Yusri Yusri, Muhammad Erwin Haikal

CASH MANAGEMENT LEVEL IN MAINTAINING INCOME EFFECTIVENESS THROUGH THE ACCOUNTING MONITORING SYSTEM IN ONE OF THE MSMEs IN BANJARMASIN

Introduction

Cash management level in maintaining income effectiveness through the accounting monitoring system in one of the msmes in banjarmasin. Improve income effectiveness for MSMEs in Banjarmasin through better cash management and accounting monitoring. This study reveals weaknesses in financial recording and the need for training in internal cash control systems.

Abstract

Banjarmasin, located in South Kalimantan, is home to numerous MSMEs with diverse business activities. To improve these businesses, we identified issues related to accounting among one of the MSMEs studied. These activities generally involve simple recording of income and expenses. Some even fail to record rental space as an expense, making the business appear to generate substantial profits because expenses are not properly recorded. Consequently, the records do not reflect the true financial condition of the business. The problem lies in the lack of direct training on business financial management. To address these issues, training for MSMEs in financial management is necessary for the continuation of this research. Petty cash control can conduct surprise calculations of funds made periodically to determine that the funds are accounted for satisfactorily. Petty cash receipts are canceled or destroyed after being submitted for replenishment, so they cannot be used to request a second replenishment. Based on the results of the study, it is known that the MSMEs are not yet aware that the existing system has weaknesses and a lack of understanding of the system environment in cash control itself, which causes inconsistencies. In this case, it is hoped that information regarding the role of internal cash control can be used as new insights and vice versa to support the smooth administration and accounting so that existing results can function and run as expected. Thus, revenue effectiveness can also be increased.

Review

This paper addresses a highly pertinent issue concerning the financial health and sustainability of Micro, Small, and Medium Enterprises (MSMEs), specifically focusing on cash management and its impact on income effectiveness through accounting monitoring systems in Banjarmasin. The abstract effectively highlights a critical problem prevalent in many MSMEs: the rudimentary or non-existent accounting practices that lead to a distorted view of financial performance. The identified issues, such as simple income/expense recording, failure to account for all expenses (e.g., rental space), and subsequent misperception of substantial profits, underscore a fundamental lack of financial literacy and robust control mechanisms. This foundational problem directly hinders the ability of MSMEs to accurately assess their true financial condition and, consequently, their income effectiveness. However, the abstract presents a somewhat ambiguous picture regarding the study's methodology and the depth of its analysis. While it mentions identifying issues and "results of the study," it does not explicitly detail the research design, data collection methods, or analytical framework used to arrive at these findings from "one of the MSMEs." The description veers between identifying a problem, suggesting a future intervention (training for financial management), and providing general advice on petty cash control. The core finding, that MSMEs are unaware of system weaknesses and lack understanding of the cash control environment, while valuable, appears to be observational rather than derived from a systematic analysis of "cash management level" or an "accounting monitoring system" as implied by the title. The link between the identified deficiencies and a quantifiable impact on "income effectiveness" also remains largely undemonstrated within the provided abstract. To enhance the academic rigor and impact of this work, future iterations or related research should clearly articulate the methodology employed. Defining what constitutes a "cash management level" and how it was measured in the single MSME would be crucial. Furthermore, the paper would benefit from a more explicit connection between specific cash management practices (or lack thereof), the functioning of the accounting monitoring system, and their *demonstrable* influence on income effectiveness. While the abstract effectively underscores the urgent need for financial management training among MSMEs, it could strengthen its contribution by moving beyond problem identification to a deeper analytical exploration of the mechanisms through which robust accounting and cash control directly enhance financial performance and sustainability for these vital economic entities.

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