CHAPTER 2

PRESENTATION , ANALYSIS AND INTERPRETATION OF DATA

The chapter consists of a detailed presentation, analysis, and interpretation of data based
on specific questions stipulated in this study. The gathered data are presented in tabular forms
with corresponding statistical analysis and interpretation. The discussion focused on the level of
effectiveness of the manual accounting process of small and medium enterprises in Colon Street,
Cebu City, of the students of the College of Business and Accountancy at the University of Cebu
– Main Campus.

Table 1
Profile of the Small and Medium Enterprises (SMEs)
(n=57)
Percentage
Profile Frequency (%)

Form of Business Organization    

● Sole Proprietor 38 66.67
● Partnership 14 24.56
● Corporation 4 7.02
● Cooperative 1 1.75

Nature of the Business    

● Others: Retail and Wholesale 2 3.51
● Retail 27 47.37
● Manufacturing 1 1.75
● Services 27 47.37

Capital Size    
● 100,000 - 500,000 33 57.89
● 500,001 - 1,000,000 12 21.05
● 1,000,001 - 5,000,000 12 21.05

Educational background of the head of accountant    

● Accountancy Graduate 17 29.82
● Management Accounting Graduate 13 22.81
● BSBA Graduate 14 24.56
● Business-related course under-graduate 13 22.81

Number of accounting staff    

● 1 to 5 accounting staff 49 85.96
● 6 to 10 accounting staff 4 7.02
● 11 to 20 accounting staff 4 7.02
 Table 1 shows the profile of the business. As to the form of business organization most of
the small and medium enterprises structured a sole proprietorship form of business organization
having 66.67% and then the cooperative has the lowest with 1.75%. Based on the findings, the
majority of the form of business organization is sole proprietor since it is the easiest and most
affordable entity to form, because it does not require legal filings or an additional tax filing to
operate the business (OSU. EDU, 2018). As Kluwer (2021) noted, “according to the SBA
(2022), it’s the simplest and least expensive business type you can establish”.

Concerning the nature of the business, the majority of the respondents possess retail and
services having a percentage of 47.37% and the lowest is manufacturing with 1.75%. Most
businesses rely on retail and services since according to Chron Contributor (2020), retail outlets
allow customers to see what they are buying up close and, as opposed to online stores, they
provide instant gratification, because the customer walks away with their purchases immediately.
Moreover, Hansen (2021) added that since service entrepreneurship is mostly about selling your
skills instead of physical goods or items, the risk of inventory loss is lower than starting a retail
business with an inventory of physical goods. Plus, service-based businesses are cheaper to start
than the manufacturing and retail costs needed for a product company.

As to the capital size, most of the respondents have a capital size of 100,000 - 500,000
with a percentage of 57.89% while the lowest number of respondents are both 500,001 -
1,000,000 and 1,000,001 - 5,000,000 with 21.05%. Some entrepreneurs start young with barely
any capital at their disposal, using their skills and talents to produce goods or render services,
and marketing their business on social media. According to Moneymax (2022), the capital for
this kind of small business starts at PHP 100,000, depending on what products and services you
want to offer.

The educational background of the head accountant of the small and medium enterprises
are mostly Accountancy graduates having 29.82% and 22.81% both for Management Accounting
Graduate and Business-related course under-graduate. Given the results, majority of the
businesses' head accountants are Accountancy graduates because Brooks (2021) acknowledged
that accountants are responsible for keeping financial records in order, creating financial reports
and looking at financial data to ensure that operations are cost effective. So finance degree
students will likely be more interested in financial strategy and control, while accounting degree
students will be more focused on professional principles and processes, used in order to manage
numbers rather than influence them (Laura T., 2022).
 As to the number of accounting staff, it is mostly 1 to 5 accounting staff or 85.96% while
7.02% for both 6 to 10 and 11 to 20 accounting staff. Small and medium enterprises require only
1 to 5 accounting staff. As Coleen (2021) noted, this is due to the fact that a properly certified
and experienced accountant should have no trouble performing the basic tasks needed in the
maintenance and growth of the finances involved in a small company.

