1. University of the Philippines Diliman; castro234019@gmail.com
2. University of the Philippines Diliman; everlyn_everlyn@gmail.com

*             Correspondence: castro234019@gmail.com

Keywords: economic crisis; enterprise; financial and accounting management; innovation strategy

1. INTRODUCTION

Given the prevailing economic crisis in the Philippines, it is imperative to reassess the viability of traditional financial management models within organizations, as they may no longer be suitable for the current pace of economic growth. Numerous enterprises in the Philippines continue to employ conventional approaches in their accounting management practices. The utilization of outdated management systems and concepts significantly hampers the progress and advancement of these enterprises [1]. Hence, in light of the economic crisis in the Philippines, it is imperative to implement innovative measures aimed at enhancing the corporate accounting management system and bolstering the national economy of the country. Hence, within the expansive realm of their potential growth, all enterprises operating in the Philippines are currently confronted with unparalleled economic challenges [2]. The internal management mode of the enterprise is an important part of the work to better enhance the enterprise’s own development strength and stability during the internal management process. Doing a good job in internal management-related work is an inevitable choice for long-term and stable development. It plays a very important role in the coordination of various departments within the enterprise, as well as capital operation and management [3]. In today’s ever-changing economic situation of Philippines, only through the innovative and integrated development of enterprise management mode and the improvement of enterprise management level and operation level can we meet more challenges and create more benefits [4].

2. BUSINESS INNOVATION AND ECONOMIC CRISIS OF PHILIPPINES

The concept of business innovation is advanced globally that has transformed from a government-led economic system to a market-led one. In the traditional planned economic system, although enterprises bear less risk, their growth and development are very slow, and their autonomy is greatly restricted in the process of operation. In the deepening and development of the Philippines  market economic system, the traditional accounting system of enterprises has exposed many shortcomings, especially in the development of network information technology in our country, forcing the accounting management of enterprises to keep pace with the times and fully introduce computer technology into modern in the enterprise financial management work [5]. It has brought the development of business innovation work towards informatization and digitalization. Under the background of the new economy, the collection of financial information and the processing of financial data in corporate accounting management work requires the establishment of advanced accounting management concepts and the use of AI-based technology to effectively improve work efficiency and reduce management costs [6]. Traditional enterprise financial management has a certain degree of independence in the process of enterprise operation, and the object of management is relatively single [7]. Under the background of the economic crisis of Philippines, the financial and accounting management of enterprises gradually faces several issues. In order to constantly improve accounting, management staff should pay attention to the development trend of the entire financial industry and fully learn from the advantages of the market economic system of Philippines [8].

3- PROBLEMS IN EXISING FINANCIAL AND ACCOUNTING MANAGEMENT

3.1 Lack of Innovation Management System

If an enterprise wants to achieve long-term development, it should first of all continuously establish and improve various management systems of its own enterprise. Only by relying on the system can enterprises be able to carry out various effective management tasks [9]. The innovation of financial and accounting management is also carried out around various indicators of the enterprise, so various innovation systems should be continuously established and improved, especially in the current economic crisis of Philippines [10]. For example, the innovation evaluation mechanism of these systems is not perfect, resulting in the management innovation of corporate finance and accounting has remained on the surface, lacking an effective system to coordinate.

3.2 Management Methods are Retrograde

With the development of the enterprise economy of Philippines, the amount of enterprise management information is also increasing day by day, accounting business methods and processes are constantly changing, and there are more and more group companies [11]. With the development of network technology, remote office, and remote management, the difficulty of modern enterprise financial management has also increased, and the management system and requirements have become higher. The traditional management system has fallen behind and cannot meet the requirements of the current enterprise management [12]. Therefore, to solve these problems, enterprises must follow the nee innovative methods and strategies for financial management. In the current economic crisis in Philippines, all enterprises should take steps to the introduction of more advanced management methods, such as e-commerce, AI-based business technology, and so on [13].

3.3 The Cultivation of Dedicated Skills in Accounting Personnel

The working ability of corporate accounting staff is not limited to the backwardness of corporate accounting management concepts and management methods. The main reason is the professional knowledge and professionalism of accounting staff [14]. The entry threshold for the accounting profession is low. Many people do not have professional skills, excellent working ability, and love and responsibility for accounting work. Especially in the economic crisis of Philippines, many accounting staff is unable to fully grasp and apply new technologies in their work. In the past, the low working ability and insufficient level of financial and accounting staff led to low work efficiency and frequent mistakes in work, which caused losses to the enterprise and could not satisfy the cultivation and development of enterprise talents [15].

3.4 Single Management Method

In the background economic crisis of Philippines, the economic activities of enterprises tend to be diversified, and the amount of information in financial management is also increasing. In addition, the business model of enterprises has also undergone many changes, such as the emergence of group enterprises and the increase of remote offices [16]. However, in contrast to this, traditional corporate accounting management methods are single. In the traditional financial and accounting management of enterprises, the use of manpower for the transmission of accounting data and the handling of express delivery information by special personnel are the main management methods. This means of management solely relying on manpower is far from satisfying the rapid development of enterprises [17]. Therefore, if an enterprise wants to change this situation, it must add internet technology to its management methods to greatly improve management efficiency and enterprise operating efficiency [18].

