Home⇛International Journal of Multidisciplinary: Applied Business and Education Research⇛vol. 6 no. 11 (2025)

The Accounting Practices and the Sustainability of Merchandising Businesses in the Municipality of Bulan, Sorsogon, Philippines

Michael B. Bongalonta

Discipline: Education

 

Abstract:

Long-term viability of local enterprises may be affected by fi-nancial management behaviors of its owners. It is in this premise that this study was conducted among merchandising businesses in Bulan, Sorsogon. This study examined the accounting and sus-tainability of these merchandising enterprises to determine and assess accounting practices, identify and assess sustainability, and establish the relationship between accounting practices and sustainability. Correlational research design and mixed-method approach were utilized. Quantitative and qualitative data were gathered and analyzed to gain comprehensive understanding of the phe-nomenon. Descriptive statistics, path analysis, and structural equation modeling were used to evaluate the direction of rela-tionships between variables. The findings revealed that among merchandising businesses in Bulan, Sorsogon the accounting practices were practiced in an inconsistent manner. The most consistently done among these businesses were inventory man-agement and record keeping. Data shows that conducting busi-ness in a manner that leads toward sustainability was practiced “sometimes”. Moreover, inventory management and record keep-ing had highest positive and significant effects on sustainability as shown by path analysis. SEM further verified this strong relation-ship. The study reveals that merchandising enterprises that are more systematic also exhibit higher resilience, financial stability and environmental responsibility. This study proves that sustainability of merchandising busi-nesses is influenced by accounting practices. Implementation of accounting practices, particularly inventory management and records keeping, provide strong foundation for sustainable busi-ness practices. However, due to insufficient attention to analytical and strategic accounting practices, the capacity of the business for growth and competitiveness is constrained. Capacity-building programs with focus on budgeting, financial analysis, and internal control may be conducted to strengthen merchandising enter-prises’ understanding of financial concepts and strategic decision-making. To improve accuracy, transparency, and efficiency in fi-nancial monitoring, organized and digitalized accounting systems particularly focusing on record keeping and inventory manage-ment may be implemented. Sustainability education campaigns and programs may be included in support programs and mentor-ship to businesses with emphasis on best accounting practices which in turn improves profitability as well as environmental and social sustainability.



References:

  1. Ahmed, Z., & Aslam, F. (2018). The role of business laws in sustainable business operations. Journal of Business Law, 23(3), 45–61.
  2. Amoako, G. K. (2013). Accounting practices of SMEs: A case study of Kumasi Metropolis in Ghana. International Journal of Business and Management, 8(24), 73–83. https://doi.org/10.5539/ijbm.v8n24p73
  3. Anwar, S. (2020). Management strategies and business sustainability: A case study of SMEs. Journal of Strategic Management, 31(1), 78–95.
  4. Ariffin, N., Ismail, N., & Ahmad, M. (2022). Internal control practices and their influence on SMEs’ performance. Asian Journal of Accounting and Governance, 17(2), 12–25.
  5. Atrill, P., & McLaney, E. (2020). Accounting and finance for non-specialists (12th ed.). Pearson Education.
  6. Bansal, P., & Song, H. C. (2017). Similar but not the same: Differentiating corporate sustainability from corporate responsibility. Academy of Management Annals, 11(1), 105–149. https://doi.org/10.5465/annals.2015.0095
  7. Berger, P. G., & Jaffee, D. (2020). Legal frameworks and their impact on business longevity. Journal of Business and Economics, 39(2), 112–130.
  8. Byrne, B. M. (2016). Structural equation modeling with AMOS: Basic concepts, applications, and programming (3rd ed.). Routledge.
  9. Cengiz, E., & Duman, B. (2021). The impact of accounting practices on business sustainability. Journal of Accounting and Business Research, 42(4), 193–210.
  10. Elkington, J. (1997). Cannibals with forks: The triple bottom line of 21st century business. Capstone Publishing.
  11. Fatoki, O. (2014). The financial literacy of micro entrepreneurs in South Africa. Journal of Social Science, 40(2), 151–158.
  12. Jenkins, H. (2009). A ‘business opportunity’ model of corporate social responsibility for small- and medium-sized enterprises. Business Ethics: A European Review, 18(1), 21–36. https://doi.org/10.1111/j.1467-8608.2009.01546.x
  13. Karim, N. A., & Chowdhury, T. (2014). The effect of accounting practices on the performance of SMEs: A study in Bangladesh. International Journal of Business and Technopreneurship, 4(2), 255–272.
  14. Kieu, N. (2020). Financial literacy and SME performance in developing countries: Evidence from Vietnam. Asian Economic and Financial Review, 10(3), 321–336.
  15. Kline, R. B. (2016). Principles and practice of structural equation modeling (4th ed.). Guilford Press.
  16. Korber, S., & McNaughton, R. B. (2018). Resilience and entrepreneurship: A systematic literature review. International Journal of Entrepreneurial Behavior & Research, 24(7), 1129–1154. https://doi.org/10.1108/IJEBR-10-2016-0356
  17. Latan, H., Jabbour, C. J. C., & Lopes de Sousa Jabbour, A. B. (2018). ‘Whistleblowing triangle’: Framework and empirical evidence from the Brazilian banking industry. Journal of Business Ethics, 152(3), 573–588.
  18. Lozano, R. (2018). Sustainable business models: Providing a more holistic perspective. Business Strategy and the Environment, 27(8), 1159–1166. https://doi.org/10.1002/bse.2059
  19. Nyabwanga, R. N., Ojera, P., Otieno, S., & Nyakundi, A. (2013). Effect of working capital management practices on financial performance: A study of small-scale enterprises in Kisii South District, Kenya. African Journal of Business Management, 7(18), 1121–1131.
  20. Okafor, M. T., & Okorie, O. C. (2020). Financial management practices and the sustainability of small businesses in Nigeria. Business and Finance Journal, 29(2), 112–129.
  21. Rahman, M. M., Uddin, M. J., & Lodorfos, G. (2021). The barriers and opportunities of SMEs’ financial sustainability: Evidence from developing economies. Sustainability, 13(4), 1901. https://doi.org/10.3390/su13041901
  22. Sople, V. V. (2021). Supply chain management: Text and cases (3rd ed.). Pearson India.
  23. Vignesh, S., & Kumar, V. (2019). Strategic management for business growth: A review of approaches. International Journal of Business Studies, 28(3), 88–102.
  24. Wadesango, N., Mhaka, C., & Wadesango, V. (2019). The impact of accounting software utilization on SMEs’ financial performance. Academy of Accounting and Financial Studies Journal, 23(2), 1–12.
  25. Warren, C. S., Reeve, J. M., & Fess, P. E. (2019). Principles of financial and managerial accounting (27th ed.). Cengage Learning.
  26. Zimmerman, J. L. (2019). Accounting for decision making and control (10th ed.). McGraw-Hill Education.

Tools


Copyright © 2026  KITE Digital Educational Solutions |  Exclusively distributed by CE-Logic