Checked grammar and plagiarism using grammarly:

Table 1 shows the profile of the business. As to the form of business organization, most
small and medium enterprises structured a sole proprietorship form of the business organization,
having 66.67%, and then the cooperative has the lowest with 1.75%. Based on the findings, the
majority of business organizations are sole proprietors since it is the easiest and most affordable
entity to form because it does not require legal filings or an additional tax filing to operate the
business (OSU. EDU, 2018). As Kluwer (2021) noted, “according to the SBA (2022), it’s the
simplest and least expensive business type you can establish”.

Concerning the nature of the business, the majority of the respondents possess retail and
services having a percentage of 47.37%, and the lowest is manufacturing with 1.75%. Most
businesses rely on retail and services since, according to Chron Contributor (2020), retail outlets
allow customers to see what they are buying up close. Instead of online stores, they provide
instant gratification because the customer immediately walks away with their purchases.
Moreover, Hansen (2021) added that since service entrepreneurship is mainly about selling your
skills instead of physical goods or items, the risk of inventory loss is lower than starting a retail
business with an inventory of physical goods. Plus, service-based businesses are cheaper to start
than the manufacturing and retail costs needed for a product company.

As to the capital size, most of the respondents have a capital size of 100,000 - 500,000
with a percentage of 57.89% while the lowest number of respondents are both 500,001 -
1,000,000 and 1,000,001 - 5,000,000 with 21.05%. Some young entrepreneurs begin with little
capital and use their skills and talents to produce goods or render services while marketing their
business on social media. According to Moneymax (2022), the capital for this kind of small
business starts at PHP 100,000, depending on what products and services you want to offer.

The educational background of the head accountant of the small and medium enterprises
are mostly Accountancy graduates having 29.82% and 22.81% both for Management Accounting
Graduate and Business-related course under-graduate. Given the results, most of the businesses'
head accountants are Accountancy graduates because Brooks (2021) acknowledged that
accountants are responsible for keeping financial records in order, creating financial reports, and
looking at financial data to ensure that operations are cost-effective. So finance degree students
will likely be more interested in financial strategy and control. In contrast, accounting degree
students will focus on professional principles and processes used to manage numbers rather than
influence them (Laura T., 2022).

The number of accounting staff is mostly 1 to 5 accounting staff or 85.96% while 7.02%
for both 6 to 10 and 11 to 20 accounting staff. Small and medium enterprises require only 1 to 5
accounting staff. As Coleen (2021) noted, this is because a properly certified and experienced
accountant should have no trouble performing the basic tasks needed in the maintenance and
growth of the finances involved in a small company.

References:

OSU.EDU (2018). Business Structures 101. Retrieved from

https://u.osu.edu/coopmastery/legal/alternative-business-structures/#:~:text=Sole%20Proprietors
hip&text=It%20is%20the%20easiest%20and,reported%20on%20the%20owner's%201040.

Kluwer, W. (2021). What is a sole proprietorship and how to start one. Retrieved from
https://www.wolterskluwer.com/en/expert-insights/what-is-a-sole-proprietorship-and-how-to-star
t-one?fbclid=IwAR082wo8zEkUjXVYX_oo5Xdoiru_Qt-h9834tnJGG45G5xRoi4Jkk9fsvN0

Chron Contributor (2020). The Advantages of Retail Outlets. Retrieved from

https://smallbusiness.chron.com/advantages-retail-outlets-36821.html

Hansen, R. (2021). The Advantages Of Starting A Service Business Over Selling Products: A
Look Behind The Curtain. Retrieved from
https://www.skillupwa.org/the-advantages-of-starting-a-service-business/?fbclid=IwAR3hBR9N
hn1ytoZTkSg8Jzhyaz_RqVinjK8-uRG88e70_1bzxyUKtHZM3Gg

Moneymax (2022). 32 Micro and Small Business Ideas You Can Start with Low Capital in 2022.
Retrieved from
https://www.moneymax.ph/personal-finance/articles/small-business-ideas-philippines

Brooks, A. (2021). Business Management vs. Accounting: Which Degree is Right for You?
Retrieved from
https://www.rasmussen.edu/degrees/business/blog/business-management-vs-accounting-which-d
egree-is-right-for-you/?fbclid=IwAR1fYz_cH1HStgfRksrNR2ginXJhwu9dN5VFcyrwTo7CU4K
f_rn4wlxYFRs

