IMPACT OF MANUAL ACCOUNTING SYSTEM TO THE WORK

PERFORMANCE OF THE ACCOUNTING STAFF IN SMALL

BUSINESSES IN PASIG CITY

JANNA MARI C. FRIAS

PASIG CATHOLIC COLLEGE

College Department

OCTOBER 2021
 Chapter 1

THE PROBLEM AND ITS BACKGROUND

Introduction

Accounting is the language of business (Buffett, 2014). It is the means of

communicating information about a business, as it is the analysis and

interpretation of bookkeeping records in accounting systems. According to

Winston (2016), accounting systems are a crucial component of any business. It

is a collection of organized accounting devices, procedures, and controls that are

operated using a mix of either manual or computerized approaches (Rothberg,

2012). These systems are designed to collect, record, classify, and analyze

timely financial data that are translated to its users, and thus to be able to make

well-planned decisions. One of these accounting systems is the manual

accounting system in which accountants journalize, and post inside special

books using the double entry bookkeeping system(Ama, 2014). The double entry

bookkeeping system is usually used in recording and posting in which are made

for these special books (Cooper and Graybeal, 2019). These special books are

classified according to their purpose and are used to keep track of specific types

of abundant information that might otherwise overwhelm the book of final entry

(Bragg, 2021).

The Manual Accounting System is commonly utilized by small businesses,

as these systems have a lower cost and are easy to use than accounting

information systems. In addition, small or new businesses do not have a lot of

financial entries to create, and the accounting needs are completely simple.

However, the manual accounting system requires the accountants to understand

the process of the accounting cycle, considering that accounting is an essential

component in running a business (Woods, 2019). Untangling the complexities of

financial records may take some time. As creating reports are time consuming,

accountants may start to neglect other aspects of the business and might miss

opportunities to grow and learn. In fact, inaccurate financial records are also

caused by human errors as manual accounting systems can be laborious and

dull that causes accountants to create mistakes (Winston, 2016). Moreover,

records may be available only in physical records in turn can make problems if

they are stolen, lost, and/or damaged.

The main purpose of this study is to look into the manual accounting

system and its impact on the work performance of the accounting staffs in small

businesses in Pasig City particularly in barangay Rosario.

The viable contribution of this study is to improve the practices of manual

accounting systems in small businesses for the work performance of the

accounting staffs, hence, generating greater results in their work.

Significance of the Study

The vital results of this study could be highly significant and beneficial to

the following:
 Accountants. It will help them improve their work performances in using

the manual accounting systems and to identify possible errors that may arise

from the systems.

Owners. It will help them make well-informed business decisions through

the accounting systems and to improve the quality of their systems at work for

their accounting staff.

Small businesses. This study will enable small businesses to better

understand the advantages and disadvantages of using manual accounting

systems and to create better quality of work for their accounting staff.

Accounting Managers. It will help them pinpoint aspects of work that lack

quality in terms of their accounting information apart from their system. It will also

help them create a better environment for their accountants to be effective and

efficient in their fields.

Employees. This study will help them raise awareness on their current

situations in their accounting system, whether to be improved or to be enhanced.

It will also help them in generating better quality of work.

Future Researchers. This study can be of great assistance to the future

researchers, as they can use it as a foundation for further research or as one of

their sources when creating their review of related literature.

Theoretical Framework
 The theory of accounting according to the American Accounting

Association (1966), It is a cohesive set of conceptual, hypothetical, and

pragmatic proposition explaining and guiding the accountant’s actions in

identifying, measuring, and communicating economic information to users of

financial statements.

The theory of accounting can be traced back to as when it was one of the

major disciplines (Gordon, 2021). He further states that accounting discipline was

developed in the 15th century and has further discovered many more accounting

theories that are based on corporate businesses. According to Wolk, Dodd and

Rozycki (2008), the theory of accounting is the holder that consists of the basic

assumptions, definitions, principles and concepts and how they are derived. It is

the logical reasoning in the form of broad principles that provide a general frame

of reference to every accountant to evaluate and guide the development of new

practices and procedures (Perara and Matthew, 1996). They further defined

accounting theory as the rationalization of the rules of accounting which further

explains the way accountants gather, record, classify, report, and interpret

financial data especially when monetary amount is determined the financial

statements.

