Bachelor of Science in Accounting and Finance
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Item Enhancing Financial Literacy and Entrepreneurship Behavior Among Market Vendors: A Case Study of Kiko Market With Focus on Emyooga Program(Uganda Christian University, 2024-09-06) Mellan NambatyaThe market vendors provide the informal economy of Uganda with necessary goods and services that help a large fraction of the population. A significant number of Ugandan market vendors have to experience struggles in business due to limited financial literacy and entrepreneurial skills. As noted by Musoke (2021), "an overwhelming percentage of the vendors" in Ugandan markets operate with a very basic understanding of financial management, hence curtailing their potential for saving, investment, and business expansion. This might lead to heightened vulnerability to predatory lending, a lack of access to formal credit, and mediocre growth in business. On the flip side, entrepreneurial behavior may unleash the power of opportunity identification, effective management of resources, and adaptability to changing market conditions among vendors.Item THE EFFECT OF COMPUTERISED ACCOUNTING SYSTEMS ON THE QUALITY OF FINANCIAL REPORTING IN CORPORATE UTILITIES(Uganda Christian University, 2024-09-10) Kasaija AbiaThis is a theoretical research paper that explored the effect of computerized accounting systems on quality financial reports made at the Umeme Kampala branch. The specific objectives of this study were; to examine the effect of transaction processing systems on the quality of financial reporting in Umeme, to examine the effect of computerized reporting systems on the quality of financial reporting in Umeme and to examine the effect of systems security on financial reporting in Umeme. The researcher implemented the correlational design with a combined-method approach, whereby quantitative data were combined with qualitative data. The entire population was 56, out of which a sample size of 49 was obtained by using simple random sampling. Consequently, computerized accounting systems relate moderately positively with qualities of financial reports, meaning results regarding financial report qualities are all accounted by transaction processing systems. The results showed a moderate positive relationship between the systems security and the quality of the financial reports. This was a total outcome on the quality of the financial reports explained by the systems security. The findings of this study have established that there is significant positive relation between computerized accounting systems and the quality of financial reports. The timeliness, comparability, understandability and also reliability have been reviewed in past literature in this study. The realization of integrating the e-billing system with SAP S/4 HANA and PRINCE2 systems was that an upgrade should be done to reduce errors generated by manually transferring data from one system to another. The accounting system has improvements and versions that are regularly updated to suit the relevance of the system in a contemporary environment. This is achieved by continued training of the staff by the authorized dealers of the packages, hence remaining well equipped with the knowledge and experience of the system. Best practice will require that system audit logs be periodically reviewed for potential security incidents and security breaches. Therefore, internal audit reviews should give more emphasis to appraisal and checking of the strength of instituted controls within computerized accounting systems especially the audit logs at Umeme, and the removal of obsolete systems.Item FINANCIAL ACCESSIBILITY AND GROWTH OF SMES’S: A CASE STUDY OF MUKONO MUNICIPAL IN UGANDA.(UGANDA CHRISTIAN UNIVERSITY, 2024-09-17) MANIMANI BIRINDWA KENNYThis study looked at the relationship between financial accessibility and the expansion of SMEs in Uganda’s Mukono Municipality. The need to comprehend how different financial accessibility issues affect SME growth in the current economic environment was the main subject addressed. The study’s objectives were to appraise the impact of branch networks of financial institutions, investigate the impact of digital banking services, and determine how geographical distribution of financial services affects SMEs’ access to capital. The research design utilized a mixed-methods strategy, which combined qualitative and quantitative data collection methodologies. While surveys were used to collect data on the financial inclusion experience, in-depth interviews with owners and managers of small and medium-sized enterprises were conducted to gain an in-depth understanding. Areas with well-distributed branch networks and access to digital banking services and proximity to financial institutions saw greater levels of financial growth, operational efficiency, and market competitiveness. However, it was observed that full accessibility to financing by SMEs was hindered by aspects such as low