PROBLEMS ENCOUNTERED ON MANUAL ACCOUNTING FUNCTIONS: BASIS

FOR PROPOSED TECHNOLOGICAL-BASED ACCOUNTING PROGRAM FOR

BUSINESSES IN LEMERY TOWN PROPER

CHAPTER i

THE PROBLEM AND ITS BACKGROUND

This chapter presents the overview and nature of the study, the problem

Introduction

Technological advancements continues to change the way things are carried out

in this world nowadays. Different works and fields are greatly impacted by the

technology due to its functions. One of the fields that are continuously experiencing

growth and change in their own system is the field of accounting. As all people know,

performing accounting work is very detailed and accuracy in recording as well as

reporting is greatly valued. But since various technologies are introduced over the

years, accountants and businessmen now learned that technology has a positive effect

in accounting applications because calculations done by a computer program

experience very few errors and also because of other reasons.

Performing accounting is already present on the early times. People used stones

to keep track of their various calculations for their business. Years later, abacus were

then introduced to people to make an easy calculations followed by the introduction of

calculators. As the technology improves, the speed of performing accounting by the

accountants also increased. However, although these mentioned machines were

helpful, accountants had to do a load of works on papers since accounting does not end

in just simply computing. Making analysis, reports and checking transactions are still

needed since it has become a part of performing accounting. This were all changed

ever since computers and other softwares intended for accounting were invented, which

became a major breakthrough in the technology.

However, using computers and softwares in performing accounting are

seemingly only used to places that are on the center of commerce such as places like

Manila and other cities in the Philippines. Little did the other accountants and other

business owner knows, having these things could make their work easier and errors

might be lessened. Performing the work will not be also time-consuming since it is used

by technology and accuracy in the results will also be guaranteed.

With time-consuming being mentioned on the scenario above, the traditional

accounting method consumes most of the accountant’s time. This is because of the

reason that checking transactions and computing digits at once does not really end after

doing it once. The accountants must check and be assured that their works will not

encounter some errors that might affect the business. In addition, having a long and

slow transactions is a sign that a business must adapt an advancement on performing

technologies.

In connection with the scenario above, the student researchers decided to study

the problem by assessing the different accounting program that can be used by the

businesses in Lemery Town Proper. As a time-conscious student researchers, this

study can be a tool to help everyone who works in the said field to save time on doing

their works for the betterment of the business’ performance as well as their own

performance. After assessing, the student researchers will propose the programs to

these businesses as a part of their action plan since the student researchers aims to

help the accountants and bookkeepers in Lemery Town Proper to make their work

easier and effective.

Statement of the Problem

The study entitled “Problems Encountered on Manual Accounting Functions:

Basis for Proposed Technological-Based Accounting Program for Businesses in Lemery

Town Proper” is conducted to assess the different accounting programs that can be

used in performing accounting that will be proposed for the businesses in the mentioned

place.

Specifically, this sought to answer the following questions:

1. What is the profile of the business in terms of:

1.1. capitalization;

1.2. nature of operation;

1.3. form of business organization;

1.4. years in operation?

2. What are the problems encountered by business in terms of:

2.1. recording;
 2.2. classifying;

2.3. summarizing; and

2.4. interpreting?

3. Is there a significant difference on the problems encountered by business when

grouped according to the business profile?

4. Based on the findings, what action plan may be proposed?

Scope, Limitation and Delimitation of the Study

The project research was conducted to assess the different technological-based

accounting program present today which might be helpful for accountants and

bookkeepers to perform their job easily. After assessing, the student researchers will

propose the programs to businesses in Lemery Town Proper. With this, it shows that

the study will only cover businesses inside the town proper of Lemery. The study also

covers things that can be related to technological-based accounting program. Lastly, the

project research will include possible action plan and recommendations for the affected

ones such as business owners and accountants.

However, the study will not cover those businesses that are outside the said

area. Although there is already a lot of business inside the Lemery town proper, not all

businesses might be included in the study since there are some that does not need

accounting on their businesses. In addition, other ways that may be used in performing

accounting will also not be covered in this study since this study mainly focuses on the

technological-based accounting program. The study is delimited to selected business

establishments inside the Lemery Town Proper for the reason that some establishments
doesn’t really need accounting on their business. Businesses who does not usually

includes accounting as part of their business are commonly those business who are

considered as small business.

Even if there are limitations stated above, the study still provided the reliable and

valid information because of the student researcher’s systematic way of conducting the

study. Proper tools were used in the study that contributed in coming up with a good

result.

Significance of the Study

Generally, the study was conducted to understand the usefulness of technology

in the field of accounting as well as in business. In addition, it also aims to assess the

different technological based accounting program that will be proposed to some

businesses in Lemery Town Proper. Moreover, this study will help some individuals to

easily adapt things in connection with performing the said work by using electronic

accounting which is commonly used by businesses nowadays.

Specifically, this study will be beneficial to the following:

Business Establishments. Through the help of this study, the business establishments

will be benefited since accountants are a big help in making the financial statements of

the business good for the eyes of the possible investors. Because accountants and

bookkeepers are the ones who are directly benefited in this study, the business

establishments will also be benefited because the work of the accountants will now be

effective because of the use of technology.

Society. The study is beneficial to the society because they will able to know that there

are some technologies that can be used in accounting field. Aside from that, this study
may serve as an eye opener to those who are not yet familiar to some technological

based that can be possibly used in performing accounting. Lastly, through this study,

society will be able to realize how important these technologies in studying or doing

accounting.

Stakeholders/Shareholders. The result of the study might serve as an instrument to

the stakeholders to be aware that performing accounting nowadays is not much as of

work because of the use of technology. This may encourage the stakeholders to be in

line with the field of accounting because of the said reason. If many people were

encouraged, this may break the stereotype that accounting jobs are complicated and

hard to do. All a person need is to be keen and careful in performing accounting.

Business Owners. This study would be beneficial to most of the business owner

specifically in Lemery, since this study contains the different insights and knowledge

about to the different technologies that can be used in performing accounting method to

have good financial reports and statement in the future. Having a good financial report

could help the business to attract investors and apply to some bigger loans in the bank.

This also can help to them to adapt the advancement of some technology to be able to

operate a work easy and properly.

Accountants. Particularly, this study will help some individual especially the

accountants because through this research study, they can gain more knowledge and

be aware that there are already development and enhancement on accounting system

specifically on technological advancements that can be used in performing their work.

With this, they can work now easily because of the use of technology. In addition, by
reading this research study, they can learn something such things as using some

technology in accounting system and applications related to accounting.

Programmers. Through this study, the programmers may experience increase in their

profits since the study assesses the different technological-based accounting programs.

Through their own skills, they might use this in having profits by programming the

different softwares to businesses who are not yet using advanced method in performing

accounting. In addition, these programmers will be aware that there are still business

who needs programmers who will help them in installing the program. The programmers

might also add installing accounting softwares on their jobs.

Future Researchers. Future researchers are one of the beneficiaries of this research

study. Because of the different data of this study, researchers can able to use it as their

basis in formulating their own research which focuses on the technology being used in

the accounting field. This study can also help these researchers to get insights that will

be helpful to conduct their own research study. Lastly, this study might contribute in

improving their work and have a productive outcome of research study that they will

make in the future..