Analysis of receivables management in parastatals a case of Uganda Post Limited

Abstract

The purpose of the study was to analyze the determinants of receivable management at Uganda Post Limited. The study was driven by the fact that receivable management has significant contribution towards the company’s performance. Specifically, the study sought to examine the factors affecting the receivables management, identify challenges affecting the receivables management and to suggest applicable strategies to improve receivables management at Uganda Post Limited. The study adopted a cross-sectional research design with quantitative and qualitative approaches. The target population was Uganda Post limited with the sample size of 87 informants as unit of inquiry. Data was collected using questionnaire method-analyzed with SPSS version 20 and interview guides were analyzed to develop thematic themes. Findings from the study indicated that majority of the respondents agreed to setting of credit policy, credit standards, fixing limit on credit period, cash discount and internal controls as factors affecting receivable management at the company. However, weakness in credit policy, lack of proper records, poor planning to balance offer between profitability and liquidity, unfair regulatory framework and use of tradition methods were the dominant challenges affecting receivable management and all strategies were applicable on the improvement of receivable management at the company. The study recommends that Uganda Post Limited should develop ICT infrastructures to support electronic customer credit approval, customer master data, automatic invoice billing, electronic checking of customer past financial dealing, automatic generated demand notes and strong internal controls to improve on the management of receivables and ultimate company performance.