The Financial Management Practices of Restaurants in Makati City

Abstract

In today’s industry of business, several factors are considered to make or break a certain enterprise. One of these would be effective financial management. Common sense dictates that financial stability plays an important role in putting up and maintaining any kind of business. The purpose of this study was to assess the level of effectiveness of financial management practices of restaurants, specifically the casual dining, in Makati City.

The data of this study were collected through the modified survey questionnaire and unstructured interview from the managers of restaurants functioning in Makati City. This data was gathered and was tabulated, evaluated, analyzed and interpreted on the basis of frequency and average point value.

The financial management practices of restaurants in terms of financial planning, working capital management, financial reporting, and financial controlling and monitoring were overall assessed as “Effective”. In terms of respondents’ assessment, different perceptions emerged with regard to the level of effectiveness of the financial management practices when grouped according to a number of years in operation. However, there was agreement on perception in the respondents’ assessment on the level of effectiveness of the financial management practices when grouped according to the type of ownership, number of branches, sex, and age. Moreover, when grouped according to number of years operating as a manager, the assessment on the effectiveness of financial management practices in terms of Working Capital Management obtained different perceptions, on the other hand, the assessment on the effectiveness of financial management practices in terms of Financial Planning, Financial Reporting, and Financial Controlling and Monitoring did not differ on respondents' perception.