The researchers connected this theory to support the study of the impact

of the manual accounting systems to the work performance of the accounting

staff in small businesses. It is basically the basis of understanding the financial

reporting and how companies channel their financial statements using the

appropriate methods. The theory of accounting is the skeleton of accounting

practices as its key elements are relevance, usefulness, reliability and

consistency. Moreover, this theory maintains the accountant’s professionalism in

the accounting industry to operate based on assumptions that either differences

between the business and its owner, continuity, and the preparations of financial

statements with the use of currency representation and compilation of statements

either monthly, quarterly or annually.

Conceptual Framework

INDEPENDENT VARIABLE DEPENDENT VARIABLE

WORK PERFORMANCE
MANUAL ACCOUNTING
SYSTEM 1. Integrity

1. Physical Records 2. Objectivity

2. Books of Accounts 3. Professional Competence

4. Confidentiality
3. Manual Bookkeeping
5. Professional Behavior

Figure 1: Conceptual Framework

Figure 1 shows the conceptual framework of the study which serves as a

guide for the better understanding of the research work.

The first and second boxes represent the independent and dependent

variables of the study. The independent variable which is the manual accounting

system which includes physical records, books of accounts and manual

bookkeeping and dependent variable, work performance which includes integrity,

objectivity, professional competence, confidentiality, and professional behavior.

 The arrow connecting the two boxes indicate the hypothesize relationship

between the manual accounting systems and work performance of the

accounting staff in small businesses in Pasig City. The study hypothesizes that

there is no significant impact between the manual accounting system and work

performance of the accounting staff in small businesses in Pasig City.

Statement of the Problem

This study intends to look into the manual accounting system and its

impact in the work performance of the accounting staff in small businesses in

Pasig city.

1. How may the Manual Accounting System of the small businesses in

Pasig city be described in particular to:

1.1 Physical Records

1.2 Books of Accounts

1.3 Manual Bookkeeping

2. What is the degree of impact on the work performance of the

accounting staff in small businesses in Pasig city with regards to:

2.1 Integrity

2.2 Objectivity

2.3 Professional Competence

 2.4 Confidentiality

2.5 Professional behavior

3. Is there a significant relationship between the manual accounting

system and the work performance of the accounting staff in small businesses in

Pasig city?

4. What implications may be derived from the results of the study?

Statement of the Hypothesis

There is no significant impact between the manual accounting system and

work performance of the accounting staff in small businesses in Pasig city.

Scope and Delimitation

The study focuses on determining the impact of the manual accounting

systems to the work performance of the accounting staff in small businesses that

are engaged in leasing businesses in Barangay Rosario, Pasig City during the

fiscal year of 2021.

The manual accounting systems will be further delimited to physical

records, books of accounts, and manual bookkeeping while work performance is

delimited to integrity, objectivity, professional competence, confidentiality, and

professional behavior.

Definition of Terms
 The following terms are defined either conceptually or operationally for

better understanding of the study.

Physical Records. These are documents that can be touched, and it creates or

take up physical space, which is later to be used in interpreting, and reporting the

business day-to-day operations.

Books of Accounts. These are the books that contain accounting information

that are used in recording business transactions.

Manual Bookkeeping. It is the accounting process of recording, classifying, and

summarizing transactions that are made by hand.

Integrity. It is being honest and performing in accordance with one’s deepest

values.

Objectivity. It is a concept of using solid evidence in generating accounting

information.

Professional Competence. It is the skills, attitudes, and behaviors of accounting

professionals.

Confidentiality. It is ensuring the information received by the accountant must

be kept in secrecy and respected according to his course of duty.

Professional Behavior. It is complying with the relevant laws and regulations

and to avoid any conduct that the accountant knows or should know might

discredit his profession.

 Chapter 2

REVIEW OF RELATED LITERATURE

This chapter presents various conceptual and research literature that will

provide theoretical and empirical insights into the problem. The Conceptual

Literature on evaluating the Manual Accounting Systems and how it affects work

performance coming from books, journals, periodicals, and other electronic

sources provided the researcher with substantial number of theoretical insights.

Similarly, the research literature on the same subject of investigation conducted

by competent individuals, mainly the thesis and dissertations, equally gave the

researcher empirical insights in the study under investigation. The related

literature is grouped and presented thematically.

