5 6264866871082748465

CHAPTER 1
PROBLEMS AND REVIEW OF RELATED LITERATURE
This chapter introduces the topic that has been chosen. It presents
a review of related literature, a theoretical framework, a
conceptual framework, a statement of the problem, the hypothesis
of the study, significance, scope and delimitation, and an
accompanying definition of terminologies.
I. Introduction
In the vast modern age of technology, the world has
increasingly become associated with advancement and innovation,
which has created strong competition among organizations. Along
with that, application software was invented to support various
burdens in the work field, which plays a significant role in
achieving the organization's goals and objectives. Hence, an
accounting tool has been one of the concerns that each organization
wanted to utilize to cope with the challenges and be able to survive
in the ever-changing competitive business world.
In today's rapidly evolving business landscape, technological
advancements have become a driving force behind business’
efficiency and productivity. Among the myriad of tools available,

1
Microsoft Excel has emerged as a versatile software application
used extensively in enterprises worldwide. Excel's ability to
handle complex calculations, organize data, and create insightful
visualizations has made it an indispensable tool for businesses
across various industries.
In fact, based on Coursera (2023), as of April 2023, over 1
million companies worldwide use Microsoft Excel.
Moreover, according to Gillis (2023), Microsoft Excel is a
part of the Microsoft Office suite and was first introduced in 1985
and quickly gained popularity due to its user-friendly interface
and diverse functionalities. Over the years, Microsoft Excel has
evolved into a powerful analytical tool that enables enterprises
to analyze vast amounts of data, create financial models, track
performance metrics, and generate reports. Its widespread adoption
is driven by its accessibility, flexibility, and affordability,
making it accessible to businesses of all sizes.
However, according to Dang et al., (2020), organizing
accounting work in the context of computerization is one of the
most important jobs for enterprises in general and Small to medium
Enterprises (SMEs) in particular. Due to limited financial and
human resources, SMEs still select an appropriate support tool that

2
is suitable for their financial capacity and low level of human
resources, to achieve productivity and efficiency. The application
of Microsoft Excel in SMEs has benefitted tremendously the quality
of accounting information in businesses. It helps businesses
proactively provide information quickly and effectively, to help
them compete better as to information. It is necessary to determine
how Microsoft Excel software works for SMEs today.
Moreover, according to Rosenberg (2022), Microsoft Excel is a
powerful tool that provides numerous features and functions to
streamline business processes. By studying its application,
enterprises can identify ways to optimize Excel’s usage, automate
tasks, and improve overall efficiency. This can result in time
savings, reduced errors, and increased productivity.
With this study, understanding the application of Microsoft
Excel as accounting tool can further assist enterprises to leverage
Excel's capabilities to make informed decisions. It facilitates
collaboration and communication within an organization particularly
important in teams that heavily rely on Excel for data analysis,
financial modeling, and other activities.
By understanding the application of Microsoft Excel's
features and functionalities, businesses can harness its full

3
potential to drive success and achieve their goals. That is why
researchers came up with this study to analyze the application of
Microsoft Excel of Small and Medium-sized enterprises based on its
attributes as accounting tool. Discovering the strengths and
weaknesses of Microsoft Excel can guide businesses in optimizing
its usage and identifying areas where alternative solutions may be
more suitable in proposing an action plan. This study enables the
researchers to further assess Microsoft Excel’s attributes based
on the perception of the selected respondents within enterprises.
By that, they relied on the findings of the study to craft the
proposed action plan.
4
II. Review of Related Literature
Applying Microsoft Excel as Accounting Tool based on Management of
Data
The selection of Microsoft Excel as a software for accounting
automation in MSMEs is the right choice because it is designed to
help calculate, tabulate, store, map, and compare data for current
and future reference. Microsoft Excel is also a built-in
application from Microsoft that is included in every personal
computer, which turns out to have an additional editor feature that
makes it a number processing application and accounting data
processor (Kaligis, et al.,2023).
Applying Microsoft Excel as Accounting Tool based on Flexibility
Microsoft Excel is software that can automate accounting and
can be done quickly and precisely, it is even much easier to
operate. It is easier to set up. It can be more flexible than a
computerized accounting system Daspit & D’souza (2017). Moreover,
according to Michael Galesso (2017) Microsoft Excel is one of the
software programs offered in the Microsoft Office Suite. The Office
was created and Launched by the Microsoft Corporation and designed
5
to offer convenience in the completion of everyday calculating and
organizing to users of the Windows, macOS, iOS and Android systems.
Applying Microsoft Excel as Accounting Tool based on Information
Security
Microsoft Excel provides stronger security measures when
certain data needs to be kept confidential. Information stored in
a Microsoft Excel spreadsheet is highly secure because it offers
multiple options for protecting files - including password
protection and encryption - against unauthorized access or
modifications made by hackers or malicious software viruses and
malware.
There's also an audit trail feature within the program which
keeps track of every action taken within the file as well as who
did it - making sure that any changes made are accounted for at all
times. This makes it ideal for businesses handling sensitive
financial data as well as anyone who wants extra peace of mind when
it comes to their private documents stored on their computer system
(Lenovo, 2023).
Applying Microsoft Excel as Accounting Tool based on Usability
6
The design and use of Excel accounting software is relatively
easy. The information is correctly processed and quickly and
reported in a timely manner. The book forms and accounting reports
are designed simply. The design is much lower than for other
accounting software. Excel accounting software for SMEs has been
used by many SMEs (Sang, 2018).
Applying Microsoft Excel as Accounting Tool based on Practicality
Based on Noble Desktop (2023), Microsoft Excel is an
affordable and versatile spreadsheet application. It can learn your
patterns the more you use it so that it can organize your data and
ultimately save time. In addition, the web-based version of
Microsoft Excel and all of Office can also be accessed for free on
the internet.
Applying Microsoft Excel as Accounting Tool
According to Abhishek Singh (2020), It is important to
understand how the use of Microsoft Excel for small business
accounting has changed over the past few years. Microsoft Excel
continues to be one of the most popular accounting tools used by
small business finance managers. It allows such businesses to focus
on basic accounting tasks, such as budget planning and forecasting.
7
It has a lot of benefits because it comes with ready-made templates
for all sorts of accounting functions, such as invoices, budgeting,
and more.
According to Glenn San Luis (2020), while many would agree
that Microsoft Excel software is indispensable for large
corporations with teams of finance staff, those who own smaller
businesses might wonder if alternative methods of software might
be more suitable for them. For SMEs and their employees, learning
and mastering Microsoft Excel delivers various processes and
efficiency gains. And note that it is not only used in the
Accounting and Finance departments, but it could also be used in
almost all departments or functional areas of the organization.
Even for SMEs, Microsoft Excel is still one of the major tools that
companies use to retrieve and track information easily, across the
organization.
According to Lin (2012), Microsoft Excel is also capable of
being formed for SME business, with Microsoft Excel's ability to
help this type of business become very broad and involved in several
integrated areas. Usually, SME entrepreneurs do not have too much
data, and this makes Excel an ideal solution to have a small
8
database for SME entrepreneurs and integrate this data into their
business fields.
Moreover, according to Heni, Murti, Tyna, Julianto (2022),
Microsoft Office Excel provides many benefits to simplify
calculations, especially in the case of bookkeeping. Therefore,
this Microsoft office excel activity is expected to help MSME movers
use Microsoft Office Excel optimally and feel the benefits of
implementing the ease of it. Having skills in using Microsoft Office
Excel is very helpful in carrying out business operations, even for
SMEs. Because every day, SMEs must produce datasets with a
reasonably high volume, such as recording income and expenditure
data. From the many data sources, Microsoft Office Excel can help
make it easier to collect, analyze and operate the data quickly and
easily to understand, even for beginners.
9
III. Theoretical Framework
This study was anchored by Task-Technology Fit Theory (TTF)
of Goodhue, D. L., & Thompson, R. L. (1995). This theory states how
technology is aligned with the tasks performed by the users. In the
context of study, TTF can help assess the compatibility of Microsoft
Excel's features to accounting functions.
Technology has become a fundamental aspect of our society and
is embedded into everyday life. The way individuals and
organizations work and think continues to be shaped by, and shape,
various technologies. Due to the complexity of the interactions
between factors such as the technology, users, systems, tasks and
process it is extremely difficult to directly measure the value
that technology creates in a system. Alternative measures have
therefore been proposed to quantify the impact of technology. One
such measure, widely accepted in Information System (IS) research,
is the Task-Technology Fit (TTF) theory which has been suggested
to be “one of the most important developments in information system
theory”. TTF provides a means to quantify the effectiveness of
technology in organizations.
10
Technology is defined as the tools that are used by
individuals to execute, or assist in executing, their tasks.
Similar to the discussion of task characteristics, different
technologies will have different characteristics which are defined
by the researcher with consideration to the environment which it
used in and the tasks it aims to support. TTF is defined as the
extent to which a technology assists an individual in performing
his or her tasks and is consequently affected by the interaction
between the characteristics of the task and the functionalities of
the technology. Typical dimensions that are considered when
measuring fit, as defined by Goodhue and Thompson, are data
quality, data locatability, authorization to access data, data
compatibility, ease of use/training, production timeliness,
systems reliability, information system relationship with users.
The purpose of the study by Goodhue and Thompson was to show
that a positive impact of technology requires a good TTF. Thus,
when technology fits the task characteristics it aims to support,
it should result in improved performance. The improved performance
is typically due to the smooth execution of the task, reducing the
cost of performing the task, or making the task easier to
accomplish.
11
IV. Conceptual Framework
The first phase is Input, which includes the profile of the
respondents in terms of age, sex, length of service, and degree.
Moreover, applying Microsoft Excel as Accounting Tool of Small and
Medium-Sized on enterprises were described based on Management of
Data, Flexibility, Information Security, Usability, and
Practicality and this also analyzed accounting functions performed
in Microsoft Excel as Accounting Tool of Small and Medium-sized
enterprises.
The second phase is Process, including the data gathering
procedure. Researchers utilized a survey type of questionnaire to
obtain data by classifying respondents based on the preference
provided by the researchers within the distributed questionnaire.
Wherein, the statistical treatment or tool applied for the
calculation of the gathered data is frequency and percentage,
weighted mean, Pearson Moment of Correlation, and T-test. Those
data were analyzed and interpreted by means of illustration or
tables.
12
The third phase is Output, where the researchers proposed an
Action Plan to improve the application of Microsoft Excel as
Accounting tool based on the findings of the study.
INPUT PROCESS OUTPUT

