Title: Bookkeeping Practice And Its Influence of Micro Businesses' Operational Profitability
Authors: Ma. Cassandra M. De Guzman
Ella Jan B. Alberto
Althea Shane B. Galang
Sofia Yzabelle E. Manalang
Jilian Audrey L. Tongol
Jason Y. Carreon
CPA
MBA
Alan Y. Cabaluna
Ph.D.
Volume: 10
Issue: 7
Pages: 376-384
Publication Date: 2026/07/28
Abstract:
This study examined the influence between bookkeeping practices and the operational profitability of micro retail businesses in the City of San Fernando, Pampanga. Using a quantitative-correlational research design, data were collected from 119 owners and managers of selected micro retail businesses through a modified survey questionnaire. The study assessed bookkeeping practices in terms of recording daily transactions, maintaining financial records, and preparing basic financial reports, and determined their relationship with operational profitability in terms of revenue, operating expenses, and net income. The findings revealed that most respondents practiced bookkeeping at a moderate to high level, particularly in recording sales and expenses. However, the preparation and use of complete financial reports were less consistently observed. The results further showed a significant positive relationship between bookkeeping practices and operational profitability, indicating that businesses with more organized and consistent financial record-keeping tended to achieve better financial performance. The study concludes that effective bookkeeping plays an important role in improving the profitability and sustainability of micro retail businesses. By maintaining accurate financial records, business owners are better able to monitor operations, manage expenses, and make informed financial decisions. The findings highlight the importance of strengthening bookkeeping practices and promoting basic accounting knowledge among micro entrepreneurs to support long-term business success.