Cash Flow Management and Financial Performance of Tororo Cement, Eastern Uganda

ABSTRACT The study was to assess the effect of cash flow management and organizational performance in Tororo cement of companies. It was based on the research objectives that included assessing the effect of accounts receivable management on organizational performance, analyze the role of accounts payables management on organizational performance and examine the effect of credit management on organizational performance. The study adopted a surveys and case study design with the sample population of 50 people as respondents chosen from Tororo cement of companies. It was based on quantitative and qualitative research approaches. The study findings were that accounts receivable management on organizational performance in Tororo cement Accounts receivables reduces defaults in payment for business according to 80% of the respondents who are in agreement, reduces cost of administration of Accounts receivables business had 88%, enhances working capital flow management had 78%, Provision of debtor information to the organization had 78%, reduces cash collection delays for the organization had 66%, reduces cash collection delays for the organization had 66%. It was also established that accounts payables management affects organizational performance in Tororo cement. The findings based on agreement was that, regularly pay creditors in lime for continued operations with 80% of the respondents, maintain records of what it owes to suppliers had 74% of agreement, organization usually pays using the payment mode required by our suppliers (cash, draft, cheques had 60% of respondents, company ‘s suppliers are regularly informed of the delays to avoid charges on late payment 48% of the respondents, the organization normally keeps a stringent/delay payment policy 60% of respondents, reduces costs of invoicing and adequate and accurate financial reporting had 58% of the respondents. The study findings on the effect of credit management on organizational performance on Tororo cement. The study findings were that on the effect of credit management on organizational performance on Tororo cement. The findings were that the organization experiences cash deficits in its operations hinder operations according to 90% of respondents, The company ‘s cash flows are characterized by more inflows than outflows had 94% of the respondents, the company has efficient cash flow management systems supporting operations had 60% of the respondents, The organization carries out careful planning and monitoring of cash flows over time so as to determine the optimal cash to hold 90% of the respondents, budgeting is useful in planning for shortage and surplus of cash 60% of the respondents and Credit is effectively handled to attain the complaints from the staff and manage had 60% of the respondents. The study recommended for the need to enhance accounts intensify debt collection for organizations to improve the performance, maintaining a positive cash flow is essential for a business to survive, Effective accounts receivable management can assist agencies improve customer service through providing timely information on customer requirements, There is need to improve the credit payment procedures.