financial literacy, high transaction costs, and unequal geographical distribution of financial services. Among recommendations put forward towards improving SME access to finance are utilization of digital banking, expansion of branch networks, and targeted financial literacy campaigns. The conclusion of the study points to how financial accessibility bears highly on SME expansion, while giving recommendations that are achievable to increase access to financial services for the long-term expansion and financial success of SMEs in Mukono Municipality.Item Internal Controls and the Financial performance of commercial banks, a case study of centenary bank (u) limited(UCU, 2024-10-07) ATAI NAOMIItem DIGITAL FINANCIAL SERVICES (DFS) AND FINANCIAL INCLUSION AMONGST WOMEN ENTREPRENUERS IN UGANDA A CASE STUDY OF MUKONO MINICIPALITY, UGANDA(UGANDA CHRISTIAN UNIVERSITY, 2024) ANGELLA FAITH NIMURUNGIABSTRACT This research looks into how women-owned businesses in Uganda's Mukono Municipality are impacted by Digital Financial Services (DFS) in terms of financial inclusion, financial performance, and operational efficiency. The adoption of DFS which includes online, mobile, and agency banking is evaluated in terms of its capacity to decrease impediments to financial services for female entrepreneurs, enhance financial management, and foster resilience in company. Data was gathered through self-administered questionnaires from a sample of female entrepreneurs using a cross-sectional survey methodology. Descriptive statistics and correlation techniques were used for analysis. The findings showed that although its adoption is still modest, agency banking improves accessibility to financial services. While internet banking has a beneficial impact on operational efficiency despite security and trust issues, mobile banking greatly enhances financial management and transactional efficiency. The study's conclusions indicate that DFS has a favourable impact on the financial inclusion and business success of female entrepreneurs in Mukono Municipality. However, there are still obstacles that need to be overcome, such low trust, low utilisation rates, and the need for more specialised financial tools and financial education. A portion of the results have significant importance for financial institutions, governments, and technology providers that seek to use digital financial inclusion for economic growth.Item Risk management and financial performance of commercial banks case study of centenary bank(Uganda Christian University, 2024-10-18) Acelun HadijahThe purpose of this study was to assess the effect of risk management on financial performance of commercial banks in Uganda taking a case study of Centenary bank Mukono branch. The specific objectives of this study included: to establish the effect of credit risk on financial performance of commercial banks in Uganda; to determine the effect of liquidity risk on financial performance of commercial banks in Uganda; and, to assess the effect of operational risk on financial performance of commercial banks in Uganda. Descriptive research design was adopted in this research. Both primary and secondary data were used in this study. Data was collected from 40 staff of Centenary Bank using structured questionnaire. The staff were sampled from a population of 60 staff. The findings of this study indicated a significant association between credit risk management and financial performance of the bank. The findings also showed a significant relationship between liquidity risk and financial performance of the bank. From the findings of this study, it can be concluded that credit risk and liquidity risk could impact negatively on the financial performance and therefore, since proper management of these risks enhances financial performance, the commercial banks should put up strong structures to control these risks. This will in turn improve the financial performance of the banks.Therefore, there is need to set up strong structures for management of credit risk in order to enhance financial performance.The bank management should also give utmost priority to address the liquidity problems of the bank. This is because liquidity risk management positively influences financial performance. Therefore, the issues relating to liquidity should be promptly addressed, and immediate remedial measures taken to avoid the consequences of the bank becoming illiquid. viItem The Effect of Budgeting on the Financial Performance of Government Organisations: A Case Study of Kaliro District Local Government(Uganda Christian University, 2024) Doreen MwesigwaThe study examined how budgeting affects the financial performance of government organizations, focusing on the Kaliro District Local Government. Its objectives included assessing the budgeting process, analyzing the impact of budget monitoring, determining the influence of budget forecasts, and investigating the role of budgetary participation in financial performance. Employing a descriptive cross-sectional