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Improving the Digital-Based Financial Management Capacity of MSMEs to Enhance Community Economic Competitiveness Luther Hasan Lase1; Ristanto; Bambang Mardi Sentosa
Inovasi Sosial : Jurnal Pengabdian Kepada Masyarakat Vol. 3 No. 3 (2025): In Press
Publisher : LPPM Akademi Teknik Adikarya

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Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a strategic role in boosting economic growth, but they still face various challenges in financial management, particularly related to transaction recording, financial planning, and the use of digital technology. This community service program aims to improve the digital-based financial management capacity of MSMEs to strengthen their economic competitiveness. The program implementation method includes identifying partner needs, simple financial management training, mentoring in the use of digital financial recording applications, and evaluating the implementation of business financial management systems. Participants were MSMEs in the target area who have limitations in implementing technology-based financial management. The results of the program showed an increase in participants' understanding and skills in systematic financial recording, separating business and personal finances, and preparing simple financial reports using digital applications. In addition, business owners began to be able to utilize financial data for business planning and economic decision-making. This program also resulted in increased business management efficiency and opened up market expansion opportunities through integration with digital platforms. Therefore, strengthening digital-based financial management capacity is a crucial strategy in supporting business sustainability and increasing community economic competitiveness. This program is recommended to be continued through ongoing mentoring to ensure the consistent implementation of digital financial management in MSMEs
Enhancing Financial Management Capabilities through Management and Accounting Training Luther Hasan Lase; Ristanto
Inovasi Sosial : Jurnal Pengabdian Kepada Masyarakat Vol. 4 No. 1 (2026): In Progress
Publisher : LPPM Akademi Teknik Adikarya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.61991/inovasisosial.v4i1.257

Abstract

Financial management capability is a fundamental determinant of organizational sustainability and business performance, particularly for micro, small, and medium-sized enterprises (MSMEs) and community-based business actors. Despite its importance, many business owners continue to experience difficulties in budgeting, bookkeeping, financial reporting, cash flow management, and financial decision-making due to limited managerial and accounting competencies. Management and accounting training has therefore emerged as an effective educational intervention to improve financial literacy, strengthen managerial capabilities, and promote more accountable and transparent financial practices.This study aims to analyze the effectiveness of management and accounting training in enhancing participants' financial management capabilities, with particular emphasis on improving financial knowledge, bookkeeping skills, budgeting practices, financial reporting, and financial decision-making. This study employed a qualitative approach using a descriptive case study design. Data were collected through observations, semi-structured interviews, documentation, and participant reflections involving individuals who participated in management and accounting training programs. The data were analyzed using the interactive model of Miles and Huberman, consisting of data reduction, data display, and conclusion drawing, while data credibility was ensured through source triangulation and method triangulation. The findings indicate that management and accounting training significantly improved participants' understanding of financial management principles and strengthened their practical competencies in recording transactions, preparing financial statements, budgeting, and managing business cash flows. Participants also demonstrated greater awareness of the importance of separating personal and business finances, utilizing financial information for decision-making, and implementing systematic financial control. Furthermore, the training enhanced participants' confidence in managing business finances, increased accountability, and encouraged the adoption of more structured and sustainable financial management practices