The Influence of Cash Management on Financial Performance of Private Schools in Tanzania

Abstract

This study examines the influence of cash management on financial performance of private schools in Tanzania. It was based on three main objectives including; (i) to determine the efficiency of cash management mechanisms (cash planning, cash budgeting, cash collection as well as cash control); (ii) to determine constraints in cash management; and (iii) to suggest the strategies for eliminating the constraints facing cash management in private schools. The study was quantitative in nature and employed a survey design. The researcher selected a sample of 132 respondents from five private schools which are Loyola School, Barbro Johansson Model Girls Sec. School, Dar es Salaam International Academy, International Schools of Tanganyika, and Haven of Peace Academy all located in Dar es salaam. The study used purposive and simple random sampling technique. Interviews and questionnaires were used to collect data. The data collected from the field were analyzed quantitatively by using descriptive statistics through Statistical Packages of Social Science (SPSS). The findings of this study revealed that cash management influence financial performance of private schools in Tanzania. Inefficiency in implementing cash management was detected in private schools. This is attributed to absence of accounting staff, limited source of financial resources, lack of Transparency and Accountability, absence of bank account, poor computer literacy, poor record keeping. In order to eradicate the above constraints, the researcher recommends for increasing of accounting staff, expanding sources of fund, record keeping, and provision of financial education.