Business Sustainability Driven by Accounting Practices: The Case of MSMES in A Philippine City

Flormando  P. Baldovino,; Paz  L. Bobadilla,; Justiniano  L. Santos,

Business Sustainability Driven by Accounting Practices: The Case of MSMES in A Philippine City

Justiniano L. Santos | Flormando P. Baldovino | Paz L. Bobadilla

Abstract:

The study revealed the impact of accounting practices on the business sustainability of Micro, Small, and Medium Enterprises (MSME) in a Philippine City. The researchers opted to utilize the descriptive design to determine the current accounting practice through a survey coupled with unstructured interviews to ascertain the need to develop an accounting manual. The data were gathered through Google Docs and were evaluated using statistical tools such as frequency distribution, percentage, and weighted average mean. It was revealed that MSME owners are extremely aware of the statutory requirements but are still unable to comply. The lack of basic accounting knowledge and its importance to business sustainability has been cited as one of the factors for non-compliance. With this, the researchers developed an accounting manual that would help the MSMEs monitor and evaluate their operations toward business sustainability, thereby contributing to the country’s economic growth.

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