Effects of cash management on the performance of business organizations in Uganda: a case study of Joda traders Uganda Ltd, Kampala-Uganda
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Date
2009-08
Authors
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Publisher
Kampala International University, College of Economics and Management
Abstract
This study analyzed the effect of cash management within an organization, towards
the organization’s success. Cash management involves the planning and controlling
of cash to ensure that cash is available when required and that it is used efficiently.
Cash are held by companies for transaction motive, precautionary motive as well as
speculative motive. Effective cash management activities cover the planning and
controlling of cash level by continuously reviewing the organization’s liquidity policy
and the working capital position ofthe organization. It assist organization to consider
the efficient allocation of surplus cash holding to profitable use, ensuring that cash is
available to meet all running costs, taxation, payments and dividends. Cash
management identifies the cash balance which allows for the business to meet day to
day expenses, but reduces cash holding costs. Organizations involve large financial
transactions therefore, effectively managing operating funds and projecting future
cash flow requirements is a MUST for organizations and finance managers. In order
to do that, managers must understand specific cash flow movements within the
business organization arising from their day-to-day decisions on investment,operations and financing. Interviews, observation and questionnaires were methodsused to collect the data inthis thesis which includes data concerning the progress ofJODA, its sales, cash management system used, customer satisfaction status, and debtmanagement from which conclusions and recommendations were made.
Description
A thesis submitted to the School Of Postgraduate Studies in partial fulfillment of the requirements for the Award of the Degree of Master of Business Administration (Human Resource Management) Of Kampala International University
Keywords
Cash management, Performance, Uganda