TITLE:
Management Accounting Practices and Profitability of Micro-Businesses in Borongan City, Eastern Samar, Philippines
AUTHORS:
Dymphna Ann C. Calumpiano
KEYWORDS:
Micro-Business, Management Accounting Practices, Profitability
JOURNAL NAME:
Open Journal of Business and Management,
Vol.13 No.6,
November
4,
2025
ABSTRACT: This study investigates the relationship between management accounting practices (budgeting, planning, and control) and profitability among micro-businesses in Borongan City, Eastern Samar, using a descriptive-correlational design with survey data from 306 business owners. Data was analyzed using frequency count, mean and Spearman’s rho to examine correlations. Findings revealed that while some control practices are often practiced, overall budgeting and planning are seldom practiced. Despite these efforts, while estimated annual sales revenue generally exceeded P 100,000, annual net profits were typically below P 50,000, with some businesses earning over P 100,000. The key finding is that there is no statistically significant relationship between the level of these management accounting practices and the profitability of the businesses surveyed. It is recommended that business owners improve their budgeting and planning practices to strengthen management accounting practices. Even though these practices show no significant relationship with profitability, these practices are crucial for improving decision-making, efficient resource allocation, risk management and sustainable business growth. Additionally, the study recommends that the government should implement programs focused on improving financial literacy and management accounting skills among micro-business owners.