Manual Accounting System

Physical Records

Long ago, physical records were the only one’s existent within the

workplace environment (Haire, 2021). According to the University of Virginia

(2021), physical records are those items that are in a format of either papers,

analogs, audio tape or video tape and other types. Physical records, even though

they are in different types of physical forms, they are collected, received, or

maintained according to the laws, and in connection with the continuity of

tracking day-to-day business transactions. According to Note (2021), one of the

reasons why records have been viewed and taken into different lights by

individuals is because of the value and reason it possesses. Records features

four characteristics: its authenticity that the content, context, and its structure

continue to exist, it stresses reliability in which these records are trustworthy,

records are complete, honest, and unchanged by means of integrity, and are

usable by means can be located, presented, and interpreted (ISO 105489, 2016).

According to Latham (2016) in his study on record keeping, items that

possess significance to their owners, institutions, or potential users are not only

significant in terms of the information within but also the formats of these items.

The format within the items might be significant to others in terms of knowing

what they did in the past or possibly to let new users to experience having

physical records in said formats (Newman and Smith, 2016).

In such cases, these records that contain formats are often used for

materiality purposes that continually develop over time (Fenlon et al., 2014).

Currently, a widespread of latest technologies and machines are created and

used for the betterment of storing significant records an enterprise possesses in

which accountants recreate a new format or redevelop their past formats with the

available technology they possess (Hamer, 2018). Consequently, according to

Sheffield (2018), some individuals’ ways of recording such information and

recreating formats may affect their expectations on their experience with physical

records. Moreover, in this study, physical records are defined as documents that

can be touched and creates or take up space.

The mere existence of physical records is crucial because any person

cannot maintain or keep everything inside his head because memory itself is not

enough for proper planning and research (Bernstein, 2016). In addition,

maintaining physical records can help keep track a business’ health and its

current operations.

Books of Accounts

The books of accounts are said to be the business establishments and

taxpayers’ records of day-to-day business transactions to be able to have definite

results from their operations (Yanuaria, 2011). The books of accounts are

registered to the Bureau of Internal Revenue and are classified into different

formats such as manual, loose-leaf, and computerized books of accounts. In this

study, the format of the books of accounts is mainly the manual books of

accounts that is called the traditional method which is used by small businesses.

“All corporations, companies, partnerships, or persons are required by law to pay

internal income taxes must use and maintain relevant and appropriate set of

bookkeeping records duly authorized by the Bureau of Internal Revenue where

all transactions and results are presented and for which all taxes due to the

Government may be promptly and accurately and defined any time of the year”

(T.R.A.I.N Law, 2018). The books of accounts hold a significant role in running a

business as it is used in recording business transactions and the basis of tax

returns (Feliciano, 2017). According to Abeleda (2018), there are two general

types of books which is the book of original entry, and the book of final entry. The

book of original entry may be classified to its subclasses which are called the

special books that can be under the voucher and non-voucher systems,

examples of the book of final entry are: the general journal, cash receipts journal,

cash disbursement journal, sales journal, and purchase journal. On the other
hand, the book of final entry only has two types which is the general ledger and

subsidiary ledger. The books of accounts are further defined to be the keys in

accounting records, as it is essential in the practice of an accountant that must

be compliant to the law (Juantax, 2019).

Manual Bookkeeping

According to Fortuin (2013), bookkeeping is the process of writing down

all the ins and out of money in your business. There are two basic systems in

bookkeeping which is the single-entry and double-entry bookkeeping system

(Bernstein, 2016). In this study, it will only revolve in the double-entry

bookkeeping system which is purely based on accounting systems in which

transactions are dated and composed of at least two entries or have a double

effect. To put it simply, it is in line with the terms of value received and value

parted with because for every business transaction it is believe that there will

always be a two-fold effect on any accounting elements which are the assets,

liabilities, and capital (Abeleda, 2018). These accounting elements according to

him are either increased or decreased by each transaction and the equality of the

accounting equation assets = liabilities + owner’s equity/capital will always be

maintained.

According to Bernstein (2016), the value of bookkeeping in a business is

not only generally on the money you have received and spent but also on

calculating the profits or losses it gained, it can also help make better decisions,

it can keep track of transactions based on credit or loans made by people, and

lastly, it helps prevent abuse of funds and mistrust among group members. The
mere existence of a bookkeeping system is valuable in managing a business and

for it to be successful. As Buffet (2014), states that accounting is profoundly the

language of business as it is means of communicating information about a

business and is the analysis and interpretation of it.

