Bookkeeping Practices and Business Performance among Small and Medium Enterprises in Agusan Del Sur, Mindanao, Philippines

Abstract

Bookkeeping serves as the backbone of financial transparency and sustainability among small and medium enterprises (SMEs), yet many in developing economies face challenges in maintaining accurate financial records. This study examined the relationship between bookkeeping practices and business performance among SMEs in Agusan del Sur, Philippines, emphasizing the importance of effective financial management in fostering growth and competitiveness. Using a descriptive–correlational research design, data were collected through a validated survey questionnaire administered to SME owners and managers. Descriptive and inferential analyses were employed to determine the extent of bookkeeping practices and their influence on business performance. Results revealed that SMEs generally demonstrated a high level of bookkeeping practices, particularly in recording daily transactions and preparing financial reports, while the use of accounting software was only moderate. Business performance was also rated high, especially in profitability and operational efficiency. Furthermore, a significant positive relationship was found between bookkeeping practices and business performance, suggesting that accurate record-keeping enhances decision-making, profitability, and operational stability. The findings highlight the essential role of systematic bookkeeping in ensuring SME success and recommend that local government units and business support agencies promote continuous training on computerized bookkeeping and financial literacy to strengthen entrepreneurial financial capability