design, the research integrated both qualitative and quantitative methods to collect data from 34 respondents, achieving a response rate of 89.6%. Data was gathered through questionnaires and interviews with employees and managers. The analysis utilized the Statistical Package for Social Sciences (SPSS) for quantitative data and content and thematic analysis for qualitative data. The findings revealed a significant connection between accounting information and decision-making, as well as a strong link between the completeness of information and effective decision-making. These outcomes highlight the importance of structured budgeting and participatory approaches in improving financial performance within government organizations.Item The impact of taxes on the performance of Micro Enterprises(UGANDA CHRISTIAN UNIVERSITY, 2024-09-09) Owoko EmmanuelThe study went out to investigate the impact of taxes on the performance of Micro Enterprises in Nsuube-Buguju Parish, Mukono TC Division. The study flowed following these three objectives: the relationship between tax rates and the performance of Micro Enterprises, secondly, the relationship between tax incentives and the performance of Micro Enterprises and lastly, the relationship between tax compliance and the performance of Micro Enterprises in Buguju. The study was carried out using explanatory research design where quantitative research approach was utilized. Stratified sampling method and purposive sampling method was used to get a sample of 80 respondents who were Micro Enterprises owners and managers of the selected businesses dealing in segmented businesses and assorted merchandize in Buguju village, and these responded to the questionnaires that were used to collect data. The study found that tax policies have a big influence on the growth and sustainability of micro enterprises. It is also encouraging to see that most respondents concurred that the tax rates were explicitly stated and that the organizations running the Micro Enterprises were aware of the tax payment procedures. However, it raises issues with the perception that taxes are unsupportable by many Micro Enterprise owners, primarily because they are regressive, which has an impact on the bases from which revenues are drawn. In addition, the region's micro enterprises' capacity to grow and flourish is hampered by the apparent lack of tax incentives for them. Therefore, tax compliance is essential to Micro Enterprises' success. In fact, there is a positive association between the performance of Micro Enterprises and their owners' consistent timely filing of returns, payment of taxes, and adherence to tax legislation. In the end, it produced a lengthy list of suggestions aimed at promoting and reducing the tax burden on micro-enterprises. These included streamlining tax laws, developing targeted tax incentives, enhancing tax education initiatives, changing regressive tax laws, fostering greater collaboration between tax authorities and micro-enterprises, offering regular policy reviews, and even appointing a tax ombudsman specifically for micro-enterprises. By lowering taxes, offering incentives, educating Micro Enterprises, and promoting collaboration, policymakers can further foster this atmosphere and help these businesses grow, innovate, and comply with regulations—thereby addressing some of their very particular problems.Item THE IMPACT OF FINANCIAL STRUCTURE ON FINANCIAL SUSTAINABILITY OF SMALL AND MEDIUM SIZED ENTERPRISES IN MUKONO TOWN.(Uganda Christian University, 2024-09-05) Leon Godfrey ByarugabaFinancial structure refers to a mix of debt and equity that a company uses to finance its operations whereas financial sustainability refers a business's ability to consistently have enough reserves to cover unexpected expenses without relying on borrowing or compromising essential services. This study aimed at to find out the impact of financial structure on financial sustainability of SMEs in mukono town. The objectives of the study were, To examine the impact of short-term debt levels on financial sustainability of small and medium sized enterprises, to assess the relationship between long-term debt levels and financial sustainability of small and medium sized enterprises and to examine the influence of equity on financial sustainability of small and medium sized enterprises. The sample size of the study was about 60 SMEs and the following were discovered the following, a significant majority 90% find equity financing preferable to debt financing, with 28%. While 46% of respondents acknowledge that equity investors bring valuable expertise, a notable 38% weren’t too sure. In terms of financial risk, 60% believe equity financing helps reduce it, though 20% disagree. Finally, 42% of respondents feel that equity investors demand significant control over business operations, with 32% expressing neutrality and a small minority 24% were not agreeing. A majority 64% agree that their business has experienced revenue growth over the past