Assistance in Simple Financial Record-Keeping to Improve the Profitability of Microenterprises

Abstract

Micro-enterprises play an important role in supporting household economies; however, many micro-entrepreneurs still lack the habit of maintaining regular financial records. This condition was identified among micro-entrepreneurs in Tipulu and Sodohua Urban Villages, Kendari City. Some participants did not have cash books, continued to mix personal and business finances, and estimated profits based on rough calculations. This community service program aimed to improve the knowledge and skills of micro-entrepreneurs in conducting simple financial record-keeping, enabling them to manage business capital, control expenditures, and calculate net profits more accurately. The program was implemented through an initial survey, socialization, training, daily cash-recording practice, field assistance, monitoring, and evaluation. A total of 20 micro-entrepreneurs from Tipulu and Sodohua Urban Villages participated in the program. The results showed that the consistency of daily financial recording increased from 25% to 85%, the ability to calculate net profit increased from 30% to 80%, and the ability to separate personal and business finances increased from 40% to 80%. Participants’ net business profits also increased by approximately 10% to 25%, depending on the type of business and the consistency of financial record-keeping. These findings indicate that practice-based assistance can help micro-entrepreneurs develop consistent financial recording habits and improve overall business management.