Department of Accounting and Finance

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Browsing Department of Accounting and Finance by Author "AGENORWOT, ANNA"

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    CASH MANAGEMENT PRACTICES AND FINANCIAL PERFORMANCE OF HOTELS IN UGANDA: THE CASE OF SELECTED 3-STARS HOTELS IN GULU CITY
    (Gulu University, 2026-06-18) AGENORWOT, ANNA
    The purpose of the study was to examine the effects of cash management on financial performance of 3-stars hotels in Gulu City. The study was guided by five objectives; to determine the cash management practices in 3-stars hotels, to assess the level of financial performance of 3-stars hotels, to examine the relationship between cash management and financial performance of 3-stars hotels, to examine government policies governing 3-stars hotels, and to examine the moderating effects of government policies on the relationship between cash management and financial performance of 3-stars hotels in Gulu City. The study employed a cross-sectional design. Both quantitative and qualitative approaches were applied. A sample size of 140 was selected using purposive, random, and convenience sampling. Data were collected using structured questionnaire and interview guide. The study revealed that cash budgeting is moderately applied, primarily addressing operational needs, but with limited staff participation and monitoring. Cash disbursement practices were generally standardized, yet gaps exist in the recording of minor transactions and in the review of irregular expenditures. Cash control mechanisms are the most consistently practiced, focusing on safekeeping of funds, authorization processes, and bank reconciliations, though challenges remain in the segregation of duties. In terms of financial performance, profitability is actively pursued through planning and reinvestment, although fluctuating profit trends and external operational pressures hinder consistency. Liquidity is managed at the operational level, with limited application of formal assessment tools. Return on Equity is poorly understood and rarely used in performance evaluation. The study established a positive relationship between effective cash management and financial performance, revealing the strategic importance of budgeting, disbursement, and control mechanisms in enhancing financial outcomes. The study recommends improved staff involvement in budgeting, strengthening of internal control systems, and adoption of structured financial performance tracking tools. The study further calls on government authorities to support hotels through simplified regulatory compliance and greater awareness of tax relief provisions.