Profile of the Data Gathering
Enterprise in terms Procedure
of: • The researchers
• Age sought to utilize a
• Sex survey type of
• Length of Service questionnaire to
• Degree obtain data by
classifying Action Plan to Propose
respondents based to improve the
Applying Microsoft on the preference Application of
provided by the Microsoft Excel as
Excel as Accounting
researchers within Accounting Tool
Tool on enterprise in
terms of: the distributed
• Management of Data questionnaire.
• Flexibility
• Information Statistical Treatment
Security or Tool
• Usability • Frequency and
• Practicality Percentage
• Weighted Mean
Accounting Function • Pearson Moment of
performed in Microsoft Correlation
Excel • T-Test
Analysis And
Interpretation of Data
Figure 1. Research Paradigm
13
V. Statement of the Problem
This study sought to analyze Applying Microsoft Excel as Accounting
Tool of Small and Medium – Sized Enterprises in Selected Barangays
of Cabanatuan City, Nueva Ecija. Specifically, to provide answers
from the given questions presented below to modify the reasoning
constructed by the researchers.
1. How may the profile of the respondents be described in terms
of:
1.1 Age;
1.2 Sex;
1.3 Length of Service; and
1.4 Degree?
2. How may the Application of Microsoft Excel as Accounting Tool
of Small and Medium – Sized Enterprises be described in terms of:
2.1 Management of Data;
2.2 Flexibility;
2.3 Information Security;
2.4 Usability; and
2.4 Practicality?
14
3. What are the accounting functions performed in Microsoft Excel
as Accounting Tool of Small and Medium-Sized Enterprises?
4. Is there a significant relationship between the age, length
of service, and the application of Microsoft Excel as Accounting
Tool of Small and Medium – Sized Enterprises?
5. Is there a significant difference among the sex, degree, and
the application of Microsoft Excel as Accounting Tool of Small and
Medium – Sized Enterprises?
6. Based on the result of the study, what action plan may be
proposed to improve the application of Microsoft Excel as an
Accounting Tool of Small and Medium-Sized Enterprises?
VI. Hypothesis
The researchers sought to test the following null hypothesis:
Ho1. There is no significant relationship among the age, length of
service, and the application of Microsoft Excel as an Accounting
Tool of Small and Medium-Sized Enterprises.
Ho2. There is no significant difference among the sex, degree, and
the application of Microsoft Excel as an Accounting Tool of Small
and Medium-Sized Enterprises.
15
VII. Significance of the study
The findings of the study redound to the contribution and
analyzation regarding Applying Microsoft Excel as Accounting Tool
of SMEs.
To the Small and Medium Enterprises (SMEs), they are the main
beneficiaries of this study because this served as a key to consider
on how enterprises can leverage its features for accounting
processes. This could provide valuable insights for SMEs seeking
practical and accessible solutions to streamline their potential,
leading to increased productivity. Excel’s user-friendly interface
facilitates accessibility, enabling non-experts to handle basic
accounting tasks efficiently.
To the Students, this equipped the students specifically
College of Management and Accountancy (CMA) Students and Technology
related courses them with practical skills, that can enhance their
data analysis capabilities, prepare them for real-world accounting
practices, impart hands-on learning experience, and foster
adaptability in the dynamic field of Microsoft Excel.
16
To the PHINMA Araullo University, this study enhanced the
relevance of preparing students for specific set of skills they
might offer to the student before they enter their respective chosen
career. It allowed the school organization to be aware of the
significance of acquiring Microsoft Excel’s skills.
To the Community of Cabanatuan City, In the context of future
business owners is significant as it empowers them with practical
financial management skills through Microsoft Excel. This knowledge
equipped future entrepreneurs to make informed decisions, manage
resources efficiently, navigate the financial intricacies of
running a business and enhance their adaptability to evolving
business by incorporating technology into traditional accounting
practices.
To the Researchers, researchers gained knowledge and
background regarding the application of Microsoft Excel as
Accounting Tool. The study served as their guide and basis towards
the improvement of one’s set of skills within an enterprise.
17
To the Future Researchers, to future researchers, this would
serve as a valuable reference for providing insights into the
integration of Microsoft Excel on SMEs accounting practices.
VIII. Scope and Delimitation
This study is entitled “APPLYING MICROSOFT EXCEL AS
ACCOUNTING TOOL OF SMALL AND MEDIUM – SIZED ENTERPRISES IN SELECTED
BARANGAYS OF CABANATUAN CITY, NUEVA ECIJA”. Which limits its
coverage of analysis on Applying Microsoft Excel as Accounting tool
of Small and Medium – sized enterprises. This study was conducted
for a period of 1st and 2nd semester, year 2023.
This research focused on the collection of data in selected
barangays of Cabanatuan City such as Barangay Bitas, Mabini, Quezon
District, and Sangitan which are commercial areas. It is where
businesses and economic activities thrive, and based on Define
Business Term of 2023, most small and medium – sized enterprises
and even large enterprises choose this area to deploy sales,
marketing, public relations strategies, and all the effort to
succeed and attract their target customers in this type of area.
18
Therefore, this research focused within the commercial areas of
Cabanatuan City, Nueva Ecija.
And, according to Jusoh & Ahmad (2019), Microsoft Excel is
still the choice of accounting instruments at SMEs companies that
is why this study focused only on Small and Medium-Sized
Enterprises.
Moreover, this study limits the scope of accounting functions
to Data Entry and Storage, Accounting and Budgeting, Data Analysis
and Reporting, Expense Tracking, and Performing Calculation because
based on JavaTpoint (2023), these are the major uses of Microsoft
Excel based on the needs and objectives of the organization.
As the research focused on the Application of Microsoft Excel
as Accounting Tool, the respondents of this study were users of
Microsoft Excel under accounting. Because, according to Rosenberg
(2022), Microsoft Excel is a powerful tool but cannot function
alone. It takes a savvy computer user to take advantage of
everything Excel has to offer to provide the best results for their
company. Therefore, it is either the employees (bookkeeper,
accounting clerk, cashier) or the owner itself which believe to
19
have enough experience, training, and knowledge needed with the
purpose of the study.
Hence, this research shows how applications of Microsoft Excel
enact towards enterprises, which played a significant role in
analyzing its application. It confines itself to gathering data
from the direct users of Microsoft Excel within an enterprise and
relied on the results of the study for the creation of the proposed
action plan.
20
IX. Definition of Terms
The following terminology is operationally defined to ensure better
concepts and a more transparent understanding of this work.
Accounting Clerk - The term Accounting Clerk refers to keeping
track of finances, creating reports, and documenting a variety of
activities to support accounting operations and help the business
reach its objectives.
Accounting Function - Accounting Function is a term that involves
the systematic recording, analysis, and reporting of financial
transactions. The accounting function serves to provide an
accurate and comprehensive overview of the financial health of the
business, aiding in decision-making, and financial planning.
Accounting Tool - The term refers to software or applications
designed to facilitate and streamline various accounting and
financial tasks. These tools assist in tasks such as bookkeeping,
managing accounts payable and receivable, generating financial
reports, tracking expenses, and ensuring compliance with financial
regulations.
21
Enterprise - Enterprise is a term that refers to a business,
enterprise, or group that carries out business, industrial, or
entrepreneurial endeavors. It entails bringing together people,
tools, and procedures with a clear intention to generate things or
services for sale or to achieve particular objectives.
Flexibility - The term flexibility is an open frameworks and
standards. As a result, it can operate on any platform or device
and can be installed anywhere thanks to its foundation in open web
standards. It encompasses databases and operating systems.
Information Security - Information Security is a term that protects
the privacy and safety of all data, including business
transactions, and it secures the data safe from unknown access.
Management of Data - The term Management of Data is the process of
gathering, arranging, storing, and using information efficiently
is known as data management in a commercial setting. It includes
procedures and tools for gathering, storing, protecting, and
analyzing data in order to extract knowledge that can help with
well-informed business decisions.
Microsoft Excel - Microsoft Excel is a term that spreadsheet
software is used extensively in business enterprises for data

