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While recognizing the potential roles of Small and Medium Enterprises, the ability of it in playing these roles depends largely on how they perform in the business. There are numbers of factors influencing the performances of Small and Medium Enterprises Enterprises including legal and regulatory framework, infrastructure infrastructure and busine business ss deve develo lopme pment nt servic services es,, limite limited d acces access s of Small Small and Mediu Medium m Enterpri Enterprises ses to finance, finance, effecti effective ve and poorly poorly coordin coordinated ated institut institution ional al support support framew framework ork,, recor record d keep keeping ing etc. etc. owe oweve ver, r, the focal focal point point of this this paper paper is concerned with Small and Medium Enterprises! record keeping strategies. "t is important therefore to recognize the strong influence of record keeping attached to Smal Smalll and and Medi Medium um Ente Enterp rpri rise ses! s! perf perfor orma manc nces es and and deve develo lopm pmen ent, t, the the importance of record keeping cannot be reduced in any means. "n principle, record record keep keeping ing is the the proc process ess of record recording ing trans transact actio ions ns and and event events s in an account accounting ing system. system. Since the principl principles es of accounti accounting ng rely on accurat accurate e and thorough records, record keeping is the foundation of accounting. #roper #roper record record keep keeping ing is import importan antt on susta sustaini ining ng and and e$pan e$pandi ding ng a business. Without it, one runs the risk of hitting cash flow crunches, wasting money, and missing out on opportunities to e$pand. Background of the Study
%ipa, officially the &ity of %ipa '(ilipino) %ungsod ng %ipa*, is a first class component city in the province of +atangas. "t is one of the three cities in +atangas 'the others are +atangas &ity and Tanauan*. "t is located - kilometres
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'- mi* south of Manila and has a population of //0,/-1 people according to the 0234 census. (urthermore, %ipa &ity has many Small and Medium Enterprises 'SMEs* stratified into agri5business, manufacturing, retailing, service, wholesaling, and other nature of business. The city!s agricultural products such as poultry, meat and dairy, are supplied to neighbouring towns and provinces. Three malls which include SM &ity %ipa, 6obinsons #lace %ipa and (iesta World Mall provide vigour to the economic activities in the city aside from the public market. (amous food chains line the city proper as well as in the e$pansion area of the urban core. The city has attracted 13 domestic and foreign bank offices which makes it a suitable financial hub not only of the province. +ehind the successful enterprises in %ipa &ity are the problems encountered by them especially the small and medium enterprises in terms of record keeping. +ased on the interview conducted by the present researchers, the problems encountered by the small and medium enterprises in %ipa &ity are lack of knowledge in proper record keeping, cost of record keeping, being time consuming of record keeping and the level of awareness towards the importance of proper record keeping. 7ood records will help to monitor the progress of the business, prepare financial statements, identify sources of income, keep track of deductible e$penses, keep track of basis in property, prepare ta$ returns and support items reported on ta$ returns.
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6esearchers choose the topic 89ssessment of +usiness 6ecord :eeping Strategies of Small and Medium Enterprises in %ipa &ity; to find out the record keeping strategies utilized by small to medium enterprises. %ipa &ity was chosen because there are many small and medium enterprises on the said city as their sub
This study determines the record keeping strategies by Small and Medium Enterprises 'SMEs* in %ipa &ity. Specifically, this study aimed to answer the following =uestions) 3. What is the profile of the business in terms of) 3.3 >ature of +usiness? 3.0 (orm of +usiness?
