TABLE OF CONTENTS
APPROVAL
DECLARATION.
ii
DEDICATION iii
ACKNOWLEDGMENT iv
TABLE OF CONTENTS v
ABSTRACT viii
CHAPTER ONE: INTRODUCTION 1
1.0 Introduction
1 Background to the study
1 .1 . I Historical Perspective
1.1 .2 Theoretical perspective 3
1 .1 .3 Conceptual Perspective 4
1.1 .4 Contextual Perspective 5
1.2 Problem Statement 5
1.3 Purpose of the study 6
1.4 Research Objectives 6
1.5 Research Questions 6
1.6 Scope of the study 6
1.6.1 Subject Scope 7
1.6.2 Time Scope 7
1.6.3 Geographical scope 7
1.7 Significance of the study 7
ChAPTER TWO: LITERATURE REVIEW 9
2.0 Introduction 9
2.1 Theoretical review 9
2.2 Conceptual Review 10
2.3 Related literature on accounts receivable management and organizational performance 11
2.4 Effect of accounts payables management on financial performance 14
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2.5 Effect of credit management on financial performance .15
2.6 Related studies 19
2,7 Research Gaps 21
ChAPTER THREE: METHODOLOGY 23
3.0 Introduction 23
3.1 Research design 23
3.2 Study Population 23
3.3 Sample size 23
3.3.1 Sampling Selection techniques 24
3.4 Data source 24
3.4.1 Primary data 25
3.4.2 Secondary data 25
3.5 Methods of data collection 25
3.5.1 Questionnaires 25
3.5.2 Interview Guide 25
3.6 Data processing and analysis 25
3.7 Reliability and Validity 26
3.8 Ethical Consideration 26
3.9 Limitations and solutions 26
ChAPTER FOUR: PRESENTATION, INTERPRETATION AND ANALYSIS OF
FINDINGS 27
4.0 Introduction 27
4. 1 Demographic Characteristics 27
4.1 .1 Findings on age of respondents 27
4.1.2 Findings on gender of respondents 28
4.1 .3 Findings on educational Qualifications of respondents 29
4.1.4 Findings on Marital status of respondents 30
4.1.5 Findings on department of respondents 30
4.1.6 Findings on Position of respondents 3 1
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4.1.7 Findings Period of work .31
4.2 Effect of accounts receivable management on organizational performance 32
4.3 Role of accounts payables management on organizational performance in Tororo 34
4.4 Effect of credit management on organizational performance on Tororo cement 36
CHAPTER FIVE: SUMMARY, DISCUSSION OF THE FINDINGS, CONCLUSION ANI)
RECOMMENDATIONS 39
5.0 Introduction 39
5.1 Summary of findings 39
5.1.1 Effect of accounts receivable management on organizational performance 39
5.1.2 Role of accounts payables management on organizational performance 39
5.1.3 Effect of credit management on organizational performance 40
5.2 Discussion of findings 40
5.1.1 Effect of accounts receivable management on organizational performance 40
5.1.2 Role of accounts payables management on organizational performance 41
5.1.3 Effect of credit management on organizational performance 41
5,3 Conclusion 42
5.4 Recommendations 43
5.4.1 Effect of accounts receivable management on organizational performance 43
5.4.2 Role of accounts payables management on organizational performance 43
5.4.3 Effect of credit management on organizational performance 44
5.5 Areas of further research 44
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.