22
organization, analysis, and manipulation. Microsoft Excel is
commonly utilized for budgeting, financial analysis, inventory
management, and a wide range of other tasks, aiding in decision-
making and improving overall efficiency in business operations.
Practicality - Practicality is a term that refers to the approach
or decisions made with a focus on realistic, feasible, and
effective solutions. It involves choosing strategies, actions, or
investments that are sensible, cost-effective, and likely to yield
tangible results within the constraints of resources and
circumstances.
SMEs - Small and Medium Enterprises (SMEs) is a term that refers
to a category of companies that falls between large companies and
micro-enterprise. SMEs are characterized by size, turnover and
number of employees.
Usability - Usability is a term that refers to the extent to which
a system, product, or software is easy to use, efficient, effective,
and satisfying for employees or users within an organizational
setting. It is also to clarify the measurements that Microsoft
Excel uses to assess how simple it is for users to do specific
activities.
23
CHAPTER II
Research Methodology
This chapter presents an overview of the methodology used in the
research. It shows the research design, research respondents,
research site, sample and sampling, materials and instruments to
be used, validity of the questionnaire, reliability of the
questionnaire, data gathering procedure, and data analysis.
I. Research Design
The study employed the quantitative descriptive method of
research. This method of research involves describing, recording,
analyzing, and interpreting conditions that exist. According to
Scates and Goodwin (2017), the descriptive method is concerned with
the identification of the status of events, people, or subjects as
they exist. This research design was chosen since it is the design
suited to the nature of this study. This can best describe and is
the best fit for assessing the Management of Data, Flexibility,
Information Security, Usability, and Practicality of Applying
Microsoft Excel as Accounting Tool of Small and Medium-Sized
Enterprises in Selected Barangay of Cabanatuan City, Nueva Ecija.
24
II. Respondents of the study
The respondents of this study were users of Microsoft Excel
under accounting. It is either the employees (bookkeeper,
accounting clerk, cashier) or the owner itself who believed they
have enough experience, training, and knowledge needed for the
purpose of the study.
Table 1. Distribution of the Respondents per Enterprise
NO. OF EMPLOYEE WHO PERCENTAGE

PERFORM ACCOUNTING USING
NAME OF ENTERPRISES MICROSOFT EXCEL
THE BACKYARD RESTOBAR 1 1.28%
JOMARI PAYAWAL DELA CRUZ 2 2.56%

PRINTING SHOP
PETRO FIL GASOLINE STATION 2 2.56%
DOUBLE JAY AD VENTURES INC. 1 1.28%
MOTOPOSH MOTORCYCLE DEALER 2 2.56%
PROSPERE RESTO CAFÉ 2 2.56%
SANDY'S MOTORSHOP 2 2.56%
25
BIKE BUDDIES MOTORCYCLE 1 1.28%
PARTS AND ACCESSORIES SHOP
EXPONENT MOTOR CORPORATION 2 2.56%
JOHNMED PHARMA AND MEDICAL 1 1.28%

SUPPLIES
CEBUANA LHUILLIER 2 2.56%

PAWNSHOP
MARPS BIKE SHOP 1 1.28%
LJS PRINTING SERVICES 1 1.28%
L.C.K. GENERAL MERCHANDISE 1 1.28%
MARQUEZ LUMBER TRADING 1 1.28%
CONNECTISERVE COMPUTER 2 2.56%

SERVICES
LBC EXPRESS, INC 2 2.56%
AFPFC MULTI-PURPOSE 1 1.28%

COOPERATIVE
MYKYMY ACE TRAVEL AND TOURS 2 2.56%
JCY LUMBER 1 1.28%
3R's Wateryan 1 1.28%
26
PHILIPPINE CHARITY 1 1.28%
SWEEPSTAKES OFFICE
NE CAKES AND RESTAURANT 2 2.56%
J & T EXPRESS 2 2.56%
YUMIN KOREAN BUFFET 1 1.28%
WOODSIDE 1 1.28%
CHOCOLA TEA MILK TEA SHOP 1 1.28%
PETRON 2 2.56%
SIZZLING HOT N' TASTY 1 1.28%
LIFETIME ADVANCE LASER 1 1.28%

TECHNOLOGY
MITSUBISHI HEAVY 2 2.56%

INDUSTRIES
MISTER DONUT 2 2.56%
PALAWAN PAWNSHOP AND 2 2.56%

PALAWAN EXPRESS PERA
PADALA
A.G. COMBE TIRE SUPPLY 1 1.28%
RED STAR E BIKE AND 1 1.28%

ACCESSORIES
27
WINGS TIME' FOOD HOUSE 1 1.28%
STRONGHAND AMMUNITION 1 1.28%
CCB REF & AIRCONDITIONING 1 1.28%

CENTER
BOARDWALK 1 1.28%
PAY AND GO TRAVEL, 1 1.28%

TICKETING, AND PAYMENT
CENTER
PRAKTICA 2 2.56%
SHELL SELECT 2 2.56%
BUBBLE CUP 1 1.28%
OH MY GOODNESS MILK TEA AND 1 1.28%

COFFEE
AMERICAN RIBS AND WINGS 1 1.28%
CRYSTAL CLEAR 1 1.28%
JDM UNITED CREDIT 2 2.56%

CORPORATION
CMYK CARTRIDGES TRADING 1 1.28%
J & T EXPRESS 4 5.13%
28
MRS. G CAKESHOP 1 1.28%
RAMEN AND GRILL STATION 1 1.28%
MARCUS GENERAL MERCHANDISE 1 1.28%
VALUE MED GENERICS PHARMACY 1 1.28%
JUNNEL'S MOTORCYCLE PARTS 1 1.28%

(CASTROL)
J&N PAINT CENTER 1 1.28%
GABSY 1 1.28%
TOTAL 78 100%
Table 1 shows the respondents of the study on selected
barangays in Cabanatuan City, Nueva Ecija. It illustrated the list
of respondents who used Microsoft Excel as their accounting tool
in business and the number of employees of each enterprise that
actually operates and manages Microsoft Excel.
29
III. Locale of the study
Cabanatuan City is one of the municipalities inside the
province of Nueva Ecija, the largest city in Nueva Ecija. Hence,
the researchers consider the geographical place they conducted the
study. Given the fact that Cabanatuan City has approximately 89
barangays. The researchers chose the barangays that has many
enterprises within commercial areas. Since SME settles in a place
where they can easily recognize and attract their target customer.
The selected barangays were Barangay Bitas, Mabini, Quezon
District, and Sangitan is selected.
FIGURE 2. VICINITY MAP OF CABANATUAN CITY

