This study examined the effects of data collection on Return on Assets (ROA) at Pride Microfinance Limited, Kabalagala Branch in Kampala, Uganda. The research employed a cross-sectional survey design with a sample of 85 respondents comprising management staff, loan officers, and data clerks. Data was collected through structured questionnaires and analyzed using descriptive and inferential statistics. Results indicated a strong positive correlation (r = 0.742, p < 0.01) between effective data collection practices and ROA. The findings revealed that accurate customer data collection improved loan recovery rates by 34%, timely data processing reduced operational costs by 28%, and comprehensive data management enhanced decision-making efficiency by 41%. These improvements collectively contributed to a 3.2% increase in ROA over the study period. The study concluded that systematic data collection practices significantly enhanced the financial performance of the microfinance institution through improved risk assessment, reduced default rates, and optimized resource allocation. It was recommended that Pride Microfinance should invest in digital data collection systems, implement regular staff training on data management protocols, establish data quality assurance mechanisms, and integrate real-time analytics platforms to further enhance ROA. The study also recommended periodic audits of data collection processes to ensure consistency and accuracy in financial reporting.