Financial Management: The Implementation in MSMEs

Micro, Small, and Medium Enterprises (MSMEs) have enormous potential to support the economy in Indonesia. However, the high potential of MSMEs has yet to be developed optimally. One of the problems experienced by MSMEs is financial management. This research aims to determine the implementation of MSME financial management in Malang City. This research is descriptive qualitative research. A descriptive approach was used in this research to provide an overview of the implementation of financial management in MSMEs in Malang City. A total of 50 MSME actors were interviewed and directly observed. Financial management is identified with four indicators: budget use, financial recording, financial reporting, and financial control. The research results show that the implementation of financial management still needs to improve. The majority of MSMEs do not use a budget and do not have long-term planning for their business. Financial recording indicators also show that most MSMEs do not separate business and personal finances and do not carry out accounting records. The majority of MSMEs also do not make financial reports and do not exercise good financial control