30
IV. Sampling Technique
Total enumeration sampling is the sampling technique used
in this study. It is a type of sampling technique wherein the
researchers chose to examine the entire population based on the
research criteria. The population under consideration comprises
employees of SMEs around Cabanatuan who perform accounting using
Microsoft Excel.
V. Materials and Instrument Applied
1. The Questionnaire. For this study, the researchers used a
printed survey questionnaire to assess the Management of Data,
Flexibility, Information Security, Usability, and Practicality of
Applying Microsoft Excel as Accounting Tool of Small and Medium-
Sized Enterprises in Selected Barangay of Cabanatuan City, Nueva
Ecija. The questionnaire was crafted by the researchers and was
enriched by various sources on this topic.
1.2 Description. The questionnaires have two parts. The first
part deals with the profile of the respondents, while the second
part is to assess the Management of Data, Flexibility, Information
Security, Usability, and Practicality of Applying Microsoft Excel
31
as Accounting Tool of Small and Medium-Sized Enterprises in
Selected Barangay of Cabanatuan City, Nueva Ecija.
Scoring. The researchers used the Likert scale as the
instrument for the survey questionnaires. This is a fundamental
tool in gathering data that is needed for this study. The items in
the questionnaire made use of the 4-point Scale for the responses
with the equivalents and verbal interpretations as follows:
Table 2. Table of Equivalence
VALUE RANGE VERBAL DESCRIPTION QUALITATIVE DESCRIPTION
4 3.25-4.00 Strongly Agree Highly Applied
3 2.50-3.24 Agree Moderately Applied
2 1.25-2.49 Disagree Not Applied
1 1.00-1.74 Strongly Disagree Irrelevant
Validity of the Questionnaire
The second part of the questionnaire was subject to validation
because it was formulated personally by the researchers with the
help of the advisers and panelists. A draft of this was tried out
among fifth teen (15) random employees. The try-out phase was
32
personally conducted by the researchers to solicit feedback as to
the complexity of the items answered. The comments and suggestions
given by these respondents were the basis for revising the final
questionnaire.
Reliability of the Questionnaire
In testing the reliability of the questionnaire, the
researchers conducted a dry run test after the administration and
checking of the questionnaire. The results from the dry run were
recorded and statistically treated to establish reliability. The
value of Cronbach Alpha was .924, which means that the instrument
is highly reliable for use in this study.
VI. Data Gathering Procedures
Request letter. First, the researchers requested a letter from
the Municipality of Cabanatuan City, Nueva Ecija in order to acquire
a list of enterprises along Maharlika Highway.
Pre-survey. The researchers first conducted a pre-survey to
obtain the total numbers of respondents within an enterprise. Each
enterprise was asked who utilized Microsoft Excel as Accounting
33
Tool, the total number of employees who performed accounting by
means of Microsoft Excel and classified themselves whether they
classified as Small or Medium-sized enterprises.
Questionnaire. The questionnaire modified by the researchers
were presented, reviewed, and approved by the research adviser
together with the Dean of the College of Management and Accountancy
before distributing to the respondents.
Consent and selection of respondents. The researchers first
sought the approval of the respondents by delivering the letter
previously accepted by the adviser and school dean to know their
availability to participate during the duration of the survey.
Distribution and Collection of Questionnaires. The researchers
distributed the questionnaire through a printed survey
questionnaire to employees who utilized Microsoft Excel as
Accounting Tool within an enterprise.
Tabulation, Interpretation, and Analysis of the Data. After
gathering all the data, the researchers tabulated, interpreted, and
analyzed the data.
34
VII. Data Analysis
After gathering all the completed questionnaires, the
researchers collated and analyzed the data. The researchers used
statistical tools such as frequency, percentage, weighted mean,
correlation, and difference to facilitate the analysis and
interpretation of the data.
In describing the profile of the respondents, the researchers
utilized frequency and percentage.
Frequency and Percentage distribution – Researchers sought to apply
this type of statistical tool to present data that indicates the
proportion of observations for each data point or set of data
points, specifically the profile of the respondents. When
representing the relative frequency of survey replies and other
data, it is a particularly helpful technique.
To interpret and analyze the data on the Management of Data,
Flexibility, Information Security, Usability, and Practicality of
Applying Microsoft Excel as Accounting Tool of Small and Medium-
Sized Enterprises in Selected Barangay of Cabanatuan City, Nueva
Ecija, a weighted mean was used.
35
Weighted Mean – To further evaluate the application of Microsoft
Excel as an accounting tool, the researchers utilized this
statistical treatment in calculating a theoretically expected
outcome where each outcome has a distinct probability of occurring.
In establishing a significant relationship between age, length of
service and the application of Microsoft Excel as Accounting Tool
of Small and Medium-Sized Enterprises, Pearson of Moment of
Correlation was used.
Pearson – This was used by the researchers for it is applied to
find the degree of the association or correlation of two sets of
variables to test the significant relationship between variables.
Lastly, in identifying a significant difference between sex,
degree, and Application of Microsoft Excel as Accounting Tool of
Small and Medium-Sized Enterprises, T-test was utilized.
T-test - is a statistical test that is used to compare the means
of two groups. It is often used in hypothesis testing to determine
whether a process or treatment actually has an effect on the
population of interest, or whether two groups are different from
one another.
36
CHAPTER III
Interpretation and Analysis of Data
1. Profile of the Respondents
1.1 Age
Table 3. Distribution of the Respondents According to Age
Frequency Percentage
Age (F) (%)
21- 25 years old 24 31%
26-30 years old 31 40%
31-35 years old 15 19%
36-40 years old 5 6%
TOTAL 78 100%
Table 3 shows the frequency and percentage distribution of the
profile of the respondents in terms of age.
As may be viewed from the table, out of 78 respondents, there
were 24, or 31%, ages 21-25 years old; 31, or 40%, ages 26-30 years
old; 15, or 19%, ages 31-35 years old, 5 or 6% were ages 36-40
years old, 2 or 3% were ages 41-45 years old and 1 or 1%, were ages
37
46-50 years old. The data implies that the majority of the
respondents were aged 26-30 years old.
This finding is consistent with the research of Wavestone
(2018), who stated that being the first generation to be born in
a digital era, millennials are tech-savvy and consume technology
in a different way to previous generations. Neilsen identifies
the use of technology as the factor that most makes this generation
unique. As the ages of millennials, it ranges from 27 to 42 which
includes the ages 26 to 30 of the respondents. In general,
millennials, more than any other generation in the workforce, can
rapidly pick up new technology and master it. They can grasp new
business tools much quicker than some senior workers, which is a
real advantage in a fast-paced environment with continuous
changing technology.
1.2 Sex
Table 4. Distribution of the Respondents According to Sex
Sex (F) (%)
Male 39 50%
Female 39 50%
TOTAL 78 100%
38
Table 4 illustrates that in terms of Sex, out of 78
respondents, there were 39, or 50%, males, while 39, or 50%,
respondents were females. The gathered data shows that both sex are
equal.
This finding is aligned with the study of Matthew & William
(2020), which stated that in the workplace, women are now as good
as men when it comes to computer performance. Study participants
were randomly assigned basic, intermediate or advanced problems on
laptops, tablets or mobile devices, while seated, standing or
walking slowly. They found no difference in the performance between
men and women.
1.3 Length of Service
Table 5. Distribution of the Respondents According to Length of
Service
Length of Service (F) (%)
0-6 months 17 22%
6 months to 1 year 11 14%
1-2 years 16 21%
3-4 years 22 28%

39
5-6 years 8 10%
7-8 years 1 1%
9-10 years 3 4%
TOTAL 78 100%
In table 5, it may be viewed that out of 78 respondents, 17
or 22%, rendered less than six months of service; 11 or 14%
categorized to 6 months to 1 year length of service, 16 or 21%
rendered 1 to 2 years of service, 22 or 28% rendered 3 to 4 years
of service, 8 or 10% rendered 5 to 6 years of service, 1 or 1%
rendered 7 to 8 years of service and lastly, 3 or 4% rendered 9 to
10 years of service. This data implies that the majority of the
respondents rendered 3-4 years of service.
This finding is consistent with Kandhro, D. (2014) which
stated that people with more than three years of experience are
extremely valuable to businesses or organizations. Employees who
have been with the company for more than three years have a higher
likelihood of being inventive and knowledgeable enough to learn
the process of utilizing application software, which leads to the
discovery of breakthroughs that propel the company forward and
generate profits.
40
1.4 Degree
Table 6. Distribution of the Respondents According to Degree
Degree (F) (%)
Bachelor of Science in Accountancy (BSA) 8 10%
Bachelor of Science in Management

Accounting (BSMA) 10 13%
Bachelor of Science in Accounting

Information System (BSAIS) 7 9%
Bachelor of Science in Business

Administration (BSBA) 31 40%
Other Courses specified by the Respondents:
Bachelor of Science in Information

Technology (BSIT) 9 28%
Bachelor of Science in Human Resources

Management (BSHRM) 2 3%
Bachelor of Science in Tourism Management

(BSTM) 1 0.78%
Bachelor of Science in Civil Engineering

(BSCE) 1 0.78%
Bachelor of Industrial Technology (BIT) 1 0.78%
Bachelor of Arts in English (ABE) 1 0.78%
Bachelor of Science in Education (BSED) 3 4%
Automotive 1 0.78%
ICT-Senior High School 2 3%
41
High School Graduate 1 0.78%
TOTAL 78 100%
As may be viewed from table 6, it shows that out of 78
employees, 8 or 10% graduated from BSA course, 10 or 13% graduated
from BSMA course, 7 or 9% graduated from BSAIS course, and 31 or
40% graduated from BSBA course. While other courses specified by
the respondents are BSIT, BSHRM, BSTM, BSCE, BIT, ABE, BSED,
Automotive, ICT-Senior High School, and High School Graduate has a
22 or 28%. This data implies that the majority of the respondents
graduated from BSBA.
This finding is aligned with the study of Formby, et, al.
(2017) which stated that Microsoft Excel skills are important for
BSBA graduates to have at graduation. The authors acknowledge the
differences of opinion, some strong, on the subject, but take the
position that importance of Microsoft Excel skills is significant
to employers and affects opportunities for BSBA graduates whether
or not one agrees that it is the role of the business school
curriculum to address it. Another question that may be asked is
whether it should be the student’s responsibility to learn these
skills independently thus demonstrating the initiative to bridge
the gap between traditional education and the needs of the

42
workplace. Regardless of where educators feel the responsibility
lies, employers are placing increasing importance on these skills
at graduation.
2. Applying Microsoft Excel as Accounting Tool of Small and Medium-
Sized Enterprises
2.1 Management of Data
Table 7. Weighted Mean and Qualitative Description under
Management of Data
Statement Weighted Qualitative

Mean Description
S1. The company applies MS Excel as an 3.45 Highly

accounting tool because it helps to Applied
easily enter data into Excel cells, such
as income, expenses, assets,
liabilities, and other accounting data.

accounting tool because it makes it easy Applied
to validate the data, ensuring accuracy
and consistency in data entry and cell
formatting to prevent errors.

accounting tool because it offers a wide Applied
range of mathematical and financial
functions for accounting purposes and
makes it easy to create formulas to
perform calculations, such as balance
sheets, income statements, financial
ratios, and other accounting data.
43
accounting tool because it easily Applied
visualizes financial data with charts
and graphs to gain insights and make
informed decisions.

accounting tool because it organizes and Applied
filters data to isolate specific
information and utilizes Excel's sorting
and filtering features to view data based
on criteria like date, category, or
amount.
Average Weighted Mean and Overall 3.40 Highly

