Enhancing MSME Business Sustainability through Simple Accounting Systems after Natural Disasters

Abstract

Micro, Small, and Medium Enterprises (MSMEs) play a crucial role in local economic recovery after natural disasters; however, their sustainability is often constrained by weak financial management and low accounting literacy. Post-disaster conditions further exacerbate these challenges due to asset losses, unstable cash flows, and limited access to formal financing. This community service program aims to enhance MSME business sustainability by strengthening financial literacy and implementing simple accounting systems in disaster-affected areas. The program was conducted through a structured approach consisting of preparation, training, continuous assistance, and evaluation stages. Training activities focused on basic accounting concepts, daily transaction recording, cash flow management, cost classification, and the separation of personal and business finances, while mentoring supported participants in applying simple bookkeeping practices adapted to their business conditions. The results indicate significant improvements in participants’ financial recording skills, financial management practices, and awareness of the importance of systematic bookkeeping. MSMEs that adopted simple accounting systems demonstrated better control over cash flows, clearer profit measurement, and stronger capacity to plan post-disaster recovery. Overall, the program contributes to improving MSME resilience and business sustainability by promoting practical, accessible, and context-appropriate financial management practices in disaster-prone communities.