three years, with 22% strongly agreeing. Some of the conclusions included Short-term Debt, while its essential for daily operations and liquidity management, short-term debt is a double sided, it provides necessary funding but also poses significant risks to financial sustainability of SMEs in mukono town, long-term debt has been beneficial for business expansion and stability, but its associated costs and risks prove to be challenging to SMEs, making it a less favourable option for some businesses, equity financing is preferred by SMEs as it reduces financial risk. However, the potential for loss of control due to the involvement of equity investors is a notable drawback and some of the recommendations included, short-term Debt Management, SMEs in mukono should carefully assess their reliance on short-term debt, balancing the need for liquidity with the associated risks and Implementing strict financial management practices can help mitigate these risks and the long-term Debt Strategy, SMEs in mukono should consider long-term debt for business expansion and stability but should be cautious of the costs involved. It is recommended that businesses negotiate favourable terms and conditions to minimise the financial burdenItem CAPITAL STRUCTURES ON FINANCIAL PERFORMANCE OF MEDIUM SIZED ENTERPRISES IN MUKONO.(UGANDA CHRISTIAN UNIVERSITY, 2024-09-05) TUMUSIIME ATUKUNDA JANETThe capital structure is one of the most vital topics in finance, majorly about the optimal capital structure that will bring greater financial value to medium-sized enterprises. This study tried to ascertain the effect of the capital structure on a firm's performance in the case of the Paris Corner supermarket. The research was based on the objectives meant to establish the following: the relationship between capital structure and financial performance of medium-sized enterprises in Mukono, the effect of debt financing on the financial performance of medium-sized enterprises in Mukono, and finally, the effect of equity on financial performance of medium enterprises in Mukono. Chapter 1 represents the background of the study for this research; it also states the problem of the study which was identified as the declinig profitability and liquidity of medium sized enterprises as a result of poor financial decisions when it came to selecting an appropriate capital structure to employ in their business, its objectives, and the purpose. It then presents the research questions, scope of the study, and its significance. Chapter 2 goes ahead to represent the literature-reviewed. Literature on capital structures on financial performance of medium-sized enterprises and the understanding of different scholars on such variables. Chapter 3 represents the research methodology, consisting of a description of the research design, study population sample size, data collection instruments used and in this case questionnaires were administered, data quality, that is reliability and validity, and methods of data presentation. Chapter 4 then gives the findings of the research in reference to the research objectives. Presentation of the data was done through tabulation for easy understanding. Finally, which is the last chapter, chapter 5 summarizes data in a more exact way. It also gives the recommendations and conclusions of the study.Item Credit policy and performance of commercial banks(UCU, 2024-09-09) NDYAGAMBA WILSONThis study examined the relationship between credit policy and commercial bank operational performance, with a focus on study contexts main branch in Kampala. The study focused on how the commercial bank's loan policy affected its financial performance. The target population was comprised of 50 workers at the study context, whereas a sample of 43 respondents was selected using Tora Yamane's method.Data was collected via questionnaires, and the results were analyzed using SPSS software. The findings reveal that respondents have a strong consensus on the influence of credit policy on the efficient performance of commercial banks. However, improved knowledge and application may lead to increased efficiency in credit evaluation and regulatory compliance. Similarly, in the study context workers reached a considerable consensus on the effectiveness of credit rules in improving financial performance, particularly in terms of implementation management and risk minimization. However, varying levels of comprehension and application demonstrate that credit rules must be refined for financial health evaluation and revenue growth.Furthermore, the research showed that approval criteria assure asset quality and that early reception is required to maximize working capital, improve profitability, and reduce the risk of default. The necessity for reliable information emphasizes the relevance of effective accounting in decision-making. Based on the findings, solutions include credit management through internet-based innovations, financial reporting through the use of computerized accounting packages, and