Cash Management Practices and Financial Performance of Saccos in Mayuge District-Uganda; A Case Study of Bugaddesacco.

ABSTRACT The study sought to evaluate the effect of cash management techniques on the financial performance of Saccos in Mayuge district; a case study of Bugadde Sacco.The study specifically looked at the effect of cash planning, cash budgets, and cash control on the financial performance of Bugadde Sacco in Mayuge district. A cross-sectional study design for quantitative and qualitative analysis was used on 40 respondents that brought back the questionnaires. Data was collected by use of a self-administered questionnaire, and interview guide. Quantitative data was analysed at univariate level basing on the mean and frequencies, percentages, bivariate level using correlation coefficient with the help of Statistical Package for Social Sciences 17.0 (SPSS). Qualitative data were analysed by content analysis by composing explanations and substantiating them using the respondents open responses. The study found out that Bugadde Sacco plans for its cash as a tool against missuse, embezzlement and fraud of the Sacco’s funds, the Sacco also employs other tools like cash banking, Staff productivity and profitability move in the same direction, Cash inflows, out flows, and planning was all found out to influence growth and expansion of Bugadde Sacco in Mayuge district. The researcher further found out that the Sacco maintains a cash book, petty cash book and other related books. It is from these documents that informed decisions can be made as regards forecasts, budgets, disbursements, allocations and controls and any other relevant aspect beneficial to the Sacco. The researcher concluded that that cash planning leads to effective cash management, this ensures timely provision of cash resources necessary to support the Saccos’ operations. Whether Bugadde Sacco is flush with cash or experiencing a shortfall of hinds, good cash planning is critical to the success of every firm.And therefore went ahead to recommend Bugadde Sacco to put into place controls to ensure that cash is safe through opening the Sacco’s Bank account to avoid mismanagement of its funds by individuals