The effect of book keeping on the performance of Financial Institutions: a case study of Kitgum Cooperative Savings and Credit Society (SACCO)
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Date
2016-05
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Kampala International University: College of Applied Economics and Management Science
Abstract
The topic of the study was to assess the effects of book keeping on the performance of Financial Institution. The researcher used the case study of Kitgum Cooperative Savings and Credit Society (SACCO). The study was guided by three objectives; (i) To find out the effects of account
preparation on performance of financial institution; (ii) To find out the effect of inventory and budget control on performance of Financial Institution; and (iii) To find out the effect of record keeping on the performance Financial Institutions. Data was collected from 36 respondents using self administered questionnaires as the key data collection instruments. The finding revealed that book keeping is primarily necessary for the better financial performance of an organization, it further also indicated that proper book keeping minimizes to the loss of organization funds, minimizes corruption, it all provides information for easy follow up when a need a rises. The study also revealed that book keeping played a fundamental role in the performance of financial institution. Because it enabled proper accountability for the assets, proper accountability of all the cash payments and receipts made on the basis of proper documentation and it also helped the management in ensuring that they were working towards the achievement of their objectives. According to the findings, the researcher recommends the following; The management of Kitgum SACCO should improve on the enforcement procedures that are attached to bookkeeping by ensuring that any transaction that any transactions should be properly recorded in the final books of accounts, this was based on the information that was obtained concerning account preparation and performance. On maintenance of financial records, the management should provide a safe custody of all the
documents of Kitgum SACCO and this can be achieved by filling all the relevant documents and putting them in a safe place to avoid them being stolen of being accessed by illegal persons. Concerning budgetary and inventory control, the management of Kitgum SACCO should aim at
operating a surplus budget to avoid being affected by a deficit budget by ensuring that the incomes are more than the expenditures. The management should also adopt better inventory control methods and should specify clearly the procedure they follow in giving and ordering for materials, therefore it can apply methods like the LIFO, and FIFO.
Description
A research report submitted to the College of Applied Economics and Management Science in partial fulfillment for the Award of a Bachelor's Degree in Business Administration of Kampala International University
Keywords
Book Keeping, Performance of Financial Institutions, Kitgum Cooperative Savings and Credit Society (SACCO)