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3./ &apitalization? 3. @ears in operation? and 3.4 >umber of employeesA 0. ow may the record keeping strategies of Small and Medium Enterprises be assessed in terms of) 0.3 #olicy Strategy? 0.0 Besign Strategy? 0./ Standard Strategy? and 0. "mplementation StrategyA /. "s there any significant difference on the respondents! assessment when grouped according to profile variablesA . What "nformation, Education and &ommunication material maybe produced on record keeping strategies for SMEsA Theoretical Framework
6ecord keeping is the process of recording transactions and events in an accounting system. "t is the maintenance of a history of oneCs activities, as financial dealings by entering data in ledgers or
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Figure 1.1 Record Keeping Strategies odel
9ccording to >ational 9rchives of 9ustralia '0234*, B"6:S methodology is a structured process for designing and implementing recordkeeping systems. "t is an eight5step process in which all aspects, or as many as possible, of a business are studied in order to achieve complete records management practice. "t is based on traditional system design methodologies, but has been adapted to meet recordkeeping ob
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Enterprises. The Step E identifies strategies for satisfying recordkeeping re=uirements, which may include adopting policies, procedures and practices, designing new systems, implementing systems in a way which satisfies a recordkeeping re=uirement, or adopting standards. The policy strategy involves using policy or other forms of organizational rules as a means to meet recordkeeping re=uirements. The design strategy enables to design or redevelop recordkeeping systems in ways that makes the organization automatically meet its recordkeeping re=uirements. The standards strategy concerns the use of technical standards as means of ensuring that recordkeeping re=uirements are met.
The
implementation
strategy
involves
considering
the
way
of
implementation on record keeping systems in the organization. !onceptual Framework
The purpose of this study is to assess the business record keeping strategies of the SMEs in %ipa &ity as perceived by the owners of the businesses. To further elaborate the problem, the researchers have come up with a conceptual framework.
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"nput
Process
#rofile of the +usiness >ature of business (orm of business &apitalization @ears in the operation >umber of employees • • • • •
6ecord :eeping Strategies • • • •
#olicy Strategy Besign Strategy Standard Strategy "mplementation
Survey uestionnaires Fnstructured "nterview Bata analysis using statistical techni=ues "nterpretation of Bata
#utput
"nformation, Education and &ommunication material on record keeping strategies for Small and Medium Enterprises
Figure1.$ "nput%Process%#utput odel
The "nput5#rocess5Dutput, also known as "#D model, is a fundamental model and conceptual schema of a general system. (igure 3.0 shows that the program input consists of the profile of the business in terms of nature of business, form of business, capitalization, years in the operation and number of employees and the record keeping strategies in terms of policy strategy, design strategy, standard strategy and implementation strategy. Through the process of distribution of survey =uestionnaires, unstructured interviewing and data analysis using statistical treatment, the needed information for the assessment of business record keeping of selected Small and Medium Enterprises are answered. The researchers also produced an "nformation, Education and &ommunication material on record keeping strategies for Small and Medium Enterprises, particularly a module, which serves as an output of their study.
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Research &ypothesis
This research study is pursued with the desire of testing that) o) There is no significant difference in the assessment of business record keeping strategies of selected Small and Medium Enterprises when grouped according to its business profile. Scope and 'imitations of the Study
The researchers started this study on the second semester of 0231. "t deals on the assessment of business record keeping strategies of selected Small Medium Enterprises in %ipa &ity. This study is limited to %ipa &ity alone since it deals primarily on the business record keeping strategies of selected Small Medium Enterprises in the area. %ipa has many business establishments and are growing in terms of Small and Medium Enterprises 'SMEs* which will help the researchers in their present study. The researchers narrow the study to 3G2 respondents, the business owners or book keepers of Small and Medium Enterprises. "t is intended to such since they are the ones responsible to maintain financial records for their company or organization. The creation of financial transactions which includes posting information to accounting
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Simple random sampling was used to distribute the =uestionnaires among the respondents. The researchers determine the profile of the business in terms of nature of business, form of business, capitalization, years in the operation and number of employees. "t was also determine the different record keeping strategies in terms of policy strategy, design strategy, standard strategy and implementation strategy. The researchers are limited in e$tent investigation and information in terms of interviews, research works and survey =uestionnaires assessing the perception of the respondents. The =uestionnaires for the respondents are also limited to the =uestions pertaining to the assessment process. "n order to assure manageability of the collected data, the =uestionnaire did not include open5ended response items. Significance of the Study
This study provided information regarding the business record keeping strategies of small and medium enterprises in %ipa &ity. The study is believed to be significant and beneficial to the following) To the small and medium enterprises, this study will help them to know the importance of a good business record keeping for the development, innovation and progress of their foundation as enterprises. To the businessmen, it will help them to develop their enterprises into a competitive one. This can also be their guide to a continuous capability in record keeping.
