Mentoring the Preparation of Financial Records for Micro Enterprises in Senenan and Mangunan Villages, Tahunan Sub-District

Abstract

Objective: This community service activity aims to improve micro business actors' basic financial literacy and daily financial recording skills, encourage better business financial management, and improve their readiness to access financing from formal financial institutions. Design & Methods: The approach used was participatory training methods and direct mentoring for six face-to-face meetings. The materials focused on understanding basic financial concepts such as cash flow, profit and loss calculation, and recording daily expenses and income. Participants were given manual worksheets and examples of microcredit proposal formats and guided on how to apply them in their daily business activities. Result: The results showed a significant improvement in participants' understanding of basic financial concepts. Participants began to record daily transactions consistently and showed positive behavioural changes, such as separating personal and business finances, determining selling prices based on margins, and utilizing financial data for purchase planning. Some participants stated they are better prepared to apply for loans because they have simple financial statements that can be presented to cooperatives or banks. These findings support the literature that financial literacy and good record-keeping improve microenterprise sustainability and access to finance.