Analyzing the Recording Practices in Accounting of Micro and Small Businesses: The Case of the Philippines

Abstract

This study delves into the recording practices in accounting within micro- and small businesses, with the aim of addressing the neglect of proper practices due to factors such as limited knowledge and regulatory oversight. In these enterprises, accurate financial reporting is pivotal for informed decision-making, yet it is often impeded by inadequate recording practices. Using methods of qualitative analysis, the research offers insights specific to micro- and small businesses in Zamboanga del Sur, Philippines, illuminating both challenges and opportunities. Eight micro- and small business owners participated in semi-structured interviews, selected through purposive sampling, thereby providing rich data for case study analysis. The findings underscore the struggle of these businesses in maintaining accurate records, with outsourcing emerging as a potential solution. The study concludes by recommending training programs emphasizing proper record-keeping and advocating for government support through mandatory recording seminars. Further research is urged to deepen understanding and inform strategies for improvement in recording practices within micro and small businesses. This comprehensive exploration contributes to the literature by shedding light on a critical aspect of financial management in micro- and small enterprises, ultimately aiming to enhance their operational effectiveness and sustainability.

Keywords

• accounting
• recording keeping
• double entry
• bookkeeping
• small business
• micro business
• philippines