CASH MANAGEMENT PRACTICES OF MICRO, SMALL, AND MEDIUM ENTERPRISES IN THE SECOND DISTRICT OF QUEZON PROVINCE: IMPACT TO PROFITABILITY

The aim of this study was to determine the cash management practices of small, micro and medium enterprises in the 2nd District of Quezon Province and its impact on the profitability of the business. Data were collected from the different micro, small and medium enterprises (MSMEs) in the 2nd District of Quezon with their respective managers, accountants, and accounting staff as respondents. A self-structured questionnaire was formulated to determine the background characteristics of the respondents in terms of age, sex, educational background, highest educational attainment, the position held in the enterprise and length of service. The characteristics of the enterprises studied in terms of form of business, number of years in business, nature of business, person responsible with cash management and number of employees were determined also as well as the cash management practices of MSMEs in the 2nd District of Quezon in terms of methods of financial records keeping as to disbursement, information and communication, accountability, and monitoring. Likewise, the records kept on cash transactions, and ways of investing temporary cash surplus were also determined. In the same manner, the significant difference on the cash management practices when respondents are grouped according to background characteristics and the significant relationship between cash management practices and the profitability of MSMEs in the 2nd District of Quezon was likewise determined. The results of the study were used as a basis in the formulation of a cash management enhancement guide for the small, micro and medium enterprises to manage their cash effectively and optimize their resources.