Qualitative Description Applied
The table shows that the total weighted mean under Management
of Data has a value of 3.40 which is interpreted as “Highly
Applied”. Therefore, applying Microsoft Excel as Accounting Tool
serves its management of data on enterprise in Selected Barangays
of Cabanatuan City, Nueva Ecija in a highly applied manner.
As observe from the table, the highest weighted mean was
3.49 from statement “The company applies Microsoft Excel as an
accounting tool because it offers a wide range of mathematical and
financial functions for accounting purposes and makes it easy to
create formulas to perform calculations, such as balance sheets,
income statements, financial ratios, and other accounting data,”
which when verbally described as “Highly Applied”. Meanwhile,
44
statement 5 “The company applies Microsoft Excel as an accounting
tool because it organizes and filters data to isolate specific
information and utilizes Excel's sorting and filtering features to
view data based on criteria like date, category, or amount.” had
a weighted mean of 3.28 which was verbally described as “Highly
Applied”. This statement got the lowest weighted mean under the
parameter of Management of Data.
This finding is consistent with the study of Fedrica Hanks
(2023), which supports statement 3 who has the highest weighted
mean. He stated that Microsoft Excel was designed to support
accounting functions such as budgeting, preparing financial
statements, and creating balance sheets. It comes with basic
spreadsheet functionality and many functions for performing
complex mathematical calculations. It also supports many add-ons
for activities such as modeling and financial forecasting.
Performing line calculations is a basic accounting task, and Excel
spreadsheets are designed to contain, making Excel more flexible
than an accounting calculator for performing simple calculations
and summations.
45
2.2 Flexibility
Flexibility

Mean Description

accounting tool because it is widely Applied
compatible with other software and
tools, making it easy to import and
export data between different accounting
systems and software.

accounting tool because it is widely Applied
available and can be installed on both
Windows and Mac operating systems. It's
also available as a web application
through Microsoft, making it accessible
from different devices and platforms.

accounting tool because it is user- Applied
friendly and widely taught, as there are
numerous resources, tutorials, and
courses available to help individuals
improve their Excel skills.

accounting tool because they can be Applied
easily shared and distributed, and they
can be opened on most devices. This makes
collaboration with colleagues,
accountants, or auditors
straightforward.
46
accounting tool because to create custom Applied
templates that suit specific accounting
needs, designing worksheets, income
statements, balance sheets, and other
financial documents tailored to the
organization's requirements.

The table shows that the total weighted mean under Flexibility
has a value of 3.34 which is interpreted as “Highly Applied”.
Therefore, applying Microsoft Excel as Accounting Tool serves its
flexibility of each enterprise in Selected Barangays of Cabanatuan
City, Nueva Ecija in a highly applied manner.
As observed from the table, the highest weighted mean was 3.35
from statement 2 and 5 “The company applies Microsoft Excel as an
accounting tool because it is widely available and can be installed
on both windows and Mac operating systems. It's also available as
a web application through Microsoft, making it accessible from
different devices and platforms.” and “The company applies
Microsoft Excel as an accounting tool to create custom templates
that suit specific accounting needs, designing worksheets, income
statements, balance sheets, and other financial documents tailored
to the organization's requirements.” from which when verbally
47
described as “Highly Applied”. Meanwhile, statement 1 “The company
applies Microsoft Excel as an accounting tool because it is widely
compatible with other software and tools, making it easy to import
and export data between different accounting systems and software.”
had a weighted mean of 3.32 which was verbally described as “Highly
parameter of flexibility.
This finding is consistent with the study of Brown, S.(2014)
he stated that Microsoft Excel enables the user to effortlessly
prepare and enter data, make model assumptions, and work
efficiently on any device or operating system, with results shown
immediately in an Microsoft Excel spreadsheet. Its versatility
makes it an ideal tool for a wide range of applications.
In addition, the finding in statement 5 was supported by the
study of Paun, F. 2015, who stated that the built-in Microsoft
Excel program herein presented allows for automating repeated
tasks; editing and customizing recorded to suit our needs; editing
recorded, viewing and modifying them, reading code, editing and
adding comments to it, finding, replacing, moving and copying code;
providing useful personalized complex programs. This program
enables them to organize and customize their financial data more

48
simply, do automatic calculations, and show financial information
in a more precise and structured manner. Microsoft Excel built-in
programs, in order to allow entire work as if everything would have
been programmed by Microsoft itself, beginning from raw data input,
intermediate and final processing, until the results presentation,
everything in only one workbook, by a mere click on the customized
buttons of a standard or personalized toolbar, but absolutely
similar to the original Excel toolbars.
2.3 Information Security
Information Security

Mean Description

accounting tool because it has password- Applied
protecting files and prevents
unauthorized access.

accounting tool because it keeps our Applied
system protected with up-to-date
antimalware and antivirus software to
prevent malicious software from
compromising our Excel files.

accounting tool because it allows the Applied
user to specify a password and lock the
49
file, preventing other users from
opening it.

accounting tool because it provides Applied
regular updates and patches to address
security and stability issues, further
enhancing data protection.

accounting tool because it includes Applied
built-in recovery options, such as auto-
saving and version history, that can
help restore data in the event of
unexpected shutdowns or errors.

The table shows that the total weighted mean under Information
Security has a value of 3.32 which is interpreted as “Highly
serves its attribute of protecting the necessary data of each
enterprise in Selected Barangays of Cabanatuan City, Nueva Ecija
in a highly applied manner.
As observed from the table, the highest weighted mean was
3.41 from statement 1 “The company applies Microsoft Excel as an
accounting tool because it has password-protecting files and
prevents unauthorized access,” which when verbally described as
“Highly Applied”. Meanwhile, statement 4 and 5 “The company applies
Microsoft Excel as an accounting tool because it provides regular

50
updates and patches to address security and stability issues,
further enhancing data protection” and “The company applies
Microsoft Excel as an accounting tool because it includes built-
in recovery options, such as auto-saving and version history, that
can help restore data in the event of unexpected shutdowns or
errors,” had equal weighted mean of 3.26 which verbally described
as “Highly Applied”. These two statements got the lowest weighted
mean under the parameter of Information Security.
The finding is consistent with the study of Nishani (2022),
he stated that a company should be aware of where its sensitive
data is; who has access to the data and that the data is maintained
securely when data, employees, and software changes occur. One of
which is understanding the use of Microsoft Excel on implementing
protection and security among micro enterprises, SMEs and
enterprises in other sectors of production and business. And,
Microsoft Excel offers password-protecting security solutions due
to the complexity of the business environment that can prevent any
malicious acts that can be used against the company.
51
2.4 Usability
Usability

Mean Descriptions

accounting tool because it makes it easy Applied
to sort and filter data, simplifying the
process of focusing on specific subsets
of financial information for analysis
or reporting.

accounting tool because it is much Applied
faster than manual calculations while
also being significantly more accurate.

accounting tool because it proves Applied
invaluable when handling repetitive
calculations, such as updating our
monthly financial reports with data
changes, and we don't have to overhaul
the entire report each time.

accounting tool because it houses Applied
important data, and it's crucial for
decision makers to understand the
narrative within the data to make
critical business decisions.
52
accounting tool because it can be a Applied
valuable accounting tool for businesses
that do not need to comply with standard
accounting principles.

The table shows that the total weighted mean under Usability
has a value of 3.31 which is interpreted as “Highly Applied”.
usability on enterprise in Selected Barangays of Cabanatuan City,
Nueva Ecija in a highly applied manner.
As observed from the table, the highest weighted mean was
3.40 from statement 2 “The company applies Microsoft Excel as
accounting tool because it is faster than manual calculations while
also being significantly more accurate,” which when verbally
described as “Highly Applied”. Meanwhile, statement 1 and 5 “The
company applies Microsoft Excel as an accounting tool because it
makes it easy to sort and filter data, simplifying the process of
focusing on specific subsets of financial information for analysis
or reporting” and “The company applies Microsoft Excel as an
accounting tool because it can be a valuable accounting tool for
53
businesses that do not need to comply with standard accounting
principles,” had a weighted mean of 3.27 and 3.26 which verbally
described as “Highly Applied”. These two statements got the lowest
weighted mean under the parameter of Usability.
This finding is consistent with the research of Nitin G
(2021), he stated that Microsoft Excel is an important tool that
is usefully used in the field of work these days. The board
advantages of applying excel includes faster and more accurate
decision making, quick computations, seamless data visualization,
and many more. Addition to it, with the formula that excel
contains, users can perform rapid calculations automatically. If
you're excellent at Excel, you won't have to execute massive
numerical computations manually, which are typically time-
consuming and frequently filled with human errors.
54
2.5 Practicality
Practicality

Mean Description
S1. The company applies MS Excel as an 3.23 Moderately

accounting tool because Microsoft offers Applied
free trial of Excel as part of the
Microsoft 365 suite, allowing you to use
it for limited time without purchasing a
full license.

accounting tool because there are free Applied
and open-source spreadsheet programs
available, such as LibreOffice Calc and
Google Sheets, which can be used as
alternatives for basic accounting and
financial tasks without the need to
purchase a subscription.

accounting tool because Microsoft 365 Applied
offers various subscription plans, and
the cost can vary depending on the plan
we choose.

accounting tool because it offers a wide Applied
range of functions and features, making
it adaptable to various accounting
tasks, from data entry to complex
financial analysis.
55
accounting tool because it tends to Applied
provide support and updates for its
software over an extended period. We can
continue to use older versions of Excel
without needing to upgrade immediately,
saving on software costs.