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To the municipality of %ipa &ity, this will enhance the operations, strategies and techni=ues perform by the business located in this area. To the +atangas State Fniversity, they may also benefit from the results of this study as it will serve as a reference material for students, researchers and faculty alike in relying information that will provide deeper knowledge about the record keeping strategies of the businesses. To 9ccounting students, this study would provide as additional information for further researches being conducted by students of this college. Thus, it would increase their awareness in business record keeping strategies of small and medium enterprises. To the present researchers, this study serves as their guide in studying and understanding the business record keeping strategies as well as how it must be assessed. This study also helps them to have a broader knowledge of some related areas of concern. To the future researchers, this study is e$pected to provide insights that will help in their sources of information about the assessment of business record keeping strategies of small and medium enterprises. This study will be able to provide lots of information that will be helpful in their research. (efinition of Terms
The following terms are defined both conceptually and operationally definition to help the researchers.
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)ssessment. "t is the process of documenting, usually measurable terms,
knowledge, skills, attitudes and beliefs '9goncillo, 0221*. "n this study, it refers to the evaluation of the business record keeping practices of selected Small and Medium Enterprises. Business #peration. These are internal factors that lie within the scope
and operations of a firm and hence within the control of management 'Henugopal 0221*. "n this study, business operations are needed to be recorded to keep track on the profitability of the business. (esign Strategy. This is to design or redevelop recordkeeping systems in
ways that enable the organization to automatically meet its recordkeeping re=uirements 'Macintosh, 0234*. "n this study, it is a record keeping strategy that designs systems for record keeping. Finance. This is the art and science of managing money '7itman, 0232*.
"n this study, it is one of the factors influencing the performance of Small and Medium Enterprises in general. "mplementation Strategy. "t involves considering the way in which a
business implement recordkeeping systems in their organization 'Macintosh, 0234*. "n this study, it is a record keeping strategy that implements systems for record keeping. *ournal. "t is a business diary in which all financial data pertaining to the
day to day business transactions of a firm is recorded using double5entry
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bookkeeping system '+allada, 023/*. "n this study, it can be one of the records that can be kept by the record keeper. Policy Strategy. "t involves using policy or other forms of organizational
rules as a means to meet recordkeeping re=uirements ' Macintosh, 0234*. "n this study, it is a record keeping strategy that provides system policies for record keeping. Record keeping. "t is a mechanical task involving the collection of basic
financial data '+allada, 023/*. "n this study, it refers to an important activity of a business to know whether it is earning profit or operating in loss. Small
and
medium
enterprises. These
are
any
businesses
activitiesIenterprises engaged in industry, agri5businessesIservices, whether single proprietorship, cooperative, partnership, or corporation whose total assets, inclusive of those arising from loans but e$clusive of the land on which the particular business entity!s office, plant and e=uipment are situated, must have value falling under the following categories) +y asset size) Small J #/,222,223 J #34,222,222 and Medium J #34,222,223 J #322,222,223? +y number of employees) Small J 325GG employees and Medium J 32253GG employees 'BT", 0234* "n this study, they served as the respondents of the study engaged in different industries, with an asset size of #/,222,223 J #34,222,222 for the small enterprises and #34,222,2223 J #322,222,222 for the medium enterprises.
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Standards Strategy. This strategy concerns the use of technical
standards as means of ensuring that recordkeeping re=uirements are met 'Macintosh, 0234*. "n this study, it is a record keeping strategy that uses standards for proper record keeping. Transaction. This is a business deal) an occurrence in which goods,
services, or money is passed from one person, account, etc., to another 'Merriam5WebsterKs %earnerKs Bictionary, 0231*. "n this study, transaction should regularly record to keep an eye on activities that may affect the business.
