Conducted by BatStateU
, Started on 2016 -
Completed on 2017
Completed
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Budgets are the foundation and the manifestations of a business plan and action. If the management of an SME has to maintain proper, updated and reviewed budgets then SMEs are bound to remain small, stagnant and possibly close down. With poor budgeting process among SMEs in the merchandising industry, there is a high possibility that those SMEs will collapse soon after they are established. This study analyzed financial budgeting practices of small and medium merchandising enterprises within Batangas city and determined how financial budgeting practices of SMEs be assessed in terms of sales forecast, cost of sales forecast, administrative and selling expense budget, budgeted income statement, cash budget and balance sheet budget. The study made use of descriptive method of research where there were 46 respondents with regards to the SMEs capitalization and number of employees that were listed in the City Planning and Development Office in Batangas City. The data gathering tool was a questionnaire which was constructed with the help of the research adviser, panelists and experts. The statistical treatments used were percentage, weighted mean, independent t-test and one-way analysis of variance. The study revealed that majority of the respondents have a capitalization of Php15,000,001-Php100,000,000, operating from 6-10 years, had 10-99 employees and in corporation form of business. Regarding the assessment of the financial budgeting practices, sales forecast, cost of sales forecast, selling and administrative expense budget, budgeted income statement, cash budget and balance sheet budget has a great impact if properly done to the success of any firm not just with SMEs. It was revealed that the sales forecast was the only variable that had a significant difference in terms of capitalization when the respondents’ assessment was grouped according to sales forecast, cost of sales forecast, selling and administrative expense budget, budgeted income statement, cash budget and balance sheet budget. The challenge that most of the respondents encountered in the budgeting process is that the nature of the budget is numeric, so it tends to focus the management attention on the quantitative aspects of a business which got 30 or 65 percent. The information, education and communication materials that can be produced on the financial budgeting practice for small and medium merchandising enterprises in Batangas City are pamphlet and leaflets.