The table shows that the total weighted mean under
Practicality has a value of 3.32 which is interpreted as “Highly
serves its practicality on enterprise in Selected Barangays of
Cabanatuan City, Nueva Ecija in a highly applied manner.
As observe from the table, the highest weighted mean was 3.38
from statement 2 “The company applies Microsoft Excel as an
accounting tool because there are free and open-source spreadsheet
programs available, such as LibreOffice Calc and Google Sheets,
which can be used as alternatives for basic accounting and
financial tasks without the need to purchase a subscription,” which
when verbally described as “Highly Applied”. Meanwhile, statement
1 “The company applies Microsoft Excel as an accounting tool
because it can be a valuable accounting tool for businesses that
do not need to comply with standard accounting principles.” had a
56
weighted mean of 3.23 which was verbally described as “Moderately
parameter of Practicality.
This finding is consistent with the study of Vincent Ledbetter
(2023), he stated that both LibreOffice Calc and Google Sheets are
applications that we can use without any limit for free. Excel is
the undisputed king ahead of Calc from LibreOffice and Google
Sheets, since it is an application focused since its birth in 1985
to meet the needs of companies. Absolutely, both LibreOffice Calc
and Google Sheets are excellent alternatives for basic accounting
and financial tasks, providing users with the essential tools
required for managing budgets, tracking expenses, and performing
calculations all without the need for a subscription fee. These
applications offer spreadsheet functionalities that cater to a
wide range of accounting needs, making them accessible and cost-
effective options for individuals and small businesses alike.
Whether you prefer the offline capabilities of LibreOffice Calc or
the collaborative features of Google Sheets, both platforms allow
users to handle fundamental financial tasks efficiently without
the financial commitment associated with subscription-based.
57
3. Accounting Function performed in Microsoft Excel as Accounting
Tool of Small and Medium-sized Enterprises
Table 12. Accounting Function performed in Microsoft Excel as
Accounting Tool of Small and Medium-sized Enterprises
Accounting Function (s) (F) (%)
Data Entry and Storage 40 26%
Accounting and Budgeting 27 17%
Data Analysis and Reporting 39 25%
Expense Tracking 27 18%
Performing Calculation 18 12%
Other Accounting function specified by the Respondents:
Employee Listing 2 2%
TOTAL 153 100%
As may be viewed from table 8, out of 78 employees, 40 or 26%
used Microsoft Excel as Data Entry and Storage, 27 or 17% used
Microsoft Excel as Accounting and Budgeting, 39 or 25% used
58
Microsoft Excel as Data Analysis and Tracking, 27 or 18% used
Microsoft Excel as Expense Tracking, 18 or 12% used Microsoft Excel
as Performing Calculation, and lastly 2 or 2% used Microsoft Excel
on Other Functionality which is employee listing. This data implies
that the majority of the employees used Microsoft Excel as Data
Entry and Storage.
This finding is consistent with the study of Ifire (2023), he
stated that for businesses and companies that need to manage and
store their data quickly and accurately, Microsoft Excel can be a
lifesaver. With its powerful data entry tools and automation
capabilities, Excel can help you enter data faster than ever
before. Excel can be used to quickly enter large amounts of data
accurately with features like AutoFill and Flash Fill. It also has
built-in functions that can help with the verification of data
entry. This makes it an ideal tool for freelancers who need to
ensure accuracy in their data entry as well as storing data. With
Excel, you can easily detect any errors or inconsistencies,
allowing you to make corrections as needed and to keep that data
and have it as accessible as necessary within a storage.
59
4. Significant relationship among Age, Length of Service and
Application of Microsoft Excel as Accounting tool of Small and
Medium-Sized Enterprises
Table 13. Significant relationship between the Age, Length of
Service and Application of Microsoft Excel as Accounting tool of
Small and Medium-Sized Enterprises
Correlations
Management Flexibility Information Usability Practicality

of data security
Pearson
Correlation 0.038 0.052 0.011 0.062 -0.011
Age Sig. (2-
tailed) 0.739 0.651 0.921 0.587 0.922
N 78 78 78 78 78
Pearson
Correlation 0.031 -0.085 -0.173 -0.022 -0.067
Length of Sig. (2-
Service tailed) 0.789 0.459 0.129 0.85 0.561
N 78 78 78 78 78
** Correlation is significant at the 0.01 level (2-tailed).
Table 14 shows the results of the analysis to determine if
there is a significant relationship between the age, length of
service, and the application of Microsoft Excel as an Accounting
Tool of Small and Medium – Sized Enterprises.
60
The data shown above revealed that there is no significant
relationship between the age of the respondents and the management
of data, flexibility, information security, usability and
practicality with a computed value of 0.038, 0.52, 0.11, 0.062,
and -0.011. While the computed values of 0.031, -0.085, -0.173, -
0.022, and -0.067 which indicates that the 5 factors have no
significant correlation to the length of service of the
respondents. Therefore, the null hypothesis number 1 was accepted.
Which states, “There is no significant relationship among the age,
length of service, and the application of Microsoft Excel as an
Accounting Tool of Small and Medium-Sized Enterprises.”
61
5. Significant difference among Sex, Degree and Application of
Microsoft Excel as Accounting tool of Small and Medium-Sized
Enterprises
Table 14. Significant difference among Sex, Degree and
Application of Microsoft Excel as Accounting tool of Small and
Medium-Sized Enterprises
Paired Samples Test

Findings
Sig. (2-
T df tailed)
- There is significant
Sex 27.99 77 <.001 difference
There is significant
Degree 1.94 77 0.056 difference
The table 15 shows analysis of variance revealed that there
is substantial difference among the sex, degree, and the
application of Microsoft Excel as Accounting Tool of Small and
Medium – Sized Enterprises. Therefore, null hypothesis number 2
was rejected, which states, “There is no significant difference
among the sex, degree, and the application of Microsoft Excel as
an Accounting Tool of Small and Medium-Sized Enterprises”.
In terms of sex, it is aligned with the study of Burnett, et.
al (2013), it stated that sex differences do not suggest that males
are somehow "better" application software users than females. For

62
instance, using unfamiliar features is not always better than using
familiar ones, and tinkering is not always productive.
Furthermore, although sex differences in feature usage,
willingness to tinker, and confidence are all implicated in
results, an individual male or female generally does not bear every
trait associated with his or her sex. Although the statistical
analysis revealed sex differences, a portion of the males still
exhibited traits associated with the majority of females, and vice
versa. As the discussion of recent work shows, informing the design
of programming tools based on the differences
revealed investigation need not penalize either gender-doing so
can help everyone. It also found out that several of the results
from Study of generalized to Excel. First, females" self-efficacy
predicted task success, but the same did not hold true for the
males. Second, low self-efficacy females relied more heavily on
the "familiar type of features, particularly value edits: a
relationship that did not hold for males. Third, these results
could not be attributed to females being better judges of their
weaknesses. Females' comprehension of the software features was no
different than the males' and was not predicted by self-efficacy.
63
And in terms of degree, this finding is aligned with the study
of Grant, D. (2013) which stated that in today's technologically
advanced society, most graduate students are expected to be
computer literate in order to compete in today's global job market.
These computer skills typically include fundamental to advanced
knowledge of word processing, presentation software, and Microsoft
Excel spreadsheet applications. As a result, there may be some
variation in performance. It stated that an employee's literacy to
application software is mainly affected on how they are equipped
to technology during their college and skills can be vary based on
their learnings from college.
64
6. Action Plan on Applying Management of Data, Flexibility,
Information Security, Usability, and Practicality of Small and
Medium-Sized Enterprises of Cabanatuan City, Nueva Ecija.
Table 15. Action Plan on Applying Management of Data,
Flexibility, Information Security, Usability, and Practicality
of Small and Medium-Sized Enterprises of Cabanatuan City, Nueva
Ecija.
MANAGEMENT OF DATA
Areas of Plans/Strategi Persons Time Expected

Concern es/ Involved Frame Outcome
Activities
The To enhance the Owner/ Regularly By enhancing

company use of Employee the use of
applies Microsoft assigned for Microsoft
Microsoft Excel as an accounting, Excel as
Excel as accounting IT Experts accounting
an tool, the tool through
accountin company can training
g tool implement programs will
because training result to a
it programs to higher
organizes educate performance
and employees on and improved
filters advanced Excel skills of
data to functionalitie their
isolate s. employees
specific Additionally, especially in
informati creating utilizing
on and standardized application
utilizes templates for software like
65
Excel’s financial Microsoft
sorting reporting and Excel in
and encouraging terms of
filtering the use of managing
features pivot tables various
to view can streamline necessary
data data data. This
based on organization. will assist
criteria Regularly them to
like updating Excel navigate
data, skills through sorting and
category, workshops and filtering
or tutorials features it
amount. ensures had to
employees stay further
proficient in maximize it
leveraging for
sorting and accounting
filtering purposes.
features for
efficient data
analysis and
reporting.
FLEXIBILITY

Activities
The Enterprises Owners/ Twice in a Knowledge and

company should further Employees week. understanding
applies seek for an IT assigned for are power, IT
Microsoft expert in accounting, professionals
Excel as order to IT Experts can instruct
an understand how you in the
accountin compatibility best way
g tool of Microsoft possible. By
because Excel with their
it is other software guidance and
widely and tools be expertise,
66
compatibl possible owners,
e with especially especially
other when importing employees,
software and exporting can acquire a
and data with set of
tools, various Microsoft
making it accounting Excel's
easy to systems and skills
import software. They specifically
and must be in finding
export confused when and
data dealing with understanding
between its how it can be
different compatibility compatible in
accountin but it is best other
g systems to ask for systems. This
and professionals can avoid
software. and let them confusion and
guide you on can improve
how it works, their
correctly. utilization
of Microsoft
Excel.
INFORMATION SECURITY