training to improve financial management abilities in credit departments. These improvements may improve the commercial bank's financial performance and operational feasibility.Item Electronic banking and financial performance of commercial banks a case of dfcu bank Mukono branch(Ucu, 2024-10-10) Kakeeto EMILLYItem ACCOUNTING INFORMATION SYSTEMS AND FINANCIAL PERFORMANCE OF PRIVATE HEALTH FACILITIES IN UGANDA (CASE STUDY OF BWEYOGERERE PRIVATE HEALTH FACILTIES)(UCU, 2024-10-01) ANGOM VICKYThe main objective of this study was to establish how the financial performance of private health facilities in Bweyogerere related to their accounting information systems. These were motivated by objectives such as establishing how system quality affects financial performance, assessing the process of implementing accounting information systems in relation to financial performance, and establishing the challenges faced during the process of implementing the accounting information system in relation to the financial performance of private health facilities in Bweyogerere. The design employed in this study was a survey research design. It intended for an audience that was made up of the health institutions and their staff as well. Purposive sampling with a dash of basic random sampling was employed in selecting 260 respondents for the sample size. Questionnaires were used as a method of data collection. The following are the key findings from the study that presented the primary conclusions. First, there existed a significant statistical relationship between private health institutions' financial performance and accounting information systems. Moreover, the study found that system quality is positively related to the financial performance of private healthcare facilities at a statistically significant level. The major processes involved in the AIS implementation include: Project Initiation, Software Installation, Team Project Training, System Design, Clear out Records from the Old System, and Data Migration. If each process does not go well, they are all going to take different influences on financial performances. Aside from the other issues, the main problem encountered by 97.3% of the implementation team was that, once installed, the system did not run smoothly and thus would have a major effect on the health facility in terms of finances. The study therefore recommended that to effectively manage the most valuable resource information management of private health institutions required a well-thought-out and functional accounting information system. This effect should be further researched in future interventions with the inclusion of the intervening and moderating variables. The length of the association can also consider longitudinal studies in future research.Item THE EFFECTS OF TAX POLICIES ON THE PERFORMANCE OF SMALL AND MEDIUM SIZE ENTERPRISES IN MUKONO(UCU, 2024-09-30) BRENDA PEACE AYEERWOTThis study investigates the impact of tax policies on the performance of small and medium sized enterprises (SMEs) in Mukono, Uganda. Using a mixed-methods approach, the research explores how tax rates, tax compliance, and tax incentives influence SMEs’ financial performance, growth, and sustainability. This study examines the impact of tax policies on the performance of small and medium sized enterprises (SMEs) in Mukono, Uganda, with a focus on tax compliance, tax assessment, and performance.The research aims to: Investigate the effects of tax policies on tax compliance among SMEs in Mukono. Analyze the relationship between tax assessment and SME performance. Examine the impact of tax policies on the financial performance and growth of SMEs in Mukono. A survey of 100 SMEs and in-depth interviews with 50 entrepreneurs reveal significant relationships between tax policies and SME performance. The findings suggest that high tax rates and complex tax compliance procedures hinder SME growth, while tax incentives and simplification of tax procedures enhance performance. The study recommends tax policy reforms to support SME development in Mukono, including reduced tax rates, streamlined tax compliance, and targeted tax incentives. The research contributes to the understanding of tax policy effects on SMEs in developing economies and informs policy decisions to promote entrepreneurship and economic growth in Mukono.Item FINANCIAL RISK MANAGEMENT AND FINANCIAL PERFORMANCE OF COMMERCIAL BANKS IN UGANDA: A CASE STUDY OF CENTENARY BANK, MUKONO BRANCH(2024-09-30) Lenia DoreenA case study of Centenary Bank's Mukono branch was used in the study to examine the connection between financial risk management and the financial performance of commercial banks in Uganda. With regard to Centenary Bank, Mukono, it specifically examined the relationship between financial risk identification and financial performance, established the relationship between financial risk assessment and financial performance, and evaluated the relationship between financial monitoring and financial performance. A