesses in the Kasese district. The study sampled 65 respondents out of 80 as the target population. A descriptive design was used in the study. The researcher used both Primary and secondary data. Secondary data was collected from the business's financial statements and policies. Literature was reviewed using secondary data sources including other reports, journals, businesses' financial reports, the Businesses Act, businesses supervision annual reports, the internet, research projects, and information from the university library. The study also found that cash management increases flexibility and competitive advantage of businesses, enabling the businesses to take cash discounts was identified to have played a very big role in the effects of cash management on the financial performance of businesses. Cash management helps businesses to survive in uncertain business environments, cash management influences the forecasting the financial performance of businesses in the Kasese district. The study also reveals that lack of awareness and poor as among the challenges facing businesses in the field of their operation within the Kasese district and beyond, lack of finance by members that should be helping them to save more, poor member participation also hinder proper performance of businesses in Kasese district, high transaction costs which affects the members. The study concludes that Cash management is very critical as a liquidity management tool in businesses in Kasese district. The management needs to ensure there are adequate internal cash management controls to ensure that there is optimal cash, and strategies are in place during minimal cash and surplus cash since either of side will contribute to liquidity risks to the institution. The study recommends that management should put a tighter internal controls system for cash management. Also, the study recommends that business members to have a graduated increase on their deposits on an annual basis to enhance cash flow for the better service of loan services. More research should be conducted on the dividend policy of businesses since for the last five years, it did not affect businesses profitability. |
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