Activities
The To enhance Owner/ Regularly Employees

company Microsoft Accounting become more
applies Excel as an Staff/Users aware of
Microsoft accounting security
Excel as tool, the threats and
an organization the
accountin can establish importance of
g tool a keeping
because comprehensive accounting
it training tasks secure.
provides program, Proactive
regular emphasizing software
67
updates the latest updates and
and features and security
patches security policies
to protocols. reduce the
address Encouraging a risk of data
security proactive breaches,
and approach to protecting
stability software employees and
issues, updates, the
further particularly organization
enhancing for data from
data protection, potential
protectio and security
n and it implementing incidents.
includes stringent data Additionally,
built-in security knowing that
recovery policies software is
options, within Excel. up to date
such as The and security
auto- multifaceted policies are
saving strategy also in place
and involves fosters
version fostering a employee
history, culture of confidence
that can awareness and when using
help conducting Excel for
restore periodic accounting
data in security tasks.
the event audits to Employees can
of address constantly
unexpecte potential update their
d vulnerabilitie skills and
shutdowns s, aiming to knowledge,
or optimize staying up to
errors. Excel's date on the
capabilities latest
for accounting security
tasks with features and
robust best
security practices.
measures.
68
The Consider Owner/ Regularly
company converting to Accounting Employees who
applies Excel Staff/Users have been
Microsoft spreadsheet trained in
Excel as because it has Excel's
an an Automatic recovery
accountin Background features gain
g tool Saving feature confidence in
because in which the using the
it spreadsheet application
includes application because they
built-in continuously know their
recovery saves the data is
options, changes you secure and
such as make to the recoverable.
auto- file in the They also
saving background adapt to
and without your changes in
version intervention. Excel's
history, Even if the interface,
that can users forget ensuring that
help to save they are
restore manually, this aware of and
data in process can use new
the event ensures that functionaliti
of the most es.
unexpecte recent changes Additionally,
d. are captured. instead of
shutdowns manually
or creating
errors. multiple
copies or
backups,
employees can
save time by
utilizing
auto-saving.
Employees can
work more
efficiently,
reduce risks,
69
and ensure
the integrity
of their
valuable
data.
USABILITY

Activities
The Consider using Owner / Regularly By

company dedicated Accounting transforming
applies accounting Staff Microsoft
Microsoft software that Excel into a
Excel as is designed to valuable
an comply with accounting
accountin accounting tool that may
g tool standards. not require
because Accounting strict
it can be software is adherence to
a specifically standard
valuable developed to accounting
accountin meet the principles,
g tool requirements Business
for and standards enterprise
businesse set by could
s that do accounting specialize
not need bodies like templates and
to comply QuickBooks, focused
with Xero, or Sage. training that
standard But, if you can result in
accountin continue to more accurate
g use Excel, and efficient
principle conduct manual data entry in
s. compliance their
checks. Review organization.
your Encouraging
spreadsheets customization
against the enhances
relevant adaptability,
70
accounting while regular
standards to audits ensure
ensure that compliance
your financial with internal
statements and standards and
reports adhere promoting
to the collaboration
required fosters the
guidelines. sharing of
This may innovative
involve practices,
seeking and exploring
guidance from integration
accounting possibilities
professionals with other
because having tools
an external streamlines
accounting processes.
professional Ultimately,
or auditor to can lead to
review your improved
financial efficiency,
reports and better
Excel decision-
spreadsheets making, and
ensure enhanced
compliance. overall
They can performance
provide for their
valuable businesses
insights and operating
identify areas outside
where standard
adjustments or accounting
improvements principles
may be needed. and standards
within their
organization.
PRACTICALITY
71
Activities
The Enterprises Accounting Regularly The

company will use the Staff/Users accounting
applies trial period /Owner staff/users
Microsoft to evaluate by
Excel as whether Excel approaching
an within the the trial can
accountin Microsoft 365 get a
g tool suite meets comprehensive
because the specific understanding
Microsoft requirements of Excel's
offers a of the features and
free company. Use determining
trial of the trial to if Microsoft
Excel as enhance areas Excel within
part of you want to the Microsoft
the improve, such 365 suite
Microsoft as formulas, aligns with
365 data analysis, your workflow
suite, or chart and business
allowing creation. needs before
you to Consider deciding on a
use it factors like full license
for a ease of use, purchase.
limited features, and Having full
time integration license
without capabilities. provides
purchasin The unrestricted
g a full performance of access to all
license. Microsoft features and
Excel meets functionaliti
your es of
satisfaction Microsoft
to try to Excel without
avail a full any time
license. limitations
and allows
the
application
72
beyond trial
periods.
73
Chapter IV
Summary, Conclusions, and Recommendations
I. Summary of Findings
This study was conducted to determine how enterprises applied
Microsoft Excel as accounting tool of Small and Medium-sized
Enterprises in selected barangays of Cabanatuan City, Nueva Ecija.
A quantitative type of research was utilized, and the survey
questionnaire from the adapted study was modified in accordance
with the objectives of this study in gathering the data from
seventy-eight (78) respondents.
1. Profile of the Respondents
1.1 Age
In terms of age, respondents were mostly 26-30 years old,
with a frequency of 31 or 40% of the total number of respondents.
There were 24 respondents or 31%, who belong to 21-25 years old.
15 respondents, or 19%, range from 31-35 years old. The 6%, or 5
respondents, belong to 36-40 years old. 2 respondents or 3%, range
from 41-45 years old and one respondent or 1%, belong to 46-50
years old.
74
1.2 Sex
In terms of sex, 39 or 50% of the respondents were males,
while the remaining 39 respondents or 50% of the total number of
respondents were females.
1.3 Length of Service
In terms of length of service, 22 respondents or 28% have
been working for 3 to 4 years. Meanwhile, 17 respondents or 22%
have been working less than 6 months. 16 respondents or 21% belong
in the bracket of 1 to 2 years. 11 or 14% have been working for 6
months to 1 year. 8 respondents or 10% belong in the bracket of
5 to 6 years. 3 or 4% have been working for 7 months to 8 years.
Lastly, 1 respondent or 1% have been working for 7 to 8 years.
1.4 Degree
In terms of degree, most of the respondents graduated from
BSBA course with a frequency of 31 or 40%. 10 respondents or 13%
graduated from BSMA course. 8 or 10% graduated from BSA course.
Meanwhile, 7 respondents or 9% graduated from BSAIS course and
other courses specified by the respondents are BSIT, BSHRM, BSTM,
75
BSCE, BIT, ABE, BSSE, Automotive, ICT-Senior High School, and High
School Graduate with frequency of 22 or 28%.
Sized Enterprises
In terms of Management of Data, it has a general weighted
mean 3.40, which, when verbally described as “Highly Applied”.
management of data on enterprise in Selected Barangays of
Cabanatuan City, Nueva Ecija in a highly applied manner.
In terms of Flexibility, it has a general weighted mean 3.34,
which is interpreted as “Highly Applied”. Therefore, applying
Microsoft Excel as Accounting Tool serves its attribute of
protecting the necessary data of each enterprise in Selected
Barangays of Cabanatuan City, Nueva Ecija in a highly applied
manner.
In terms of Information Security, applying Microsoft Excel as
Accounting Tool serves its attribute of protecting the necessary
data of each enterprise in Selected Barangays of Cabanatuan City,
Nueva Ecija in a highly applied manner with a general weighted
mean of 3.32 which is interpreted as “Highly Applied”.

