Financial Documentation Implementation in Batik Tulis MSMEs in Madura

Abstrak

Purpose: Micro, small, and medium enterprises (MSMEs) play a vital role in Indonesia’s economic development, both regionally and nationally. Among them, the hand-drawn batik industry in Tanjung Bumi, Madura has shown notable growth, yet faces challenges in financial documentation. This study aims to explore the implementation of financial recording practices in batik MSMEs and assess entrepreneurs’ understanding of accounting principles.

Method: A qualitative approach was employed, focusing on batik entrepreneurs who attempt to apply financial documentation in their businesses. Data were collected through field observations and interviews, allowing for an in-depth understanding of how financial records are maintained and the extent of accounting knowledge among business owners.

Findings: The findings indicate that financial recording remains limited and largely informal, relying on the owners’ basic understanding rather than standardized accounting practices. Records are often kept only to monitor income or fulfill obligations related to loans and credit, reflecting a reactive rather than systematic approach to financial management.

Implications: These results highlight the need for financial literacy programs and support mechanisms to strengthen MSME sustainability. By focusing on the cultural and economic significance of batik enterprises, the study contributes original insights into the intersection of traditional industries and modern accounting practices, offering a foundation for future research and policy development.

Originality: By exploring the practical realities of financial recording in heritage enterprises, the study highlights the gap between traditional business practices and modern accounting requirements. This perspective contributes to the literature on MSMEs by emphasizing the importance of financial documentation in creative industries and opens opportunities for future research on how cultural enterprises can integrate accounting systems to support long-term sustainability.