Cash management and financial performance in organizations: a case study of Mian services (u) Ltd

Abstract

The study was designed to evaluate cash management and financial performance in organisations in an attempt to assess the relationship between the two variables in MIAN Services (U) Ltd as the case study. The research was forecast on achieving the following objectives; to find out the relationship between cash planning and financial performance, to find out the effect between Cash Collection & Disbursement and financial performance, to find out the effect between cash budgeting and financial performance at MIAN Services Uganda Ltd. A case study design was adopted during the study; information was obtained from primary sources using questionnaires and interviews and purposive sampling was used. The results (r = 0.331**, p< 0.05) form the findings revealed that there is a positive relationship between cash planning and financial performance, further a positive relationship between cash collection and disbursement and financial performance was revealed from the results (r = 0.495**, p< 0.01) and finally findings revealed that there is a positive and significant relationship between cash budgeting and financial performance. If cash management is purely monitored, it becomes easy to implement and plan for the profits to be generated by the firm and therefore it is only through effective implementation of cash management that firms get desired profit set levels therefore the researcher concluded that cash management has a positive effect on financial performance of organisations. Recommendations suggested included the need for deploying a cash management system which involves support and coordination among multiple departments, putting into place more controls to ensure that cash is safe and also using more of the accrual basis of cash out flow than the cash basis in order to maintain the liquidity at an optimal level