76
In terms of Usability, it has a general weighted mean of 3.31
which is interpreted as “Highly Applied”. Therefore, applying
Microsoft Excel as Accounting Tool serves its usability on
enterprise in Selected Barangays of Cabanatuan City, Nueva Ecija
in a highly applied manner.
In terms of Practicality, it has a general weighted mean of
3.32, which, when verbally described as “Highly Applied”.
practicality on enterprise in Selected Barangays of Cabanatuan
City, Nueva Ecija in a highly applied manner.
3. Accounting Functions performed in Microsoft Excel as Accounting
Tool of Small and Medium-sized enterprises.
In terms of accounting function, 40 respondents or 51% use
Microsoft Excel as data entry and storage. The 39 respondents or
50% use Microsoft Excel as data analysis and tracking. Meanwhile,
27 respondents or 35% use Microsoft Excel as accounting and
budgeting. Also, 27 respondents or 35% use Microsoft Excel as
expense tracking. 17 respondents or 22% use Microsoft Excel as
Performing Calculation. Lastly 2 or 4% used Microsoft Excel on
other functionality which is employee listing.
77
3. Relationship between the Age, Length of Service, and the
Application of Microsoft Excel as Accounting Tool of Small and
Medium – Sized Enterprises.
It may be reflected from the table that the profile of the
respondents in terms of age and length of service do not yield any
significant relationship to the respondents’ Management of data,
Flexibility, Information Security, Usability, Practicality under
application of Microsoft Excel as an Accounting Tool of Small and
Medium – Sized Enterprises.
4. Difference among the Sex, Degree, and the Application of
Microsoft Excel as Accounting Tool of Small and Medium – Sized
Enterprises.
The finding revealed that there are significant differences
between sex and the degree of the respondents with the application
of Microsoft Excel as Accounting Tool of Small and Medium – Sized
Enterprises.
5. Action Plan proposed to improve the Application of Microsoft
Excel as Accounting Tool of Small and Medium-Sized Enterprises.
78
The action plan that is hereby proposed focuses on the
strategies on how to sustain the application of Microsoft Excel as
an Accounting Tool of Small and Medium-Sized Enterprises. The said
action plan sought to help the organization identify areas for
sustaining and take targeted actions. This comes in 5 phases
namely, areas of concern, plan/strategies/activities, person
involved, time frame, and expected outcome.
II. Conclusions
1. Small and Medium-Sized enterprises' accounting employees' ages,
ranges from 26 to 30 years old which is equally distributed to
male and female and have been in the service for 3 to 4 years.
Also, most of them took Bachelor of Science in Business
Administration and they commonly utilized Microsoft Excel for Data
Entry and Storage.
Sized Enterprises' parameters such as Management of Data,
Flexibility, Information Security, Usability and Practicality of
Microsoft Excel were highly applied. Therefore, enterprises were
able to utilized Microsoft Excel's attributes to further maximize
the wide range of mathematical and financial functions of it for
79
accounting purposes to makes it easy to create formulas to perform
calculations, such as balance sheets, income statements, financial
ratios, and other accounting data. They highly applied it with a
reason that it is widely available and can be installed on both
Windows and Mac operating systems. It is also available as a web
application through Microsoft, making it accessible from different
devices and platforms along with custom templates that suit
specific accounting needs, designing worksheets, income
statements, balance sheets, and other financial documents tailored
to the organization's requirements. The password-protecting files
which prevents unauthorized access made it also these enterprises
to highly applied Microsoft Excel. Moreover, Microsoft Excel as an
accounting tool is much faster than manual calculations while also
being significantly more accurate. That is why enterprises highly
applied the usability of it. And, lastly, Microsoft Excel offers
free and open-source spreadsheet programs available, such as
LibreOffice Calc and Google Sheets, which can be used as
alternatives for basic accounting and financial tasks without the
need to purchase a subscription. Therefore, Microsoft Excel is
inevitably highly applied in all aspects of each variable.
80
3. Based on the findings of the study out of all the presented
accounting functions, data entry and storage are the most commonly
performed accounting function in Microsoft Excel as Accounting
Tool of Small and Medium-sized Enterprises. Additionally,
respondents specified employee listing as other accounting
function.
4. The profile variables such as age and length of service were
not correlated with the Application of Microsoft Excel as
accounting tool of Small and Medium-Sized Enterprises. Thus, the
null hypothesis "There is no significant relationship among the
age, length of service, and the application of Microsoft Excel as
an Accounting Tool of Small and Medium-Sized Enterprises" is
accepted.
5. The profile variables such as sex and degree had significant
differences with the Application of Microsoft Excel as Accounting
Tool of Small and Medium-Sized Enterprises. Thus, the null
hypothesis "There is no significant difference among the sex,
degree, and the application of Microsoft Excel as an Accounting
Tool of Small and Medium-Sized Enterprises' is rejected.
81
6. The action plan was crafted based on the lowest weighted mean
to further recommend and suggest to those enterprises on how they
can apply Microsoft Excel as Accounting Tool in the most effective
and improved ways possible.
III. Recommendations
To Small and Medium-Sized Enterprise. To enhance the use of
Microsoft Excel as an accounting tool, the company can implement
training programs to educate employees on advanced Excel
functionalities. Additionally, creating standardized templates for
financial reporting and encouraging the use of pivot tables can
streamline data organization. Regularly updating Excel skills
through workshops and tutorials ensures employees stay proficient
in leveraging sorting and filtering features for efficient data
analysis and reporting.
Secondly, Enterprises should further seek for an IT expert
in order to understand how compatibility of Microsoft Excel with
other software and tools be possible especially when importing and
exporting data with various accounting systems and software. They
must be confused when dealing with its compatibility but it is
82
best to ask for professionals and let them guide you on how it
will work, correctly.
Third, to enhance Microsoft Excel as an accounting tool,
the organization can establish a comprehensive training program,
emphasizing the latest features and security protocols.
Encouraging a proactive approach to software updates, particularly
for data protection, and implementing stringent data security
policies within Excel. The multifaceted strategy also involves
fostering a culture of awareness and conducting periodic security
audits to address potential vulnerabilities, aiming to optimize
Excel's capabilities for accounting tasks with robust security
measures.
Fourth, the IT department can enhance employees' use of
Microsoft Excel as an accounting tool by implementing focused
strategies. This includes specialized training on Excel's recovery
features, emphasizing auto-saving and version history for data
restoration. Establishing regular backup protocols complements
these features, bolstering overall data resilience. Documentation
and resources outlining best practices for utilizing recovery
features help mitigate the impact of unexpected disruptions. A
proactive approach to system updates ensures that both Excel and

83
related software benefit from the latest recovery enhancements.
The IT department can provide technical support channels for
addressing any data recovery issues within Excel. These integrated
strategies empower employees to effectively utilize Excel's built-
in recovery options, minimizing disruptions in accounting tasks.
Lastly, enterprises will use the trial period to evaluate
whether Excel within the Microsoft 365 suite meets the specific
requirements of the company. Use the trial to enhance areas you
want to improve, such as formulas, data analysis, or chart
creation. Consider factors like ease of use, features, and
integration capabilities. The performance of Microsoft Excel meets
your satisfaction to try to avail a full license version of it.
To the students. Researchers recommend that students under
CMA and other technology related courses should focus in improving
their expertise in utilizing Microsoft Excel since in their chosen
career, this is a fundamental skill they should acquire.
To the PHINMA Araullo University. Researchers recommend
that the school should further develop the program of the above
stated students in acquiring skills especially in harnessing full
knowledge and skills in Microsoft Excel.
84
To the Community of Cabanatuan City. Researchers recommend
that future entrepreneurs should consider the profile of their
employees and assess rightfully who can contribute to the success
of their organization, especially that technology literate is a
must.
To the Researchers. It is highly recommended that they
should optimize the knowledge that they gained from their conducted
study since it can be a valuable one especially in their chosen
career.
To the Future Researchers. Researchers recommend that
future researchers can focus on other attributes that Microsoft
Excel possessed to further assess how it is utilized or applied.
85

5 6264866871082748465

Uploaded by

Copyright:

Available Formats

5 6264866871082748465

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

5 6264866871082748465

Uploaded by

Copyright:

Available Formats

CHAPTER 1

PROBLEMS AND REVIEW OF RELATED LITERATURE

a review of related literature, a theoretical framework, a

conceptual framework, a statement of the problem, the hypothesis

of the study, significance, scope and delimitation, and an

accompanying definition of terminologies.

In the vast modern age of technology, the world has

increasingly become associated with advancement and innovation,

which has created strong competition among organizations. Along

with that, application software was invented to support various

burdens in the work field, which plays a significant role in

achieving the organization's goals and objectives. Hence, an

wanted to utilize to cope with the challenges and be able to survive

in the ever-changing competitive business world.

In today's rapidly evolving business landscape, technological

advancements have become a driving force behind business’

efficiency and productivity. Among the myriad of tools available,

used extensively in enterprises worldwide. Excel's ability to

handle complex calculations, organize data, and create insightful

visualizations has made it an indispensable tool for businesses

across various industries.

In fact, based on Coursera (2023), as of April 2023, over 1

million companies worldwide use Microsoft Excel.

Moreover, according to Gillis (2023), Microsoft Excel is a

and quickly gained popularity due to its user-friendly interface

and diverse functionalities. Over the years, Microsoft Excel has

evolved into a powerful analytical tool that enables enterprises

to analyze vast amounts of data, create financial models, track

performance metrics, and generate reports. Its widespread adoption

is driven by its accessibility, flexibility, and affordability,

making it accessible to businesses of all sizes.

However, according to Dang et al., (2020), organizing

accounting work in the context of computerization is one of the

most important jobs for enterprises in general and Small to medium

Enterprises (SMEs) in particular. Due to limited financial and

human resources, SMEs still select an appropriate support tool that

resources, to achieve productivity and efficiency. The application

of Microsoft Excel in SMEs has benefitted tremendously the quality

of accounting information in businesses. It helps businesses

proactively provide information quickly and effectively, to help

them compete better as to information. It is necessary to determine

how Microsoft Excel software works for SMEs today.

Moreover, according to Rosenberg (2022), Microsoft Excel is a

powerful tool that provides numerous features and functions to

streamline business processes. By studying its application,

enterprises can identify ways to optimize Excel’s usage, automate

tasks, and improve overall efficiency. This can result in time

savings, reduced errors, and increased productivity.

With this study, understanding the application of Microsoft

Excel as accounting tool can further assist enterprises to leverage

Excel's capabilities to make informed decisions. It facilitates

collaboration and communication within an organization particularly

important in teams that heavily rely on Excel for data analysis,

financial modeling, and other activities.

By understanding the application of Microsoft Excel's

features and functionalities, businesses can harness its full

researchers came up with this study to analyze the application of

Microsoft Excel of Small and Medium-sized enterprises based on its

attributes as accounting tool. Discovering the strengths and