The cash flow activities and budgeting process of selected microbusinesses in Batangas City: Basis for budgeting strategies

Micro, small, and medium enterprises (MSMEs) are recognized as the Philippines' economic lifeblood, which must prioritize financial planning by considering a budget a tool for efficient financial planning and management. Thus, researchers were prompted to determine microbusinesses' cash flow activities and budgeting processes in Batangas City to develop budgeting strategies. The descriptive-quantitative research approach was used, and self-constructed questionnaires were responded to by 204 microbusinesses consisting of 14 bakeries and 190 sari-sari stores. Findings revealed that most microbusinesses in Batangas City have no employees and have been operating for about five years and below, with capitalization amounting to P500,000 and below. Microbusinesses often practiced cash flow activities such as operating and investing activities and practiced financing activities sometimes. The budgeting process of microbusinesses, including budget preparation, budget approval, and budget evaluation, were slightly practiced, and budget execution was the one that needed to be practiced. There is a significant relationship between microbusinesses' cash flow activities and budgeting. In operating activity, budget preparation, budget approval, budget execution, and budget evaluation are associated with this positively. When grouped according to profile, cash flow activities, such as operating and investing activities, had a significant difference, while financing activities had none. When grouped according to the number of employees in the budgeting process, there is no significant difference except in budget approval. When grouped according to years of operation, the budgeting process is the same except in budget evaluation. However, there is no significant difference in all phases of the budgeting process when grouped according to capitalization. The budgeting strategies aim to develop microbusinesses' cash flow activities and budgeting process. The researchers are motivated to develop budgeting strategies to help microbusiness owners be knowledgeable and educated on the budgeting process and cash flow activities