Bookkeeping Practices of Micro and Small Business Enterprises in the Municipality of Bauang, La Union
Keywords:bookkeeping, micro business
In small and mid-sized enterprises (SMEs), bookkeeping emerges as a linchpin influencing operations, investments, and financing decisions. Its impact extends to enhancing the credibility of performance assessments, shaping strategic judgments, and establishing benchmarks for financial objectives. This study embarks on an exploration of the challenges that micro and small businesses encounter in adhering to effective bookkeeping practices within the context of the Municipality of Bauang, La Union.
The study adopts a descriptive research methodology to uncover the nuances of bookkeeping challenges among micro and small enterprises. The research sample encompasses 164 respondents drawn from diverse business classifications, including general merchandise, eateries, vegetable stalls, fish stands, and sari-sari stores. A comprehensive examination of these businesses' bookkeeping procedures is conducted to shed light on prevailing obstacles.
Results and Discussion
The findings underscore that certain SME owners and managers need help with proper bookkeeping practices due to inadequate accounting knowledge and apprehensions about the associated costs. Notably, many enterprises resort to outsourcing bookkeeping tasks. The study highlights the importance of equipping business proprietors with adequate accounting skills to enhance their bookkeeping capabilities and effectively employ them as tools for management and control. The study's findings illuminate a landscape wherein several micro and small enterprise owners and managers grapple with inadequate adherence to sound bookkeeping practices. Essential facets such as proper records maintenance and journal keeping should be addressed due to various factors. These business stakeholders' need for comprehensive accounting knowledge is a significant contributory factor. Furthermore, concerns about the financial implications of engaging professional accountants are identified as a deterrent to robust bookkeeping practices. The study also underscores that a considerable portion of these enterprises choose to outsource their bookkeeping responsibilities.
Conclusion and Recommendations
In conclusion, the study highlights the significance of effective bookkeeping practices for micro and small enterprises in making well-informed business decisions. It is recommended that business owners and managers undergo targeted accounting training. This training would equip them with the necessary knowledge and skills to enhance their bookkeeping capacities and, in turn, utilize them as potent tools for management control.
Going forward, it is imperative to underscore the pivotal role of bookkeeping as an enabler of prudent decision-making within the SME sector. As the business landscape evolves, the continual adaptation and enhancement of bookkeeping practices will remain instrumental in fostering business growth, accountability, and long-term sustainability. Further exploration into the multifaceted impacts of effective bookkeeping across diverse industries is encouraged to enrich our understanding of its far-reaching implications.