Laura T., (2022). Accounting Vs Finance: Which Should You Study? Retrieved from
https://www.topuniversities.com/courses/accounting-finance/accounting-vs-finance-which-shoul
d-you-study?fbclid=IwAR2pkpcaP_j8viLsigwNDq_-Ft0BGenbcbTxQ3S-WQ3B-0joMWsM0H
SO_oE
Coleen, C. (2021). How Many Accountants Does a Company Need? Retrieved from
https://www.canton-mississippi.com/how-many-accountants-does-a-company-need/?fbclid=IwA
R0DYSiiJ68vaqHww9UKDjt4HHhquz_n6ntBDUqaFK_Nw2psLwErtrxXNMs
 Table 2
Level of effectiveness of manual accounting process of Small and Medium Enterprises
(SMEs)
  Mean Interpretation Rank

1. Finishing our assigned job on time 3.39 Highly Evident 1

2. Enhancing and increasing the quality and
quantity of our work. 3.23 Moderately Evident 4

3. Making our job easy and simple. 3.12 Moderately Evident 7

4. Recording business transactions accurately. 3.35 Highly Evident 3

5. Managing our accounting process is easier. 3.21 Moderately Evident 5

6. Making our data secure. 2.96 Moderately Evident 10

7. Affecting decision making. 3.12 Moderately Evident 7

8. Updating data and taking necessary action
reliably. 3.14 Moderately Evident 6
9. Summarizing, analyzing and reporting are
often much easier when using our
accounting process. 3.07 Moderately Evident 9
10. Making our accounting process easier to
set-up. 3.37 Highly Evident 2

Overall Mean 3.20 Moderately Evident

Table 2 presents the level of effectiveness of manual accounting processes of Small and
Medium Enterprises (SMEs). As shown in the table, Three (3) indicators are interpreted as
Highly Evident while seven (7) indicators are interpreted as Moderately Evident. Overall, the
ten (10) indicators have a mean of 3.20 which is interpreted as Moderately Evident.
As shown on the findings, most respondents asserted that they finish their assigned job on
time using manual accounting processes; this indicator scored the highest mean which is 3.39.
Gartenstein (2019) stated that although computerized accounting systems are considerably
quicker than manual ones, computerized systems are vulnerable to bugs and glitches, which have
the potential to slow you down. Unlike manual accounting processes where it’s easier to predict
the amount of time it takes to perform different functions which will help you in meeting
deadlines. In addition Sawant & Pawar (n.d.) noted that if you are a skilled accountant,
generating accounting documents like invoices, cheques, credit notes, purchase orders, payroll
documents and statement of account will be easy for you. Performing the accounting cycle is a
piece of cake, knowing these processes could help an accountant finish their job on time even
though they are just using manual processes.
The indicator that got the lowest mean is making data secured, which has the mean of
2.96. This means that most people could agree that manual accounting processes are not
effective when it comes to securing data. According to Koley & Komar (2021), the security of
data is weakened in manual accounting, where accounts are stored in books because the business
owner must put his trust in a few individuals in his organization, and all of the company's
employees could only hope that nothing goes wrong with the records. In addition, Shpak (2019)
also stated that Journals and ledgers are prone to being misplaced because they are physical
books. Theft or fire might wipe out all of a company's accounting records. Shanker (2019) also
asserted that the risk of losing data when utilizing manual accounting processes is high.
Important papers may need to be recreated if they are damaged or destroyed. It is possible to
make copies of the original work, but this can be time-consuming.

Checked grammar and plagiarism using grammarly:

Table 2 presents the level of effectiveness of manual accounting processes of Small and
Medium Enterprises (SMEs). The table shows that three (3) indicators are interpreted as Highly
Evident while seven (7) indicators are interpreted as Moderately Evident. Overall, the ten (10)
indicators have a mean of 3.20, which is interpreted as Moderately Evident.
As shown in the findings, most respondents asserted that they finish their assigned job on
time using manual accounting processes; this indicator scored the highest mean, which is 3.39.
Gartenstein (2019) stated that although computerized accounting systems are considerably
quicker than manual ones, computerized systems are prone to bugs and glitches, which have the
potential to slow you down. Unlike manual accounting processes, it's easier to predict the
amount of time it takes to perform different functions, which will help you meet deadlines. In
addition, Sawant & Pawar (n.d.) noted that if you are a skilled accountant, generating accounting
documents like invoices, cheques, credit notes, purchase orders, payroll documents, and
statements of account will be easy for you. Performing the accounting cycle is a piece of cake;
knowing these processes could help an accountant finish their job on time even though they are
just using manual processes.
The indicator with the lowest mean is making data secured, with a mean of 2.96. It means
that most people could agree that manual accounting processes are ineffective when securing
data. According to Koley & Komar (2021), the security of data is weakened in manual
accounting, where accounts are stored in books because the business owner must put his trust in
a few individuals in his organization, and all of the company's employees could only hope that
nothing goes wrong with the records. In addition, Shpak (2019) also stated that Journals and
ledgers are prone to be misplaced because they are physical books. Theft or fire might wipe out
all of a company's accounting records. Shanker (2019) also asserted that the risk of losing data
when utilizing manual accounting processes is high. Essential papers may need to be recreated if
they are damaged or destroyed. It is possible to make copies of the original work, but this can be
time-consuming.

