Accounts Receivable Management Training to Improve Cash Flow of Micro, Small, and Medium Enterprises (MSMEs) in Kupang City

Abstract

Loan management is a critical aspect of maintaining cash flow stability and preventing business failure, particularly for Micro, Small, and Medium Enterprises (MSMEs). Based on observations and initial interviews with MSME operators in Kupang City, it was found that the majority of business owners do not yet have a robust accounting record-keeping and control system. This situation leads to late payments from customers, increased risk of bad debt, and disruptions to business cash flow. This Community Service (PKM) activity aims to enhance the knowledge and skills of MSME operators in effectively managing business credit. The methods employed include a preparation phase involving situation analysis and problem identification, an implementation phase consisting of accounting training and mentoring, and an evaluation phase using pre-tests and post-tests. The activity was attended by 25 SME operators. The results of the activity showed an increase in participants’ understanding of accounts receivable recording, accounts receivable aging analysis, and collection strategies. Additionally, participants were able to compile a list of customer receivables and implement regular monitoring of receivables. This program has a positive impact on improving financial management capabilities and supports the sustainability of SMEs.