Effectiveness of cash management practices in small and medium enterprises: a case of small and medium enterprises in Wakiso district
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The Purpose of the study was to assess cash management practices in small and medium enterprises in Wakiso district basing on the following objectives; to examine the cash management practices of small and medium enterprises in Wakiso district, to find out the challenges faced in cash management by small and medium enterprises in Wakiso district, and to recommend possible solution to the challenges faced in cash management by small and medium enterprises in Wakiso district This study adopted a descriptive research designing which quantitative approach was used. The population was 340 and the sample was 181using Krejcie and Morgan (1970) though 159 respondents participated. Purposive sampling technique was used to select the elements in the sample. Data was collected by the use of questionnaire. The quantitative data was cleaned, edited, coded, entered into the computer and analyzed using the Statistical Package for Social Scientists (SPSS) version 16. Most business persons do not have business plans for their businesses have not attended workshop/seminar/training relating to their business. There are instances where most businesses experience surplus of cash, they do not have cash receipts, do not use cash payments vouchers, do not have their own bank account, do not prepare cash budget, do not segregate cash management roles, and do not bank all the money received in a day. Besides that, most businesses lack cash budgeting, have no bank account, experience unrecorded daily cash, experience unrecorded daily cash, have many bad debts, fail to collect some money from its debtors, and delays to pay off their credit. Nevertheless, there is need for an implementation of basic cash management procedures for proper cash management. Businesses have to allow discounts to debtors, implement proper records management and improve cash flow management among others for proper cash management. There is need for small and medium enterprises to open up bank accounts for proper cash managed and cash is supposed to be banked the same day it is received.