Reference

Shanker, S. (2019). Advantages & Disadvantages of Manual Accounting Systems.

Retrieved from
https://smallbusiness.chron.com/advantages-disadvantages-manual-accounting-systems-23862.ht
ml

Gartenstein, D. (2019). Advantages & Disadvantages of Manual Accounting Systems.

Retrieved from
https://smallbusiness.chron.com/differences-between-manual-computerized-accounting-systems-
3764.ht
Koley, S., & Kumar, A. (2021). Comparative Analysis of Computerized Accounting
System and Manual Accounting System in Ranchi at Jharkhand. Jharkhand, India: Shodh
Samagam.
Sawant, B., & Pawar, M. (n.d.). A Study of Existing Accounting Practices Followed by
Management Institute-problems and Prospects, with Special Reference to Kbpimsr, Satara.
(College of Computer Application for Women, Satara, India). Retrieved from
http://www.researchdirections.org/Management/articleupload/SoNK9yRoRj.pdf
 Table 3

Problems encountered in the present accounting process

Percentage
Frequency (%) Rank

1. Finishing assigned tasks beyond the deadline 24 42.11 4

2. Costly to produce reports 15 26.32 9

3. Duplication of data entry 28 49.12 3

4. Vulnerability to fraud 21 36.84 6

5. Time consuming 44 77.19 1

6. Prone to error 32 56.14 2

7. Lacks of security and confidentiality 17 29.82 8

8. No backup records in case of loss 22 38.60 5

9. Inability to manage and store information 9 15.79 10

10. Inefficient Process 18 31.58 7

11. Others: Slow system of Bureau of Internal Revenue that

can cause transaction processing delay 1 1.75 11

Table 3 presents the problems encountered in using a Manual Accounting Process. As

shown in the table above, the problem that is often encountered in using Traditional Accounting
Process is that it is time consuming and shows 77.19 in percentage which ranked first among all
the other problems encountered. The bottom rank that took 1.75 of the percentage is the slow
system of Bureau of Internal Revenue that causes transaction delay.
In a Manual Accounting Process, a company's accounting operations to create an income
statement, balance sheet, and statement of owner's equity are prepared by hand, according to
Koley and Kumar (2021). Manual accounting consumes considerable time, which is frequently
spent gathering, verifying, and processing spreadsheets and paper binders. Journal entries,
allocations, adjustments, the general ledger, and intercompany accounting reconciliations all
consume time. Based on
According to Chan and Vasarhelyi (2018) manual accounting practice has not kept up
with the real-time economy, and assurance technology is behind. The manual nature of old
procedures may be largely to blame for the absence of support for real-time assurance. Manual
techniques are time and labor intensive. Based on Rkein, et al (2019) reported research depicts
that accountants had significant manual accounting chores that were regarded as time
consuming, in which accountants needed to collect data from numerous different systems or
partitions in order to create targeted reports.
With the consequences of the Manual Accounting Process, many businesses are
considering the automation of their accounting processes to eliminate the disadvantages of using
Traditional Accounting Process. Supported by Fernandez & Aman (2018) Robotic Process
Automation aids in the elimination of time-consuming manual processes that prohibit
accountants from delivering the strategy and analysis that brought them to this profession in the
first place. According to Koley and Kumar (2021) A computerized accounting system has been
introduced in corporate reporting for the replacement of manual accounting system in corporate
reporting with the help of long working hours are done in minutes, with the complete time saving
of work employee in the organization as well as time management of the organization’s time.

