AUAP E-NEWSLETTERS

To Create Occasions to Flourish, SMEs Should Possess Financial Statements

All businesspeople should be able to manage their financial business reports orderly and appropriately. If they could not manage their finance well, the businesses may get bankrupt. At training in Financial Management for Start-Ups on Saturday (8/12) at A.R. Fachruddin A of Universitas Muhammadiyah Yogyakarta (UMY), Manager of Bank Syariah BPD DIY Cabang Cik Ditiro Yogyakarta Drs. Supriyanto, M.M. stated that the financial reports are an essential aspect to monitor business growth.

However, added Supriyanto, merchants in traditional markets or shops or small and medium enterprises (SMEs) rarely write the reports. “The accountancy is vital to notice their business condition because, if they do not arrange their finance, it will be disorderly or they will get bankrupt,” he emphasized.

He informed that many bank managers found that they often found that businesspeople applied for business funds, but they did not give their financial statement. “Thus, banks get difficulty to analyze feasibility of the businesspeople since their data are incomplete whereas the banks can provide the funds.

“A well-managed financial statement notes not only income and expenses but also profits, losses, transports, assets, and salaries of employees. Indeed, the financial report should be in accordance with guidelines of Financial Accounting Standards (SAK) of the Indonesian Accounting Association (IAI),” maintained Supriyanto.

The financial statement can determine the future of a company because it will be valuable for the business owners, investors, employees, lenders, suppliers, customers, and government. Nevertheless, many traditional market sellers note their income and expenses disorderly. “They only write their report on a cigarette box,” he told.

Therefore, Supriyanto invited all businesspeople who run SMEs and commence start-ups to manage financial reports well. In fact, the people should notice the financial reports before they begin their business. “Think about the report and do it earlier so that we can recognize the future of our business.

Additionally, UMY students also attended the training, a program of Corporate Social Responsibility (CSR) of Bank Syariah BPD DIY and SEBI of UMY.