Financial statements of micro enterprises in Tagbilaran City, Bohol : what does it mean to business owners? /
Jenne Vee N. Delusa, Katty Q. Mulato, Joyce En M. Ponte, Joshua Calil D. Trasona
ABSTRACT
It is well known that small and medium-sized enterprises (SMEs) significantly contribute to sustainable development. Meanwhile, financial reporting is an essential process that all businesses, especially SMEs , must adhere to for monitoring performance, decision-making, and long-term survival of businesses. Accordingly, this research aims to provide an understanding of the perceptions of micro entrepreneurs in Tagbilaran City, Bohol, regarding financial statements. This study specifically measures their level of knowledge on financial statements as well as their perceptions of it in terms of perceived use and importance and the need to employ professional services.
A research-made questionnaire was used by the researchers to collect data from 50 micro firms. With the use of percentages and weighted means, the data were statistically examined. Moreover, the study’s hypotheses were evaluated using Pearson correlation by the Data Analysis function of the Microsoft Excel.
The researchers found that financial statements are essentials to MSE owners because they may help them monitor cash flow and make wise decisions. While the majority of respondents have a thorough comprehension of financial accounting, others still need to. To support business owners and expand operations, professionals must be hired with the inclination of regular training to sharpen enterprise owners’ record-keeping and preparations skills.
College of Business and Accountancy Bachelor of Science in Management Accounting