Checked grammar and plagiarism using grammarly:

Table 3 presents the problems encountered in using a Manual Accounting Process. As
shown in the table above, the problem that is often encountered in using Traditional Accounting
Process is that it is time consuming and shows 77.19 in percentage which ranked first among all
the other problems encountered. The bottom rank that took 1.75 of the percentage is the slow
system of Bureau of Internal Revenue that causes transaction delay.
In a Manual Accounting Process, a company's accounting operations to create an income
statement, balance sheet, and statement of owner's equity are prepared by hand, according to
Koley and Kumar (2021). Manual accounting consumes considerable time, frequently spent
gathering, verifying, and processing spreadsheets and paper binders. Journal entries, allocations,
adjustments, the general ledger, and intercompany accounting reconciliations consume time.
According to Chan and Vasarhelyi (2018), Manual accounting practice has not kept up
with the real-time economy, and assurance technology is behind. The manual nature of old
procedures may be primarily to blame for the absence of support for real-time assurance. Manual
techniques are time and labor-intensive. Based on Rkein et al. (2019) reported research,
accountants had significant manual accounting chores regarded as time-consuming. Accountants
needed to collect data from numerous systems or partitions to create targeted reports.
Other than the significant time spent on accounting processes, the slow system of Bureau
of Internal Revenue causes the delay of transactions of file reports to BIR. According to Padin
(2018), there was technical issues reported affecting BIR functions. It was broadcasted that
despite assistance by the Department of Information and Communication Technology (DICT),
the BIR continued to encounter technical issues in all of its systems and electronic services,
limiting the agency's capacity to provide essential public services.

Reference:
Padin, M.G. (2018). Technical issues affecting BIR functions. Retrieved from
https://www.philstar.com/business/2018/10/13/1859534/tehnical-issues-affecting-bir-functions?f
bclid=IwAR0iyEIZeQRtERu5ZDaFE9US5vpEUVwwmpWRL6rnwtuY1YJHnNkzlc1Zz90

Philstar Global reported the technical issues affecting BIR functions on October 13,2018
by a reporter, Mary Grace Padin.
With the consequences of the Manual Accounting Process, many businesses consider
automating their accounting processes to eliminate the disadvantages of using the Traditional
Accounting Process. Supported by Fernandez & Aman (2018), Robotic Process Automation aids
in the elimination of time-consuming manual processes that prohibit accountants from delivering
the strategy and analysis that brought them to this profession in the first place. According to
Koley and Kumar (2021), A computerized accounting system has been introduced in corporate
reporting for the replacement of manual accounting system in corporate reporting with the help
of long working hours are done in minutes, with the full time saving of work employee in the
organization as well as time management of the organization's time.

Koley, S., & Kumar, A. Comparative Analysis of Computerized Accounting System and Manual
Accounting System in Ranchi at Jharkhand.
http://www.shodhsamagam.com/admin/uploads/Comparative%20Analysis%20of%20Computerized%20A
ccounting%20System%20and%20Manual%20Accounting%20System%20in%20Ranchi%20at%20Jharkh
and.pdf

Rkein, H., Issa, Z. A., Awada, F. J., & Hejase, H. J. (2019). Impact of Automation on Accounting
Profession and Employability: A Qualitative Assessment from Lebanon. Saudi Journal of Business
Management, 4,
372-385.https://www.researchgate.net/profile/Hussin-Hejase/publication/333037020_Saudi_Journal_of_B
usiness_and_Management_Studies_Impact_of_Automation_on_Accounting_Profession_and_Employabili
ty_A_Qualitative_Assessment_from_Lebanon/links/5cd829c792851c4eab982186/Saudi-Journal-of-Busin
ess-and-Management-Studies-Impact-of-Automation-on-Accounting-Profession-and-Employability-A-Qual
itative-Assessment-from-Lebanon.pdf

