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

Abstract

Purpose: This study aims at determining the influence of cash management on the financial performance of private schools in Tanzania. Design/Methodology/Approach: A sample of 132 respondents was selected by the researcher 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 are both located in Dar es Salaam. The study used purposive and simple random sampling techniques while data were collected by using interviews and distribution of questionnaires and analyzed quantitatively by using descriptive statistics through Statistical Packages of Social Science (SPSS). The content analyses were run by using MAXQDA10 qualitative data to conclude. Findings: The findings of this study revealed that cash management influences the financial performance of private schools in Tanzania. However, there is inefficiency in implementing cash management, particularly (cash planning, cash budgeting, cash collection as well as cash control) in private schools. This is influenced by various reasons which include the absence of an Accounting Staff, limited sources of financial resources, lack of Transparency and Accountability, absence of bank accounts, poor computer literacy, and poor record keeping. Implications/Research Limitations: Five private schools from one city were used for this study hence the findings might not be a reflection of the entire country. Practical Implications: To eradicate the above constraints, the researcher recommends increasing accounting staff, expanding sources of funds, record keeping, and provision of financial education. Originality/Value: The study addresses how cash management influences the financial performance of private schools based in the Tanzanian context.