Work Performance

Integrity

According to a study by Cornerstone Research (2014), the accounting

cases had increased by 47% over previous years. Hence, companies seek

protection by hiring candidates who are dedicated to their work ethics. One of the

qualities an employer seeks is having integrity. According to Marville University

(2021), Integrity is a vital quality of an accountant as they play a significant role in

managing the finances of the business. Clients trust accountants with private,

important, and personal information about their businesses into their hands

(Williams, 2015). According to her that no matter what the circumstances of the

business may concern to exist they must be complete and done with utter

commitment. In the international code of ethics for professional accountants

(2019), integrity implies fair dealing and truthfulness. They further defined that a

professional accountant must not be associated with reports that (a)contain

materially false or misleading statements, (b) contain statements or information

that are provided recklessly, and (c) removes required information where such

removal would be misleading. According to Mind Tools Content Team (2021),

integrity is living in accordance with one’s deepest values, honest with everyone

and always keeps his word. It is a highly valued trait, especially in leaders, as
integrity determines one’s reputation, as a Japanese proverb states “The

reputation of a thousand years may be determined by the conduct of one hour.”

Objectivity

According to the University of Alabama (2018), the objectivity principle in

modern accounting play an important role in day-to-day business transactions.

They further defined the objectivity principle as using only provable data in the

books, and never an internal measurement of its values. In addition, even if

internal data is better than the provable data, the provable data must be used. In

the international code of ethics for professional accountants (2019), a

professional accountant must comply with the objectivity principle wherein they

must not compromise their professional judgement because of factors that

influence them such as biases, and conflict of interests. They further declared

that a professional accountant must not undertake a professional activity if

circumstances or relationships influence the accountant’s judgement. Simply put,

the objectivity principle is when transactions must always be supported and

verified through documents to maintain trust, faith and confidence to its users

that is free from biases (Abeleda, 2018).

Professional Competence

According to AICPA (2021), professional competencies are those related

to skills, attitudes, and behaviors of accounting professionals. It is required to

ensure that a client or employer receives competent professional services

wherein a professional accountant has a continuous duty of maintaining

professional knowledge and skills at the level they require (Musa, 2019).

Maintenance of professional competence is one’s awareness and understanding

of current technical, professional, and business developments. On the other

hand, attainment of professional competence is when one lets self to develop,

learn, and maintain his own capabilities within his professional environment

(Code of Professional Ethics for Professional Accountants, 2019).

In the study by Rufino et. Al (2018), competency requirements for

accountant may differ on the forms of business organization, business

operations, sectors, number of years employed in the company or organization

and the position held are always applied whatever the course may be. The code

of professional ethics for accountants (2019), further defines that professional

competence is diligence that encompasses the responsibility to act in

accordance with requirements of an assignment, carefully, thoroughly and on a

timely basis.

Confidentiality

The principle of confidentiality is when the accountant must keep the

information that he receives in secret and respect in accordance with his duty

(AICPA, 2021). There are only a few cases wherein an accountant may disclose

confidential information as along as he is given proper consent by his client or by

law, but in all times the accountant must always have the principle of

confidentiality in all the information he receives (Nordmeyer, 2018). According to

Amponsah et al. (2016), Confidentiality is a vital part of every institution that

might bring unexpected consequences to the members of its organization. Some

accountants are viewed as advisers in which who implement and preserve the

trust required by their profession, it is their responsibility to protect confidential

information (Nordmeyer, 2018).

Professional Behavior

According to University of West Florida (2017), professional behavior is

compliance with existing laws and regulations that govern their profession and

activities related to its profession. The professional accountant must behave in

accordance with his profession and must not do anything that discredits his

profession (AICPA, 2021). According to IESBA (2019), the need of the principle

of professional behavior creates a statement for the aspect of moral conducts in

the accountant’s professional activities and the behaviors that strengthen his

professionalism that increases his public trust. The principle of professional

behavior summarizes everything in the qualities of an accountant’s work

performance must have. Hence, the professional accountant must comply with

said relevant laws, and regulations such that to avoid discrediting his profession.

A professional accountant must obscure himself from any businesses,

organizations or activities that might discredit his integrity, objectivity, and good

reputation of his profession that results to the fundamentals of the code of

professional ethics for professional accountants (IESBA, 2019).

