Bookkeeping as a Tool for Monitoring the Performance and Growth of a Business: A Survey

Abstract

INTRODUCTION

Bookkeeping has been a great help for businesses. Addressing challenges in financial management and monitoring performance was made possible. Recording of financial transactions including purchases, sales, receipts, and payments became easier. This study focused on this aspect of bookkeeping in businesses specifically on how it contributes to business success.

METHODS

This study employed the qualitative method of research supplemented by statistical analysis of the survey data. This descriptive-analytic design was study applied in this study. Survey questionnaire was facilitated. Data were triangulated, analyzed and interpreted. Simple Focus Group Discussion was also facilitated.

RESULTS

The study revealed that most of the business found in locality of Donsol apply bookkeeping in their operations mainly to aid them in handling their finances and address the possible problems that may arise due to mishandling of financial resources including instability of business too much debt, insufficiency in working capital and business failure. The study found that businesses in Donsol make use of bookkeeping for the purpose of organizing past and present records, keeping track of their income and expenditure and aid them in budgeting. The results also showed that bookkeeping allows businesses to determining their priority and dealing with decent. Businesses saw the importance of bookkeeping through its function both the internal and external users wherein the effective use of bookkeeping avoid scrambled records and paper works. Allowing them to know if their business in losing or gaining money, which inturn will help them in making decisions for future operations of the business.

DISCUSSIONS

Bookkeeping played an important role in operating a business. Whether small, medium or large scale, consistent business reporting and monitoring is a necessity. Accurate bookkeeping is crucial to business for this matter as it gives a clear picture. Of their income and expenses making them aware of their current financial positions and should be practiced by business in the municipality. The data from this study will help them plan and set goals on achieving growth, sustainability and success. Business owners should explore how bookkeeping strategies will help to sustain business growth and apply these to their operations. Businesses should improve the methods of bookkeeping they already use and craft a more suitable method to ensure that their main goal will be attained, business success.