ABSTRACT The study was carried out to find out the relationship between inventory management and financial perfonnance of distilling entities in Kampala, taking a case study of premier distilleries Uganda limited The study aimed at assessing the perfonnance of financial enterprises in Uganda, finding out the how inventory management affects the dimensions of financial perfo1111ance like productivity, profitability, growth and innovation. The study applied both qualitative and quantitative research designs where interviews and questionnaires were used. Data was collected: from both primary and secondary sources. Data was processed and analyzed using fom1al, tables, pie charts, nruTative text ru1d con-ection to find out the relationship between taxation and perfonnance of business enterprises. A total of 200 respondents were considered out of the entire population in Uganda. The findings indicated that the perfo11nru1ce of finar1cial enterprises is affected by stock levels, capital employed, daily expenses, daily sales and the amount of taxes paid annually. Most business owners are aware of the paid, ce1iain of the effects of taxes on the business.