Chan, D. Y., & Vasarhelyi, M. A. (2018). Innovation and practice of continuous Auditing1. In
Continuous Auditing. Emerald Publishing Limited.
http://128.6.41.71/MiklosVasarhelyi/Resume%20Articles/MAJOR%20REFEREED%20ARTICLES/M52.Inn
ovation_Practice_ofCA.pdf

https://www.philstar.com/business/2018/10/13/1859534/tehnical-issues-affecting-bir-functions?f
bclid=IwAR0iyEIZeQRtERu5ZDaFE9US5vpEUVwwmpWRL6rnwtuY1YJHnNkzlc1Zz90
Fernandez, D., & Aman, A. (2018). Impacts of robotic process automation on global accounting
services. Asian Journal of Accounting and Governance, 9(1), 127-140.
https://www.researchgate.net/profile/Dahlia-Fernandez/publication/331920582_Impacts_of_Robotic_Proc
ess_Automation_on_Global_Accounting_Services/links/5c9336ba45851506d71f7b70/Impacts-of-Robotic-
Process-Automation-on-Global-Accounting-Services.pdf

Results on the Test of Significant Relationship

This part presents the results on the test of the significant relationship between the profile
of the respondents and their perception to the level of effectiveness of manual accounting process
to Small and Medium Enterprises (SMEs). The data are contained in Table 4.
 As shown in the data, there is no significant relationship between the form of business
organization of the respondents and their perception on the level of effectiveness of manual
accounting process. This result connotes that whether the Small and Medium Enterprises (SMEs)
who served as respondents in this study is a sole-proprietorship, partnership, corporation, or
cooperative, it does not affect to the level of effectiveness of manual accounting processes in
their business.

In addition, there is also no significant relationship between the nature of business of the
respondents and their responses on the level of effectiveness of the manual accounting process,
based on the above-mentioned aspects. This data means that whether the nature of business of
the Small and Medium Enterprises (SMEs) who served as respondents in this study is services,
retail, or manufacturing, it does not affect to the level of effectiveness in the manual accounting
processes.

Moreover, there is no significant relationship between the capital size of the Small and
Medium Enterprises (SME’s) and, the level of effectiveness of the manual accounting processes.
This data means that whether the capital size belongs to this amount 100k-500k, 501k-1M or
1M-5M it does not affect the level of effectiveness of the manual accounting processes.

Furthermore, there is no significant relationship between the respondents’ educational

background of the head accountant and their objectivity of the level of the effectiveness of the
manual accounting processes. This data denotes that whether the respondent is accountancy
graduate, management accounting graduate, BSBA graduate or business-related course
under-graduate it does not have any relation on their manner of perceiving the level of
effectiveness of the manual accounting processes.

Lastly, there is also no significant relationship between the respondents’ number of

accounting staff and their perspective on the level of effectiveness of the manual accounting
processes. This means that whether the respondents’ number of accounting staff belong to this
number 1 to 5 accounting staff, 6 to 10 accounting staff or 11 to 20 accounting staff it does not
affect the level of effectiveness of the manual accounting processes.
 To sum it up, the following results shows that the profile of the respondents has no
significant relationship towards the level of effectiveness of the manual accounting processes to
Small and Medium Enterprises (SME’s).

Checked grammar and plagiarism using gramamarly:

This part presents the results of the test of the significant relationship between the profile
of the respondents and the level of effectiveness of the manual accounting process for Small and
Medium Enterprises (SMEs). The data are contained in Table 4.

As shown in the data, there is no significant relationship between the form of business
organization of the respondents and the level of effectiveness of the manual accounting process.
This result connotes that whether the Small and Medium Enterprises (SMEs) who served as
respondents in this study are a sole-proprietorship, partnership, corporation, or cooperative does
not affect the level of effectiveness of manual accounting processes in their business.

In addition, there is also no significant relationship between the nature of business of the
respondents and their responses on the level of effectiveness of the manual accounting process,
based on the aspects mentioned above. This data means that whether the nature of business of the
Small and Medium Enterprises (SMEs) who served as respondents in this study is services,
retail, or manufacturing, it does not affect the level of effectiveness in the manual accounting
processes.

Moreover, there is no significant relationship between the Small and Medium Enterprises
(SMEs) capital size and the level of effectiveness of the manual accounting processes. This data
means that whatever the capital size is, it does not affect the level of effectiveness of the manual
accounting processes.

Furthermore, there is no significant relationship found between the respondents’

educational background of the head accountant and their objectivity of the level of the
effectiveness of the manual accounting processes. This data denotes that whether the respondent
is an accountancy graduate, a management accounting graduate, a BSBA graduate, or a
business-related course undergraduate does not relate to their manner of perceiving the level of
effectiveness of the manual accounting processes.

