Abstract:
The study examined the effect of cash management on financial performance of SMEs in Pallisa
town. The study applied quantitative and qualitative research design
Data was collected from 250 people as a target population with accessible unit of inquiry being
186 respondents consisting of managers, cashiers, accounts assistants, supervisors and operators.
Data was collected using a closed ended questionnaire and statistical packages goods and services
for analyzing data where frequency tables, descriptive statistics, reliability, validity, correlation
and regression results were obtained. The study findings revealed that there is a positive and
significant effect between cash planning, cash control, liquidity management on financial
performance. The study therefore recommends that improvement on financial performance
depends on cash planning, cash control and liquidity management.
