Accounting cycle in the economic activities of merchants in the municipal market of the Jipijapa canton

Abstract

DOI: https://doi.org/10.46296/rc.v9i17.0415

ABSTRACT

The accounting cycle is an essential tool for financial organization and economic control of commercial activities; however, its application in small businesses is often partial. The objective of this study was to analyze the impact of the accounting cycle on the economic activities of merchants in the Municipal Market of the Jipijapa canton. The research was conducted using a mixed approach, with a non-experimental, cross-sectional design, applying surveys to a probabilistic sample of 102 merchants and an interview with the market president. The results show that 88.9% of merchants record their economic transactions daily and 71.3% keep orderly records of income and expenses, which is explained by the operational need to control the daily cash flow in high-turnover commercial activities. However, only 27.6% always use supporting documents, while 47.9% do so occasionally, a situation attributed to a lack of technical knowledge and the perception that these documents are not essential for the day-to-day management of the business. It was concluded that, although merchants apply certain stages of the accounting cycle empirically, its comprehensive implementation has a favorable impact on economic performance and business sustainability, highlighting the need to strengthen accounting training and technical support in the commercial sector of the Jipijapa canton.

Keywords: Compliance, financial, market, growth, economy.