Impact of cash management on the financial performance of SME's in Pallisa town.

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.