Synthesis

Manual Accounting System relies on its 3 attributes, namely, physical

records, books of accounts, and the manual bookkeeping. Physical records have
different types of forms, it is collected, received, and maintained which is highly

connected to tracking the business’ day-to-day operations in compliance to the

law. It is viewed to must always be authentic in content, context and that its

structure must always be continually existing and can always be located to be

interpreted and reported. With regards to this study, physical records will be

defined as a type of system or program that identifies, classifies, prioritizes,

stores, secures, archives, preserves, retrieves, tracks, and disposes records in

an efficient way in accordance with the objectives of the organization.

On the other hand, the books of accounts are the accounting records of all

the financial transactions of the business, it is supported with different types of

documents that are later to be used in the basis of computing the business’ tax

returns. Concerning this study, the books of accounts will be defined as a key in

tracking the day-to-day business transactions of the business with regards to its

accounting information. Furthermore, the books of accounts that will be defined

are the manual books of accounts in which it is handwritten which is often used

by small businesses to comply with the BIR. The books of accounts are to be

renewed and stamped by the BIR whenever it has been fully used. It is further

delimited to different kinds such as the General Journal, and General Ledger. In

which the General ledger is the book of original entry that has a special process

called journalizing in which business transactions are recorded. On the other

hand, the General Ledger is called to be the book of final entry as it is used in

viewing the final balances of each account recorded in the general journal. It also
has a special process called Posting in which the records that were journalized in

the general journal are transferred or posted in the general ledger.

Lastly, the manual bookkeeping, it is one of the easiest and most simple

method of bookkeeping that works well in small businesses. In this study, it will

only revolve in the double-entry bookkeeping system which is purely based on

accounting systems in which transactions are dated and composed of at least

two entries or have a double effect. According to the authors, bookkeeping is a

way to help manage a business and allows users to evaluate your business.

Bookkeeping is a way to keep track of all the money in a business in each

transaction whether in or out. It is valuable to a business on how much money

has gone in or out of the business, and to calculate one’s loss or profit as it helps

in making better business decisions. Bookkeeping is also valuable in a way that it

cannot be used to trick you with regards to the buying and selling of products on

credit.

Manual accounting systems may result to the lack of integrity, objectivity,

professional competence, confidentiality, and professional behavior to its

accounting information. Accounting systems are continually developing through

time especially at this contemporary modern age. Some accountants would

prefer a computerized accounting system as it is more efficient and faster than

the manual accounting system and it does not require much knowledge of the

accounting process. Overall, this study will be filled in analyzing whether an

accounting system is one of the reasons on why an accountant will not abide or
will bend to its principles on work performance, specifically in small businesses in

barangay Rosario Pasig City as it is much smaller in scale than large businesses.
 Chapter 3

Research Methodology

This chapter includes the research design, the population and sample,

validation procedure, the data collection procedure, description of instrument and

data analysis procedure.

Research Design

This study will utilize the quantitative descriptive correlational research

design in the impact of manual accounting system to the work performance of the

accounting staff in small businesses in Pasig City during the fiscal year of 2021.

The descriptive research design can be used to study the relationships

among variables (Research Connections, 2020). This study will use the

descriptive correlational design that will examine the relations among the

variables. On the other hand, the findings from the correlational analyses will not

be evidence of the causality, rather they are to help distinguish the variables that

may be important in explaining the phenomenon (McCombes, 2019).

Under descriptive method, correlational research is commonly employed,

In correlational research, the aim is to describe the strength of relationship

between two or more events or characteristics (Sautrock, 2005). The most

common means of obtaining the required information is through the use of

questionnaires that were administered in small businesses. The researcher

believes that this is the most useful method to use because the study aims to
identify the impact of manual accounting system to the work performance of the

accounting staff in small businesses.

Respondents of the Study

The subject of this research will be the accounting staff of small

businesses in Barangay Rosario, Pasig City during the fiscal year of 2021. The

study covers 73 respondents of small businesses engaged in leasing which

covers 100% of the population in Barangay Rosario, Pasig City.

The researchers will gather data from the respondents directly by handing

accounting staffs in small businesses the survey questionnaire provided by the

researchers and the researchers will retrieve the survey questionnaires right after

the respondents have successfully answered all the questions.

Instrument of the Study

The major data gathering instrument of the study will be a locally

constructed questionnaire to be made/constructed by the researcher under the

guidance and supervision of the thesis adviser. The researcher will be guided by

the extensive review of various related literature about the topic. The instrument

to be used is composed of 3 parts.

