The Effect of Financial Planning on Performance of Organizations in Uganda Case Study: St. Joseph’s S.S.S Naggalama

Abstract

Financial planning is the key tool and strategy in the management of resources, and subsequent achievement of desired performance in an organization. The need for effective financial planning stems from the fact that many private organizations have limited resources which need proper financial planning. While there are many private organizations that have effective financial planning, a big number still seem to have poor financial planning systems. Thus, effective financial allocation by these private organizations remains not clear.

This study critically examined the effect of financial planning on the performance of an organization (STJSSN).

The study used the data obtained from questionnaires, interviews and review of records from the top management, accountants and teaching and non-teaching staff and some members of the finance Committee. The data was analyzed both qualitatively and quantitatively to assess the effect of financial planning on performance of an organization.

The key findings of the study show that the major sources of revenue for the organization were mainly students’ school fees and a few donations. The main constraints to effective financial planning included; lack of participatory involvement in financial planning, lack of skilled personnel in planning exercise, lack of adequate capital, poor cash flow management, lack of cooperation and coordination and unpredictable government policies.

The analysis from the study showed that there was a strong relationship between financial planning and performance of an organization

The study thus, concludes and recommends that effective and efficient financial planning in a private organization requires the top management to strengthen staff capacity development, close monitoring and evaluation, diversification of sources of funds, participatory budgeting and planning, institution of effective internal controls and staff motivation and reinforcement of financial procedures and guidelines on financial planning processes.

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