cross-sectional survey research design was employed to conduct the study, and both quantitative and qualitative research methods were applied. Purposive and basic random sample techniques were employed together with questionnaires and interviews to gather the data. Despite just 44 responders, the survey also included a sample size of 48 management and staff members from the Centenary Bank branch in Mukono. The results showed that the bank's strong operational risk mitigation methods, clear processes and systems for recognizing possible financial concerns, and encouragement of employee reporting all greatly enhance financial performance. Furthermore, the bank's financial performance is positively impacted by its efficient use of cutting-edge risk assessment tools and models as well as its dedication to routinely reviewing and updating these procedures. Furthermore, there is a significant association between improved financial performance and the bank's use of cutting-edge technology to track market trends, conduct routine internal audits, and thoroughly evaluate financial statements. These results highlight the significance of proactive risk management techniques and financial oversight procedures for the long-term viability of Centenary Bank. According to the study, Centenary Bank should prioritize compliance and internal audits, foster a culture of continuous improvement, strengthen its risk identification and assessment processes through knowledgeable evaluations and regular updates, improve employee engagement in risk reporting, optimize risk mitigation strategies, and emphasize long-term financial sustainability by striking a balance between prudent management and risk-taking for stability and resilience in shifting economic conditions.Item The impact of investor behavior on the stock market in Uganda(UCU, 2024-09-27) Nantanda Celia NoelineItem CREDIT ACCESSIBILITY ON THE FINANCIAL PERFORMANCE OF SMALL & MEDIUM ENTERPRISES (SMES) IN UGANDA.(UCU, 2024-09-23) Nambuya Whitney GladysThis study was inspired by the barriers that small & medium enterprises face when trying to access credit from commercial banks which is essential for sustaining their business growth and financial performance. The aim of this study is to investigate how credit accessibility affects the financial performance of SMEs in Mukono Central Division. To achieve this, the study was focused on key objectives such as; to examine the relationship between availability of credit and the financial performance of SMEs in Mukono, to examine the relationship between cost of credit and the financial performance of SMEs in Mukono, to examine the relationship between ease of access to credit and the financial performance of SMEs in Mukono. The study used a cross-sectional survey design. For data collection, a closed-ended questionnaire was issued to respondents who were the business owners or managers. A random sample of 52 respondents was drawn from a population of 60 licensed SMEs using simple random sampling method. The data was subjected to descriptive and inferential analyses, including linear regression to determine the relationship among the variables. The findings revealed a significant positive correlation between access to credit and the financial performance of SMEs. To improve credit access for SMEs, it is important for commercial banks and other lending institutions to reconsider the cost of credit, ensuring it aligns with what borrowers can realistically afford.Item THE EFFECT OF CREDIT POLICIES ON LOAN PERFORMANCE OF SMALL AND MEDIUM ENTERPRISES: A CASE STUDY OF NAKAWA TOWN.(Uganda Christian University, 2024-09-20) Tukamushaba AudreyThe study examined the effect of credit policies on loan performance of small and medium enterprises in Nakawa Town. The primary objective of the study was to examine the effect of credit policies on the loan performance of SMES. The specific objectives were to find out the effect of credit standards on loan performance of SMES. To examine the effect of collateral security on loan performance of SMES. To examine the effect of collection period on loan performance of SMEs in Nakawa Town.The study used a descriptive cross-sectional design using both qualitative and quantitative approach to collect data from a sample of 40 respondents from supermarkets and shops in Nakawa town,who gave a response rate of (80%). Questionnaires and interviews were used to collect the data from the supermarkets and shops in Nakawa Town. Data was collected using the questionnaires, interview guide and analyzed using Statistical Package for Social Scientists (SPSS) and content and thematic analysis for quantitative and qualitative data respectively. The findings revealed that there is a significant relationship between accounting information and decision making, and a strong significant relationship between completeness and decision making. The study further recommends that the investors should be trained to acquire necessary skills to help understand the financial