Impact of Accounts Receivable Management on the Financial Performance of SACCOS in Sheema Municipality, Southwestern Uganda

Abstract

The study aimed to examine the impact of accounts receivable management on the financial performance of Savings and Credit Cooperative Societies (SACCOs). Despite their significant contribution to a country's economic development, SACCOs still face financial challenges, with 26% of loans considered bad debts and 60% of them failing within a year. A correlational research design was adopted, with a sample size of 145 and a questionnaire used for data collection. A regression analysis using SPSS was used to analyze the data. The results showed that accounts receivable management significantly affects financial performance, suggesting that innovative programs can increase SACCOs' financial performance by.494 units. The study recommends the introduction of innovative programs to improve SACCOs' financial performance, benefiting government policy makers, researchers, and management teams. The findings will be beneficial to government policy makers, researchers, and Sheema Municipality management teams. Keywords: SACCOs, Accounts receivable management, financial performance