Management and control of accounts receivable and profitability-a case study of darabshiil bank in Kampala, Uganda
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Date
2010-03
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Publisher
Kampala International University, College of Economics and Management
Abstract
The purpose of the study is to explore the relationship between management and control of accounts receivable and profitability. The researcher used case study of Dahabshil bank that operate in Kampala, Uganda. In the questionnaire, the bank had to indicate that the extent to which issues such as managing and controlling account receivable have effect on profitability in banking. The researcher used case study to collect data. It was administered questionnaire and interview to the targeted population. The data collected in this research was analyzed by using SPSS and manual. Finally, the results obtained showed that there is a relationship between management and control of accounts receivable on the profitability. The study showed that credit rating has an important role on profitability because it controls receivables and employed different criteria to measure the people before they take debt, these conditions are bank reference, historical background, and trade reference. After analysis of finding, it was found that management and control of receivables affects profitability of banking. In addition to that effective management receivables must implement policies which maximize the objective of firm. These procedures as extending credit, establishing period, monitoring collections, evaluating liquidity of receivables and accelerating cash receipt. The study recommends that the following areas to be studied in future: management control of working capital and profitability, role of current assets on profitability and role of controlling accounts payable on return on investment.
Description
A thesis submitted to the School of Postgraduate Studies in partial fulfillment for the requirements for the award Degree of Masters of Business Administration-Finance and Accounting of Kampala International University
Keywords
Management, Accounts receivable, Profitability, Darabshiil bank