IMPLEMENTATION OF BASIC ACCOUNTING AND CASH FLOW MANAGEMENT FOR MICRO-SCALE COFFEE PRODUCERS IN THE LABUAN BAJO REGION

Abstract

This community engagement initiative aims to enhance the financial literacy of coffee Small and Medium Enterprises (SMEs) in Indonesia, focusing specifically on their ability to conduct investment feasibility analysis for critical capital expenditures. The program addresses the common challenge where coffee SMEs, vital to the national economy, often make significant investments in equipment or materials without rigorous financial evaluation, leading to high risk and suboptimal profitability. The target audience was 30 coffee SME owners in the Yogyakarta region. The implementation method involved a participatory workshop model, including interactive modules on calculating Payback Period (PP), Net Present Value (NPV), and Internal Rate of Return (IRR), supplemented by one-on-one mentoring. The case studies focused on two relevant investments: purchasing a coffee roasting machine and transitioning to sustainable packaging. The results, measured via a pre-test/post-test design, show a significant improvement in participants' financial competency. The average pre-test score of 32% (indicating basic awareness) rose to 78% in the post-test (indicating practical application capability). This program provides SMEs with tangible tools to make data-driven investment decisions, thereby strengthening their financial resilience and competitive advantage.