Lastly, there is also no significant relationship between the respondents’ number of

accounting staff and their perspective on the level of effectiveness of the manual accounting
processes. It means that whether the respondents’ number of accounting staff belong to this
number 1 to 5 accounting staff, 6 to 10 accounting staff or 11 to 20 accounting staff, it does not
affect the level of effectiveness of the manual accounting processes.

To sum it up, the following results show that the profile of the respondents has no
significant relationship with the level of effectiveness of the manual accounting processes for
Small and Medium Enterprises (SMEs).

Results on the Test of Significant Difference

This part presents the results on the test of the significant difference in the level of
effectiveness of manual accounting processes to Small and Medium Enterprises (SMEs) when
grouped according to profile. The data are contained in Table 5.
 As shown on the data, there is no significant difference on the responses on the level of
effectiveness of Manual Accounting Process to Small and Medium Enterprises (SMEs) when
grouped according to the Form of business organization. It shows a p-value of 0.21 that is greater
than 0.05 level of significance. Hence, it is failed to reject the Ho.

In addition, there is also no significant difference on the responses on the level of

effectiveness of Manual Accounting Process to Small and MEdium Enterprises (SMEs) when
grouped according to the Nature of Business. This table shows a p-vaue of 0.15 that is greater
than 0.05 level of significance, hence, failed to reject Ho.

Moreover, there is no significant difference on the responses on the level of effectiveness

of Manual Accoutning Process to Small and Medium Enterprises (SMEs) when grouped
according to its Capital size. This means that it shows a p-value of 0.13 that is greater than 0.05
level of significance, hence, failed to reject Ho.

Furthermore, there is no significant difference on the responses on the level of

effectiveness of Manual Accounting Process to Small and Medium Enterprises (SMEs) when
grouped according to Educational background of the head of accountant. The data shows a
p-value of 0.15 that is greater than 0.05 level of significance. Hence, it is failed to reject Ho.

Lastly, there is also no significant difference on the responses on the level of

effectiveness of Manual Accounting Process to Small and Medium Enterprises (SMEs) when
grouped according to Number of accounting staff. The table shows a p-value of 0.13 that is
greater than 0.05 level of significance, hence, failed to reject Ho.

To sum it up, the following results shows that there is no significant difference on the
responses on the level of effectiveness of Manual Accounting Processe to Small and Medium
Enterprises (SME’s) when grouped according to profile.
Checked grammar and plagiarism using grammarly

This part presents the test results of the significant difference in the level of effectiveness
of the manual accounting process for Small and Medium Enterprises (SMEs) when grouped
according to profile. The data are contained in Table 5.

As shown in the data, there is no significant difference in the responses on the level of
effectiveness of the Manual Accounting Process to Small and Medium Enterprises (SMEs) when
grouped according to the Form of business organization. It shows a p-value of 0.21, greater than
the 0.05 level of significance. Hence, it failed to reject the Ho.

In addition, there is also no significant difference in the responses on the level of

effectiveness of the Manual Accounting Process to Small and Medium Enterprises (SMEs) when
grouped according to the Nature of Business. This table shows a p-value of 0.15, greater than the
0.05 level of significance; hence, it failed to reject Ho.

Moreover, no significant difference is found in the responses on the level of effectiveness

of the Manual Accounting Process to Small and Medium Enterprises (SMEs) when grouped
according to its Capital size. It means that it shows a p-value of 0.13, greater than the 0.05 level
of significance; hence, it failed to reject Ho.

Furthermore, there is no significant difference found in the responses on the level of

effectiveness of the Manual Accounting Process to Small and Medium Enterprises (SMEs) when
grouped according to the Educational background of the head of the accountant. The data shows
a p-value of 0.15, which is greater than the 0.05 level of significance. Hence, it failed to reject
Ho.

Lastly, there is also no significant difference in the responses on the level of effectiveness
of the Manual Accounting Process to Small and Medium Enterprises (SMEs) when grouped
according to the Number of accounting staff. The table shows a p-value of 0.13, which is greater
than the 0.05 level of significance; hence, it failed to reject Ho.

To sum it up, the following results show no significant difference in the responses on the
level of effectiveness of the Manual Accounting Process to Small and Medium Enterprises
(SMEs) when grouped according to profile.