reports so they make informed decisions.Item FINANCIAL INCLUSION AND GROWTH OF SMALL AND MEDIUM ENTERPRIES IN UGANDA(UGANDA CHRISTIAN UNIVERSITY, 2024-09-20) ALINAITWE DESIRE SHEILLAThe study investigated the relationship between financial inclusion and growth of small and medium enterprises (SMEs) in Mukono District, Uganda. Financial inclusion refers to access to and usage of formal financial services, which are critical to the economic growth of SMEs. The study used a cross-sectional research design to gather both quantitative and qualitative data from 66 SMEs in the district. The findings of the study revealed that while many SMEs had access to savings accounts and mobile money services, barriers such as high account charges, limited collateral for loans, and lack of trust in financial institutions hinder further financial inclusion. The researcher recommended lowering entry barriers for financial services, increasing financial literacy programs, and developing policies to enhance trust in financial institutions. These efforts are expected to promote SME growth, innovation, and overall economic development in Mukono District.Item THE EFFECT OF WORKING CAPITAL MANAGEMENT ON FINANCIAL PERFORMANCE OF MEDIUM-SCALE BUSINESSES IN LIRA CITY A CASE OF MASS PLUMBING AND TILES HARDWARE, LIRA CITY WEST ALONG OLWOL ROAD(UGANDA CHRISTIAN UNIVERSITY, 2024-09-17) EDOLA SAMUELThis study aimed at establishing the effect of working capital management on financial performance of Medium-Scale Businesses in Lira City, with reference to Mass Plumbing and Tiles Hardware, Lira City West along Olwol Road. The objectives included; to establish the relationship between inventory management practices and the financial performance of medium-scale businesses in Lira City, to analyze the relationship between receivables management strategies and the financial performance of medium-scale businesses in Lira City, and to examine the relationship between cash management practices and the financial performance of medium-scale businesses in Lira City.The study employed a correlational research design. The study population comprised of Managing Directors, Finance Manager, Accounts Officers, Inventory Managers, Operational staff, and Cashiers; totaling to 24 respondents. These were simple randomly selected. Data was collected using questionnaires. Quantitatively data was collected by use of frequencies and percentages as well as inferential analysis. The results of objective one indicated that there is a significant relationship between inventory management practices and the financial performance of medium-scale businesses in Lira City (.686**). This implies that maintaining optimal inventory levels has positively impacted our business's cash flow, and the use inventory management software to track and manage our stock efficiently. Thus, therefore, there is 47.1 % variation in financial performance is explained by changes in inventory management practices. These results depict that inventory management practices is significantly related with improved financial performance in medium-scale businesses (β1 =0.686, p<0.01). The study also indicated that there is a significant relationship between receivables management strategies and the financial performance of medium-scale businesses in Lira City (.589**). This implies that timely collection of receivables has positively impacted business’s cash flow. Thus therefore, there is 34.6% variation in financial performance is explained by changes in reviewable management strategies. In the study results confirm that reviewable management strategies is significantly related to improved financial performance in medium-scale business (β1 =0.589, p<0.01). The study finally indicated that there is a significant influence of cash management practices on the financial performance of medium-scale businesses in Lira City (.342**). This implies that in situations where there is cash management strategies, business experiences minimal cash shortages due to efficient cash management practices, and business regularly prepares cash flow forecasts to manage liquidity, then financial performance is likely to be affected. Thus therefore, there is 11.7% variation in financial performance is explained by changes in cash management practices. In the study results confirm that cash management practices significantly influence the financial performance of medium-scale businesses that practice it (β1 =0.342, p<0.02). Basing on the above study findings, it was concluded that working capital management has a statistically significant relationship with financial performance of Medium-Scale Businesses in Lira City. The recommends that the management of medium-scale businesses should not over-concentrate on manipulating the levels of working capital with an attempt to increase the entrepreneurs’ profitability. They should therefore focus other factors other than working capital, which improve profitability of the entrepreneur; and areas of further research were suggested.