Financial Management Practices And Profitability Of Small And Medium Enterprises In Kampala District A Case Study Of Barak Bakery

ABSTRACT

The study was carried out on financial management practices and profitability of small and medium enterprises in Kampala district; a case study of Barak Bakery. The objectives of the study were to establish contributions of financial planning and control on profitability of Barak Bakery in Kampala District; to identifY the financial management practice; to identifY the relationship between financial management and profitability of SME and to examine how the working capital management influences the Barak Bakery in Kampala District. The study was conducted in Kampala District, in Kibuye The study adopted cross-sectional survey. A san1ple size of twenty eight (28) respondents was used; The study used questionnaire survey interviews and documents reviews as methods of data collection. The study revealed that Barak Bakery has financial planning, control. The findings from the respondents, agree that there is separation of duties in accounting to ensure every work is checked. The findings show that more than 3% of the respondents agree with the statement. The study recommended that, the owners of Barak Bakery should make sure that they set mission statement so as to keep them focused. The study also recommended that Barak bakery should have sales tean1 in place so as to market products and services to the business in order to increase sales. The study concluded that financial management practice was seen as the process of planning, controlling, managing accom1ting system as well as working capital management. Approximately 95% of business that sold that sold on credit tended to sell to anyone who wished to buy. Results of data analysis show that small and medium enterprises had put in place various financial management practices to enable them attend to profitability.