Financial controls and cash flow management in small scale enterprises of Nakawa division, Kampala, Uganda
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Date
2013-05
Authors
Journal Title
Journal ISSN
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Publisher
Kampala International University, College of Economics and Management
Abstract
The study was to correlate between financial controls and cash flow management among small
scale enterprises in Nakawa division. It was guided by the following objectives; to determine the
profile of small scale enterprises in terms of ownership, gender, years in existence and type of
goods dealt, to determine the quality of financial controls among small scale enterprises, to
determine the extent of cash flow management among small scale enterprises and to determine
the relationship between financial controls and cash flow management among small scale
enterprises in Nakawa division.
The study used a survey research design involving quantitative and qualitative designs to
correlate financial control and cash flow management in small scale enterprises. This is because
it involves a big sample of respondents on which detailed analytical explanatory qualitative as
well as quantitative research wa~ conducted. Qualitative research design was employed because
it emphasizes linguistic data, as opposed to numerical data while quantitative method was used
to collect data on numerical variables.
It was discovered that financial management helps organizations to achieve their missions and
strategic objectives by ensuring resources are effectively collected and used, and accurately
accounted for. Therefore financial management covers many aspect of the business such as credit
risk, performance indicators, information and management systems, the administrative budget
and market risks. Financial management can be improved by increasing borrowing (lending), or
by putting more money into the business. It was established that most business people used
manual accounting system in their businesses other than computerised accounting systems.
Financial records of the business consists of the purchases, sales records and profits. The
findings reveal that business enterprises keep creditors and debtors records. The components of
cash inflows include; invoices, cash books and debtors account. There are also cheques, receipts
and ledgers. The study recommends that small scale enterprises should put more convenient and less
cumbersome processes for accessing financial products if they are to cater for the small business
groups.
Description
A research report submitted to the College of Economics and Management in partial fulfilment for the Award of Bachelor's Degree in Business Administration of Kampala International University
Keywords
Financial controls, cash flow