ASSISTANCE IN PREPARING OPERATIONAL BUDGETS AND CASH BUDGETS FOR MSMES

Abstract

This community service activity aims to improve the ability of Micro, Small, and Medium Enterprises (MSMEs) to prepare operational and cash budgets as tools for business financial planning and control. The main problems faced by partners are the lack of systematic financial planning, mixing personal and business finances, and the lack of cash flow projections. The method used is a participatory approach through training, mentoring, and direct practice of budgeting using a simple spreadsheet. The results of the activity showed a 78% increase in participant understanding based on pre- and post-tests, as well as the preparation of operational and cash budget documents for each partner. This activity has a positive impact on improving financial literacy and controlling business costs.

Keywords:MSMEs, Operational Budget, Cash Budget, Financial Planning, Community Service