The purpose of the current study was to establish the effect of cash management practices on the performance of micro finance institutions in Uganda while taking a case study of Equity bank in Nakulabye branch. The specific objectives was to establish the various cash management techniques used by equity bank, to determine the Benefits of cash management practices on financial performance, to find out the relationship between cash management and financial performance .the research study employed descriptive research design which enabled the research to come up with relevant information that was required .under this design ,both qualitative and quantitative data collection techniques were employed .the researcher also worked with a sample size of 25 respondents who actively participated in the study .Being on the findings obtained from the study under the data presented in chapter four, it was found that the company has adopted digitalized methods of the managing finance hence this has helped in reducing on the hidden costs more so, the study revealed that proper cash managed by the financial institutions increases on the profit margin realized. From the summary of the findings above, it can be concluded that the application of cash management technique by any financial institution facilitate the smooth operation and the expansion on the organization the role of records keeping makes an organization attain its goal should be effective by having active support for budgeting process from the top management, clear stated daily transactions and forecasting standards. But organization should be carefully in setting the goals for the financial year by making sure that those goals must be achievable in order to avoid wastage of resources. The researcher recommends that the system that has been designed can be installed in equity banks Information Technology System so as to enable Equity Bank achieve its goals, objectives and mission statement. The policy and procedure manuals together with the designed system should strictly be followed if they are to achieve service quality and customer satisfaction as service providers.