Home⇛Psychology and Education: A Multidisciplinary Journal⇛vol. 48 no. 4 (2025)

Micro Business Owners' Bookkeeping Knowledge and Practices

Daisy Ibieza | Mia Louise Pineda | Kyle Sam Bico | Liyan Luise Binueza | Ma. Theresa Gandas | Revenlie Galapin | Kissy Cariaga

Discipline: others in business and management

 

Abstract:

Micro businesses serve as vital drivers of local economies, providing employment, generating income, and contributing to community development. Their sustainability, however, largely depends on proper financial management, with bookkeeping playing a crucial role in ensuring efficiency and long-term growth. This study investigates the bookkeeping knowledge and practices of micro business owners in Jordan, Guimaras, Philippines, during the year 2024. Using a descriptive-correlational research design, the study involved 120 micro business owners selected through purposive sampling. A researcher-made questionnaire served as the primary data collection tool. Data were analyzed using statistical methods such as frequency count, Mann-Whitney U test, Kruskal-Wallis H test, and Spearman's Rho. Findings revealed that most microbusiness owners are aged 30 years old and below, predominantly female, and college graduates. Monthly income levels broadly range from ?10,001 to ?20,000, with the majority operating grocery businesses for 1 to 2 years. Results revealed that 41.67% of respondents demonstrated high bookkeeping knowledge, 30% very high, and 28.34% exhibited low to moderate knowledge. Bookkeeping practices were generally excellent, with 99.2% keeping business and personal assets separate and 95.8% conducting regular reviews of credit accounts. Age (H = 8.004, p = .046), educational attainment (H = 12.917, p = .005), and monthly income (H = 22.397, p = .000) significantly influenced bookkeeping knowledge, whereas only educational attainment (χ² = 8.291, p = .040) significantly affected bookkeeping practices. A moderate positive correlation was found between bookkeeping knowledge and practices (r = .328, p = .000), indicating that higher knowledge enhances effective bookkeeping behavior. The study underscores the importance of education and training in improving bookkeeping efficiency. Recommendations include conducting workshops and seminars on bookkeeping, integrating financial management programs for micro businesses, and fostering peer mentoring among business owners to promote knowledge sharing and sustainable practices.



References:

  1. Adela, V., Agyei, S., Frimpong, S., Awisome, D., Bossman, A., Abosompim, R., Benchie, J., & Ahmed, A. (2024). Bookkeeping practices and SME performance: The intervening role of owners’ accounting skills. Heliyon, 10(1),  https://doi.org/10.1016/j.heliyon.2023.e23911
  2. Adeyemi, M. S., & Akanji, A. A. (2020). Role of bookkeeping on sustainability of small and medium enterprises (SMEs) in Nigeria: A case study of selected SMEs in Osun State. International Journal of Academic Management Science Research, 4(5), 140–154. https://doi.org/10.4172/2169-026X.1000216
  3. Aguila, J., Garcia, M., Go, S., Magsombol, R., & Pagana, F. (2022). Bookkeeping practices and challenges encountered by small and medium enterprises (SMEs) in a municipality (Undergraduate thesis). Enverga University, Lucena City, Philippines.
  4. Belen, A., Atilano, A., Fajarda, C., Falcunitin, J., & Manongsong, J. (2024). Small and Midsize Enterprises Challenges in Bookkeeping and Tax Compliance. Asia Pacific Journal of Management and Sustainable Development. https://doi.org/10.70979/cslb4695
  5. Borromeo, A. S., Cervantes, R. J., & Sumicad Jr, E. H. (2024). Analyzing the Recording Practices in Accounting of Micro and Small Businesses: The Case of the Philippines. Review of Business and Economics Studies, 12(1), 70-80. https://doi.org/10.26794/2308-944X-2024-12-1-70-80  
  6. Cadiao, M. B. (2025). Tax knowledge, bookkeeping practices, and financial performance of micro-enterprises: Basis for an enhance tax compliance framework. International Journal of Research Studies in Management. 13 (5), 181-190. https://doi.org/10.5861/ijrsm.2025.25068 
  7. Casas, C., Cariaga, E., Adlawan, K., Batingal, A., & Sumicad, E. (2024). Exploring the Bookkeeping Practices of Family-owned Business: A Case Study of Carriaga Traders Mart. Financial and credit systems: prospects for development. https://doi.org/10.26565/2786-4995-2024-1-02
  8. Chau, H., & Liu, K. (2020). Development of Accounting Practice in Various Approaches in the Field of Science. Journal La Bisecoman, 1(6), 1-12. https://doi.org/10.37899/journallabisecoman.v1i6.271
  9. Christopher, S.E. (2022).Emerging Trends in Contemporary Accounting - A Comprehensive Study. REST Journal on Banking, Accounting and Business. http://doi.org/10.46632/jbab/1/4/9
  10. Creswell, J. W. (2023). Research design: Qualitative,quantitative, and mixed methods approaches (5th ed.).Sage Publications.
  11. Daniel, K. (2023). The Role of Bookkeeping on the Success of Business Enterprises in Mbarara Municipality. SSRN Electronic Journal. https://doi.org/10.2139/ssrn.4562634
  12. Dobie, A., & Oldroyd, D. (2020). Bookkeeping. The Routledge Companion to Accounting History. https://doi.org/10.1017/cbo9781107050518.013
  13. Figueroa, D., De Guzman, D., Gonzales, A., Guerrero, M., & Pimentel, B. (2024). Micro Enterprises’ Level of Awareness and Intention to Avail Provisions of BMBE Act of 2002, Magna Carta for MSMEs and Go Negosyo Act. International Journal of Research and Innovation in Social Science. https://doi.org/10.47772/ijriss.2024.803063
  14. Grefalde, J. Q. (2020). Bookkeeping Practices of Small and Medium Enterprises (SMEs). SMCC Higher Education Research Journal, 7(1). http://dx.doi.org/10.18868/sherj7j.07.010120.06
  15. Judijanto, L., Hendra, J., & Islam, A. (2025). The Role of MSMEs in Realizing the Sustainable Development Goals (SDGs). West Science Business and Management. https://doi.org/10.58812/wsbm.v3i01.1746
  16. Lumumba, C. A., & Aila, F. (2022). Influence of bookkeeping practices on financial performance of micro enterprises (MEs) in informal settlements of Kisumu City, Kenya. International Journal of Research and Innovation in Social Science
  17. Micabalo, K., Poliquit, W., Pondare, R., Idjao, J., Vilbar, M., Pendon, Y., & Hitutuane, Y. (2022). Analysis Of Bookkeeping Practices And Its Impacts On The Growth Of Micro And Small Enterprises In Central Visayas, Philippines. International Journal of Research in Commerce and Management Studies. 4 (6): 75-91 https://doi.org/10.38193/ijrcms.2022.4604
  18. Nwosu, K., & Umeh, A. (2021). Understanding Small Business Contribution to the National Development in the Philippines. International Journal of Science and Management Studies (IJSMS). https://doi.org/10.51386/25815946/ijsms-v4i4p105
  19. Nyathi, M., & Benedict, O. H. (2017). An analysis of bookkeeping practices of micro-entrepreneurs in the retail clothing industry in Cape Town, South Africa. Journal of Entrepreneurship & Organization Management, 6(2), 1–6. https://doi.org/10.4172/2169-026X.1000216
  20. Obrero, N., & Garcia, D. (2022). Evaluating The Entrepreneurial Performance Of Micro-Enterprises In The Bicol Region, Philippines. Advanced International Journal of Business, Entrepreneurship and SMEs. https://doi.org/10.35631/aijbes.413001
  21. Tumba, N. J., Onodugo, V. A., Akpan, E. E., & Babarinde, G. F. (2022). Financial literacy and business performance among female micro-entrepreneurs. Investment Management and Financial Innovations, 19(1), 156–167. https://doi.org/10.21511/imfi.19(1).2022.12  
  22. Penyusunan, P., Operasional, M., Dan, P., Kelompok, A., Di Sembalun, T., Barat, N., Febriana, W., Ayu, R., Aryani, I., Rosanensi, M., , M., & Yunita, L. (2022). Pendampingan Penyusunan Manajemen Operasional Pembukuan dan Administrasi Kelompok Tani di Sembalun, Nusa Tenggara Barat. JILPI : Jurnal Ilmiah Pengabdian dan Inovasi. https://doi.org/10.57248/jilpi.v1i2.18
  23. Premarathne, W., Wickramasekara, G. D. A., Imalie, A. D. K., & Priyanka, P. D. D. K. (2025). Bookkeeping challenges faced by micro-enterprises: A qualitative study of the retail sector in Matara District, Sri Lanka. International Journal of Finance and Management Research, 7(1). https://doi.org/10.36948/ijfmr.2025.v07i01.34610
  24. Ramos, L., & Santos, P. (2020). The Relationship Between Bookkeeping Practices and Financial Performance of Small Businesses in Davao. Asian Journal of Accounting Research, 15(1), 65-82.
  25. Taber, K.S. (2018) The Use of Cronbach’s Alpha When Developing and Reporting Research Instruments in Science Education. Res Sci Educ 48, 1273–1296. https://doi.org/10.1007/s11165-016-9602-2
  26. Wanjala, S.N, Bwisa, H.M, Wandra, R.W, Wanyama, K.W & Wanjala, A.S (2014). Effect of Bookkeeping Management Practices on Business Performance of Micro and Small Butchery Enterprises in Kimilili SubCounty, Bungoma, Kenya. The International Journal Of Business & Management. 2(9).
  27. Wati, M., Syafina, L., & Nurwani (2024) MSME Development Through Simple Bookkeeping, Financial Management and Internal Control Training. Quantitative Economics and Management Studies (QEMS). https://doi.org/10.35877/454RI.qems2676

Tools


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