The first (1) part of the questionnaire will elicit information about the

demographic profile of the respondents in terms of: age and gender. However,

the demographic profile of the respondent is not part of the research. The

researcher simply got the demographic profile to give the reader of the paper a
mental description of the respondents of the study. Which means, it will not have

any effect on the result of the study.

The second (2) part of the instrument will measure the manual accounting

system in particular to: physical records, books of accounts and manual

bookkeeping.

The third (3) part of the instrument will measure the work performance of

the accounting staff in small businesses with regards to: integrity, objectivity,

professional competence, confidentiality, and professional behavior.

Validation Procedure

The content validity procedure will be utilized in validating the instrument

to find out the degree which an instrument has an appropriate sample of items for

the construct of manual accounting system and the construct of the work

performance being measured and adequately covers the construct domains.

Essentially, the procedure involves soliciting judgment of three experts:

accounting expert, English expert, and instrument expert in construction.

The accounting expert and instrument expert in construction is a Certified

Public Accountant (CPA), and is currently the Vice President of Administration

and Finance in Pasig Catholic College. He is also teaching accounting and

management related courses for the college department. The English expert is

also a professor in Pasig Catholic College teaching Psychology, and is

recommended by our research professor for her English skills and knowledge.
 The researcher will also seek the guidance of a statistician from Pasig

Catholic College in testing the reliability of the instrument by using Cronbach’s

Alpha Radius from 0 – 1.

Additionally, the instrument will undergo a usability test to evaluate its

content by randomly selecting respondents from Barangay Rosario, Pasig City

who will take part in pilot testing of the questionnaire. Hence, the selected

respondents will no longer be added to the final distribution of the research

instrument.

Moreover, the content of the instrument will have to be unanimously

approved by the validators during the final draft of the study.

Data Gathering Procedure

The mode of data gathering to be used in this survey is questionnaire

method. In gathering the data, the researcher will carry out the following

procedure. A letter will be created and sent to the Dean of Pasig Catholic College

for her information and approval of the research that is to be conducted. The

researcher shall state her name, will present herself as a student of Pasig

Catholic College in the college department who is at the moment required to

conduct a research about Accountancy. The content of the letter will also include

the title of the study, a brief description of the study, and the benefits that will be

derived from the research. Furthermore, it will consist information about the

respondents of the study in Barangay Rosario, Pasig City during the fiscal year of

2021.
 Upon the approval, a letter will be sent to the barangay chairman seeking

for his permission to conduct a research in Rosario. Lastly, another letter will be

made to the respondents stating the researchers’ purpose and title of the study,

asking for their vibrant participation and cooperation in conducting the research.

Data Processing

Data on the personal characteristics of the respondents will be gathered

through survey questionnaire. Each of the respondent will be given a structured

set of questions which will be formulated by the researcher. Data about the

attitude, behavior of the respondents will also be gathered through the survey

questionnaire. The data gathered will be manually encoded into the Microsoft

Excel and subsequently converted to statistical packages or social sciences

(SPSS).

The data collected will be tabulated and processed using the statistical

packages or social sciences (SPSS). In order to analyze and interpret the data

gathered, the following statistical measures will be used: the manual accounting

system to the work performance of the accounting staff in small businesses in

Pasig City will be analyzed using a 5-point Likert scale.

For the demographic profile of the respondents, frequency counts and

percentage method will be used.

The formula for percentage is stated below:

% = f / n x 100

Where:

% = Percentage

F = Frequency

N = Total number of cases

100 = Constant Value

To find out the impact of the manual accounting systems in small

businesses in Pasig City, weighted mean and standard deviation will be used.

The formula for weighted mean is stated below:

WM = WF/N

Where:

WM = Weighted Mean

WF = Weighted Frequency

N = Total number of respondents

The formula for standard deviation (population) is stated below:

√
2
∑ ( x−μ )
σ=
N
Where:

X = Value in data distribution

μ = Population mean

N = Total number of observations

Similarly, to determine the work performance of the accounting staff in

small businesses in Pasig City, weighted mean and standard deviation will be

used. To determine out if there is a significant relationship between the manual

accounting system and work performance of the accounting staff in small

businesses of Pasig City, Pearson R will be used.

The formula of Person r is stated below:

r =N ∑ xy −¿ ¿ ¿

Where:

N= number of sample size

∑ xy = sum of the product of the independent and dependent variable

∑ x = sum of independent variable

∑ y= sum of dependent variable

∑ x 2= sum of squared of independent variable

∑ y2= sum of squared of dependent variable