Dosen Mengabdi IPB University Provide Training on Business Bookkeeping and Proper Profit Calculation to UMKM (MSMEs)

Micro, small and medium enterprises (MSMEs) are one of the drivers of a very resilient people's economy and make a significant contribution in spurring the economy in Indonesia. This is because most small and medium-sized entrepreneurs come from the family or home industry as well as the absorption of MSMEs to a very large workforce and close to the small people.

Many MSME businesses fail to maintain their businesses, simply because they are wrong in managing their business finances. In managing the business, finance is one of the most important things to note. Therefore it is important for every business person to have a basic knowledge of good and correct financial management. In order to manage properly, the requirement is that every MSME must have a good and correct financial record and bookkeeping even if it is done in a simple way.

"Every company aims to make a profit, both large and small companies. Therefore, the owner of the company must evaluate his business to see if his business gets the expected profit or suffers losses. If the company has not made the expected profit or even suffered a loss then it must take immediate corrective action in order for the company to continue to run and grow.

The calculation of the right profit can only be obtained by doing financial recording or continuous bookkeeping so that the data to calculate the profit is complete and accurate," said Dr. Ir Anita Ristianingrum, MSi, lecturer of IPB University of agribusiness management study program, Vocational School to MSME actors in Neglasari Village, Darmaga Sub-District (11/9) in the activities of Lecturers Serving, Research and Community Service Institute (LPPM) IPB University.

In this activity, Dr Anita trained 20 MSME actors on bookkeeping functions for business development and precise profit calculation. This is done so that MSME actors understand that financial recording or bookkeeping is very important in business activities and can calculate profits precisely. According to her, recording and bookkeeping is important to do because as a tool to know the conditions of the business carried out, and also as a tool to make strategic decisions. One of the causes of MSME failure is wrong in taking steps, because it does not have a proper analysis reference.

"The downside of individual small businesses is that they do not record financial or bookkeeping and do not apply the principle of entities that do not separate between business finance and household finances. In addition, it does not apply the principle of opportunity cost to the use of resources and assets owned by private property and does not perform the calculation of equipment depreciation. Usually only the costs are calculated in cash so the profit calculation is less precise. As a result, the evaluation of his business became inappropriate, not even knowing if his business actually suffered losses because many of the costs have not been calculated," She added.

In any business activity, She added, financial recording or bookkeeping is necessary in order for all transactions to be recorded and stored properly. As well as having to apply the principle of the entity, take into account all costs used for the business including non-cash and apply the principle of opportunity cost to all resources and privately owned assets used for the evaluation of the next period. The function of financial recording or bookkeeping is to assess business success, cost efficiency, and evaluation and follow-up so that the goal is achieved which is to make a profit.

"In small companies, it is not necessary to record finances using an accounting system, but small companies need to do financial recording despite using a simple format and calculating profits appropriately or even being able to set profit targets so that their business can grow," he concluded.

During the training activity, most participants realized that the financial record has not been recorded, and even if recording but calculating the profit is not yet appropriate. The participants can understand the importance of bookkeeping as well as how to book to calculate the profit precisely so that expect the activity to be sustainable so that it can continue to be carried out coaching to be able to apply the materials that have been given. (IAAS/NAS)




Published Date : 13-Sep-2020

Resource Person : Dr Ir Anita Ristianingrum, MSi

Keyword : Financial Recording, MSMEs, Lecturers Serving, Vocational Schools, IPB University, IPB lecturers