Bookkeeping Practices and Challenges Encountered by Small and Medium Enterprises (SMEs) in a Municipality

Small-Medium Enterprises are the backbone of social-economic progress and contribute intensely to achieving the fundamental goals of any national economy. Hence, SMEs must have well-established bookkeeping practices to help the enterprise in achieving long-term growth and maintain a progressive financial condition. In connection with this, this study surveyed the 152 Small and Medium Enterprises (SMEs) located in Tayabas. Specifically, it aimed to determine the characteristics of SMEs, their bookkeeping practices, and the challenges they encountered. Results show that majority of the SMEs were sole proprietorships, and most of them were in their early stages of operation, with less than five employees. Most SMEs are owned by women between the ages of 41-45. More than half of the owners and managers had a bachelor's degree. In terms of bookkeeping practices, the majority of SMEs outsource bookkeepers, use single entry, accrual basis, and record transactions manually. In terms of Bookkeeping records, the majority of the respondents are keeping the business receipts. Furthermore, the findings show that bookkeeping practices have a significant association with the challenges encountered by SMEs owners.