Master Thesis

In Small Medium Enterprise (SME) business operations, the development of a sound accounting information system is indispensable to ensure the effective and efficient use of their resources and to provide accurate and reliable information for timely and sound decisions. Likewise, accounting services and their functions have very important roles in the improvement of the SMEs business needs and their business performance towards profitability and successful cost management. This study endeavored to determine the effectiveness of the accounting services among SMEs in the City of Parañaque towards streamlining profitability and cost management. The data were gathered from the owners or managers of the said business firms located at the eight ( barangays of District 2 of the stated city as per BPLO 2019 List of SMEs. It delved on quantitative descriptive and evaluative method using self-constructed survey questionnaire, one-on-one interview and actual observations as the primary means of gathering the data among 375 owner-manager of those SMEs. Results showed that all the accounting services were highly effective and showed significant relationship with the SMES' business performance. Although, the cost of maintaining those services impeded such sustainable operations. Therefore, those businesses having sound accounting information system and quality accounting structure would certainly obtain better business performance in entrepreneurial aspects, as well as in achieving their business goals. As such, the proposed cost and profitability management model may address identified constraints while sustaining such goals.