Accounting Challenges and Outsourcing Among Start-up Food Businesses in Selected Localities in Philippine Province

This study aimed to investigate the accounting challenges encountered by start-up food businesses and the factors influencing their decision to outsource accounting functions. Using correlational descriptive design and quantitative research method, the researchers utilized a survey questionnaire in gathering the responses using a Likert scale. The researchers used a purposive sampling, with a total of one hundred twenty-nine (129) respondents which are the owner/s, manager or an individual who handles financial records and finances of the start-up food businesses. Results show that lack of expertise and abilities in accounting, poor record management, and difficulty in preparing financial statements and tax reports are among the common accounting challenges encountered by start-up food businesses. These problems are compounded by organizational factors, such as the lack of competent in-house staff and the need for cost-saving measures. The study also found that the number of employees and years of operation of the business play a considerable factor in the accounting challenges encountered. Furthermore, start-up businesses who face difficulties in accounting implementation are more likely to outsource an accounting function. Based on the study’s findings, the researchers recommend that start-up business owners use accounting software, develop a budget and revenue projection, and keep an accurate business record to avoid future consequences. They should also consider outsourcing an accounting function to reduce hiring costs and avoid error-prone entries.