Philippine E-Journals

Bookkeeping Practices of Small and Medium Enterprises (SMEs)

James Quińonez Grefalde

Discipline: Business

 

Abstract:

This study surveyed the small and medium enterprises (SMEs), specifically, it sought to assess and determine the SMEs business profile and its bookkeeping practices applied to their respective enterprise. The study used a descriptive research design through an adopted and closed-ended structured questionnaire. The respondents are the SMEs in Tandag City, Surigao del Sur specifically the single proprietors. The study found out that the most of the SMEs business were engaged in trading, their enterprise exist within 3-7 years, and earned an increasing yearly income. As to the bookkeeping practices, most of SMEs employed an outsourced bookkeeper. The outsourced bookkeeper prepares monthly financial statements and kept records such to include book of accounts and sales book as well as monthly and quarterly tax reports. Most of SME owners have lack of knowledge and no formal training in handling bookkeeping, and encountered cashflow problem due to lack of financial literacy and no adequate bookkeeping practices. Therefore, most of the SMEs are dependent from the services rendered by an outsourced bookkeeper as an attractive and beneficial employment due to low cost and lack of expertise in bookkeeping functions. Hence, most of SME owners need to undergo a bookkeeping training for them to have enough knowledge, enhance and equip their skills in bookkeeping as management tools and control.