Small and Midsize Enterprises Challenges in Bookkeeping and Tax Compliance

Angel Joy  C. Atilano,; Atasiah Kathrin  M. Belen,; Cecilia  Fajarda,; Jiexel  L. Manongsong,; Joanna Marie  M. Falcunitin,

Small and Midsize Enterprises Challenges in Bookkeeping and Tax Compliance

Atasiah Kathrin M. Belen | Angel Joy C. Atilano | Cecilia Fajarda | Joanna Marie M. Falcunitin | Jiexel L. Manongsong

Discipline: accounting

Abstract:

Small and Midsize enterprises (SMEs) play a crucial role in many nations by contributing to employment, income generation, poverty reduction, and economic development. This study aimed to assess the challenges encountered by Small and Midsize Enterprises in bookkeeping and tax compliance. It used quantitative descriptive research design to investigate the accounting practices of 268 small and medium-sized enterprises (SMEs) in Batangas City using survey questionnaire. The data was encoded, tallied, and interpreted using various statistical tools such as frequency and percentage distribution. All data was treated using a statistical software called SPSS version 28 to further interpret the results of the study using an alpha level of 0.05. Majority of the respondents were operating for 1-3 years, merchandising, sole proprietor and with in-house accounting department. Resource constraints, compliance practices, and knowledgeable factors often affect the bookkeeping and tax compliance of SMEs in Batangas City. There are highly significant differences in responses when grouped according to profile variables related to years in operation, form of business ownership, and accounting department. While significant in resource constraints and knowledge, there is no significant relationship for compliance practices related to the nature of business. A proposed strategy was developed to address the challenges encountered.

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