Evaluating the Effect of Cash Management and Profitability on Private Schools in Ntungamo District from the Lens of Parents Care Primary School, Uganda

Turyahabwe Frank

College of Economics, Kampala International University, Uganda

ABSTRACT

The study explores the cash management and profitability of private schools in the Nntungamo district from the lens of Parents Care Primary School.   A descriptive study design was adopted, and data were obtained using questionnaires and interviews.  Findings revealed that given the size and complexity of the organization and the partnership as a whole, business without cash management is a serious threat.  It is on this note that this article calls for an effective management of cash. Thus, the organization has to put into place controls to ensure that cash is safe. The school should encourage parents to even pay during holidays as a way of boasting the school collections which in turn will enable allocations to be made in the due time. More so, the school needs to invest money in projects that are beneficial to the school. The school should use more of the accrual basis of cash outflow than the cash basis to maintain the school liquidity at an optimal level. Finally, the relationship between cash management and profitability should be monitored all the time. This should be done through cash planning, cash collection, cash allocation, and cash budgeting.

Keywords: Cash management, Cash planning, financial position, Organization, Profitability.

CITE AS: Turyahabwe Frank (2024). Evaluating the Effect of Cash Management and Profitability on Private Schools in Ntungamo District from the Lens of Parents Care Primary School, Uganda. NEWPORT INTERNATIONAL JOURNAL OF CURRENT ISSUES IN ARTS AND MANAGEMENT,4(3):90-95. https://doi.org/10.59298/NIJCIAM/2024/4.3.9095