PAMANTASAN NG LUNGSOD NG MAYNILACOLLEGE OF ACCOUNTANCY AND FINANCEBACHELOR OF SCIENCE IN ACCOUNTANCYA Comparative Analysis of Automated and Manual Accounting System of Micro, Small and Medium Enterprises involved in Wholesale / Retail Industry in Divisoria,Binondo In Partial Fulfillment of the Course Requirements in Methods of Research and Accounting ThesisPresented to:Prof. Josephine P. Yopo, CPA, MBAPresented By:Cabral, Jonnalene Charlone D.Carlos, Jon Venydick L.Ferreras, Elison BraxGorospe, Maria Christine B.Usison, Ricah Ella A.BSA IV-2December 14, 2015
CHAPTER 1INTRODUCTION1.0 IntroductionThis chapter contains the background, purpose, objectives, questions, hypothesis, significance and scope of the study.1.1Background of the studyMicro, Small and Medium Enterprises (MSMEs) sector is considered as one of the major economicgrowth driver of all countries at any rate of development. For instance, about 80% of the labor force inJapan and 50% of workers in Germany are employed in the MSME sector, while here in the Philippines,As per shown in the most recent survey of Department of Trade and Industry, MSMEs contributes almost64.97% of the total jobs generated by all types of business establishments in all sectors and which alsoaccounts for almost 99.6 % of total registered enterprises. But like in any other industry, the MSMEsector is not without challenges. Apart from adding value to the national economy, MSMEs also strive towards sustainability. Throughenhancing their profitability, efficient utilization of available resources and reliable decision makingbased on correct and accurate information in a timely manner, has increased the importance of accountinginformation systems. The effectiveness and efficiency of accounting information system deployed is known to be one of theeconomic factors which are critical to the overall sustainability of MSMEs. According to precedingresearches, accounting information systems that provide relevant, reliable and recent information to anorganization’s management will allow such an organization to be more sustainable (Allah, et al., 2013, pp.262). Thus, it is believed that accounting information systems adopted inside an organization should addvalue, ultimately resulting in the organization to become more sustainable. In the Philippine setting, scholarly works about the adoption of accounting information system are scantyand thus motivated the researchers to pursue this study in MSMEs particularly in Manila City.1.2Statement of the Problem
This study aims to determine the efficiency and effectiveness of automated accounting system ascompared to manual accounting system gathered solely on company’s perception of its accountingperformance. Specifically, the following questions will be answered:Do the MSMEs in Manila view automated accounting system as a significant factor in beingcompetitive with other companies in the same industry?