4. BUSINESS INNOVATION MEASURES IN THE ECONOMIC CRISIS OF PHILIPPINES

4.1 Innovation Management Concepts

In traditional corporate accounting management, management personnel only manage the circulation of tangible assets and seldom manage intangible assets [19]. For example, intellectual property rights in the development of enterprises are often ignored in financial management. However, with the deepening of the new economic reform process, knowledge assets occupy an important position in the development of enterprises, and effective management of the knowledge economy can promote the rapid development of enterprises under the background of the new economy of Philippines [20]. Therefore, in the background of the economic crisis of Philippines, enterprises should innovate the concept of financial and accounting management, focus on managing the knowledge economy, and use advanced information management methods to protect the property rights of the enterprise’s knowledge economy. Through this kind of management concept, the competitiveness of enterprises can be effectively improved, and the development of enterprises in Philippines can develop stably in the fierce market economy, which has a positive impact on economic growth [21]. In the background of the economic crisis of Philippines, the innovation level of corporate finance and accounting management is not particularly perfect, so it will directly lead to the reduction of economic benefits of enterprises, and the innovation of corporate finance and accounting management must improve the management level [22]. On the one hand, enterprises must formulate and perfect innovative systems in order to reduce the risk of economic benefits enterprises. On the other hand, enterprises must establish and improve the evaluation mechanism of financial risk indicators in order to be able to timely discover the problems existing in the management of financial innovation and timely control the innovation of corporate financial management under the background of the new economy [23].

4.2 Determining the Objectives of Financial Management

In the economic crisis of Philippines, the financial and accounting management objectives need to be consistent with the strategic objectives of the enterprise. As a part of enterprise management, accounting management can only ensure that the financial and accounting management objectives are consistent with the strategic objectives of the enterprise to achieve the business management objectives of the enterprise [24]. In the process of business operation, obtaining economic benefits is the basis for the survival of the company, and improving economic benefits is the key. In addition, enterprises should also pay attention to the social goals of enterprises, that is, social responsibility [25]. In the economic crisis of Philippines, enterprises must do a good job of meeting their own goals to ensure the sustainable, high-quality, and healthy development of enterprises and avoid focusing on current interests instead of long-term interests in the process of production and operation [26]. Therefore, the financial and accounting management objectives of the enterprise must match the overall objectives of the enterprise.

4.3 AI-based Financial Management Systems

Face up to the important role of information management in the financial management of foreign-funded enterprises, fully understand the true meaning and specific operation mode of information management, adjust the financial management policies and regulations of enterprises in a timely manner according to the new requirements of information management, and strive to adapt to the new AI-based accounting management systems [27]. Make full use of the relevant financial and accounting management information systems while improving the efficiency of financial management, master the principles of financial data analysis and financial statement generation in the information system, and improve the efficiency of financial data analysis on the basis of promoting the efficiency of corporate financial management [28]. Effectiveness, providing guidance and a basis for the economic decision-making of enterprises [29].

4.4 Strengthening the Professionalism

In the actual operation process of the enterprise, a series of innovative measures must be taken in the construction of the talent team. In order to improve the employees’ professional skills and related qualities, training activities must be carried out within the enterprise on a regular basis, and after the training is completed, assessment and evaluation should be carried out to test the training results [30]. In terms of training content, it mainly focuses on the learning of accounting expertise, the learning of financial and legal knowledge, the ability to collect and analyze data, and the ability to predict economic prospects [31]. In the economic crisis of Philippines, all team members should give full play to creativity and passion, and enterprises must formulate sound reward and punishment measures; that is, the evaluation results and work efficiency of employees are directly linked to their salary and bonus [32].

5. CONCLUSIONS

The advancement of the global economy has led to a steady enhancement in individuals’ living conditions, accompanied by the emergence of numerous novel economic structures. The economic crisis in the Philippines has given rise to increasingly grave social and economic concerns. In order to attain sustainable development amidst the prevailing economic crisis in the Philippines, it is imperative for enterprises to effectively execute sound enterprise management practices. Financial and accounting management plays a crucial role in the field of information technology. Enhancing financial and accounting management practices, alongside the implementation of innovative management approaches, play a pivotal role in fostering the growth and advancement of enterprises in the Philippines. This study examines the novel approaches employed by corporate accounting management within the context of the economic crisis in the Philippines. The growth and progress of enterprises are accompanied by numerous prospects, yet they are concurrently confronted with significant obstacles in times of economic instability at the national level. In order to ensure survival and growth, an enterprise must possess a requisite level of economic prowess. Additionally, it is imperative for the enterprise to accord significant importance to financial management and adeptly mitigate operational management risks during the course of its managerial operations. By embracing the dynamic nature of development, enterprises can bolster their overall strength and market competitiveness by actively integrating new technologies, innovating financial and accounting management mechanisms, and consistently enhancing the quality of their workforce. These efforts serve as a robust assurance for achieving long-term stability and sustainable growth. The implementation of innovation strategies is imperative for the survival of the Philippine economy during times of economic crisis. These strategies not only contribute to the growth and development of enterprises, but also play a crucial role in fostering economic progress in the Philippines.

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