How Important is Financial Recording for MSMEs?

Financial recording is one of the activities that must be carried out by business owners. Because every business must require financial transparency for many parties.

However, many businesses, especially MSMEs, are confused or underestimate this financial record. DailySocial.id had the opportunity to talk with Adi Harlim Director of Merchant Experience at BookStore.

When we talk about MSMEs or people who are just starting out to sell something, what is needed is capital. At first glance, it seems that there is no relationship between capital and financial records. However, this is actually very closely related, "A neat and orderly recording can be one of the credit assessment tools or bank credit scoring for micro and small-scale business actors," explained Adi.

It is not uncommon for MSMEs that do not have a good financial recording system to suffer losses, because business actors cannot manage finances properly. There are several cases of MSMEs getting a lot of sales, but not getting a profit. So this financial record is very crucial.

Purpose of Recording Transactions for MSMEs

Adi divides the three purposes of recording this transaction into two points:

• Recording financial transactions helps business actors to be more productive. Because business actors know the state of the business from existing financial data.
• Recording transactions can be used to see existing business opportunities, and plan expenditures to anticipate future business challenges.
• Increase the opportunity for business actors to obtain additional capital from formal financial institutions such as banks, fintech peer-to-peer lending, and other financing institutions.

Things to Prepare and Steps for Financial Recording

Things to Prepare

• Track expenses
• Planning business finances
• Monitoring stock and sales
• Separate personal expenses and business expenses
• Understand the monthly routine costs
• Annual fee
• Determining the right HPP

Steps

Adi recommends SMEs to use BukuWarung to record transactions. Because MSMEs will be facilitated with various features that are easy to use just a device. The use of this BukuWarung application will also make your transactions systematized with a simple and easy-to-understand interface.

Business owners are also required to record accounts payable that occur, BukuWarung can make this easier too because it provides a bill notification feature via SMS or WhatsApp sent to suppliers or other parties.

For business purposes, users to all banks and payments from customers will be more practical with digital payment features such as Pay and Bill and QRIS. This feature automatically records in the books to facilitate monitoring of financial flows, both in terms of cash and non-cash transactions. In digital payments, BukuWarung cooperates with partners registered and supervised by Bank Indonesia.

Time To Record Transactions

“The more diligent and disciplined MSME actors are in doing digital records, they will be more productive, because recording tasks have been digitally integrated real-time, data management is better, and work is completed faster, and can find out profit and loss at any time. Entrepreneurs who diligently record digitally can also avoid human errors such as forgetting or even taking notes wrongly,” explained Adi regarding the time of recording transactions.

Tips for Recording MSME Transactions to be Effective and Efficient

So that MSME transaction recording can be more effective and efficient if MSEs use a digital recording platform, because it is easier and more efficient. Integration with digital payments will also minimize the occurrence of incorrect transaction records for MSMEs, one of the platforms that can be used is BukuWarung. In addition, the mental discipline of the MSMEs is also

Do New MSMEs Need to Record Transactions?

"Of course. Based on a study from the US Bank in 2020, shows that 82% of small businesses fail in the first five years due to poor cash flow management. No matter how small the scale of a business that is run, at least provide a cash book. This cash book is used to record incoming and outgoing money accompanied by evidence,” explained Adi.