Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram City
This study compares the efficiency of the cash flow accounting method and the accrual method in recording the finances of Micro, Small, and Medium Enterprises (MSMEs) in Mataram City. The results show that the majority of MSMEs still use the cash flow method because it is simpler, easier to impleme...
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| Format: | Article |
| Language: | English |
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Universitas KH Abdul Chalim, Prodi Ekonomi Syariah
2025-07-01
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| Series: | Indonesian Interdisciplinary Journal of Sharia Economics |
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| Online Access: | https://e-journal.uac.ac.id/index.php/iijse/article/view/7258 |
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| author | Nabila Fadilah Herlina Pusparini |
| author_facet | Nabila Fadilah Herlina Pusparini |
| author_sort | Nabila Fadilah |
| collection | DOAJ |
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This study compares the efficiency of the cash flow accounting method and the accrual method in recording the finances of Micro, Small, and Medium Enterprises (MSMEs) in Mataram City. The results show that the majority of MSMEs still use the cash flow method because it is simpler, easier to implement, and does not require complex accounting expertise. Although operationally efficient, the cash flow method has limitations in presenting comprehensive financial information. In contrast, the accrual method is able to present more complete and accurate financial information because it records transactions based on rights and obligations, not just cash flow. The accrual method is considered more appropriate for MSMEs that want to develop professionally and collaborate with formal financial institutions. Therefore, the choice of financial recording method should be adjusted to the business scale, information needs, and long-term goals of each MSME.
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| format | Article |
| id | doaj-art-c9b50d7147984df18944d576d03506ee |
| institution | Kabale University |
| issn | 2621-606X |
| language | English |
| publishDate | 2025-07-01 |
| publisher | Universitas KH Abdul Chalim, Prodi Ekonomi Syariah |
| record_format | Article |
| series | Indonesian Interdisciplinary Journal of Sharia Economics |
| spelling | doaj-art-c9b50d7147984df18944d576d03506ee2025-08-20T03:27:52ZengUniversitas KH Abdul Chalim, Prodi Ekonomi SyariahIndonesian Interdisciplinary Journal of Sharia Economics2621-606X2025-07-018310.31538/iijse.v8i3.7258Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram CityNabila Fadilah0Herlina Pusparini1Universitas Mataram, Mataram, IndonesiaUniversitas Mataram, Mataram, Indonesia This study compares the efficiency of the cash flow accounting method and the accrual method in recording the finances of Micro, Small, and Medium Enterprises (MSMEs) in Mataram City. The results show that the majority of MSMEs still use the cash flow method because it is simpler, easier to implement, and does not require complex accounting expertise. Although operationally efficient, the cash flow method has limitations in presenting comprehensive financial information. In contrast, the accrual method is able to present more complete and accurate financial information because it records transactions based on rights and obligations, not just cash flow. The accrual method is considered more appropriate for MSMEs that want to develop professionally and collaborate with formal financial institutions. Therefore, the choice of financial recording method should be adjusted to the business scale, information needs, and long-term goals of each MSME. https://e-journal.uac.ac.id/index.php/iijse/article/view/7258Efficiency, Cash Flow Accounting Method, Accrual Method, Financial Recording, MSMEs in Mataram City |
| spellingShingle | Nabila Fadilah Herlina Pusparini Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram City Indonesian Interdisciplinary Journal of Sharia Economics Efficiency, Cash Flow Accounting Method, Accrual Method, Financial Recording, MSMEs in Mataram City |
| title | Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram City |
| title_full | Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram City |
| title_fullStr | Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram City |
| title_full_unstemmed | Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram City |
| title_short | Comparison of the Efficiency of Using the Cash Flow Accounting Method and the Accrual Method for Financial Recording of MSMEs in Mataram City |
| title_sort | comparison of the efficiency of using the cash flow accounting method and the accrual method for financial recording of msmes in mataram city |
| topic | Efficiency, Cash Flow Accounting Method, Accrual Method, Financial Recording, MSMEs in Mataram City |
| url | https://e-journal.uac.ac.id/index.php/iijse/article/view/7258 |
| work_keys_str_mv | AT nabilafadilah comparisonoftheefficiencyofusingthecashflowaccountingmethodandtheaccrualmethodforfinancialrecordingofmsmesinmataramcity AT herlinapusparini comparisonoftheefficiencyofusingthecashflowaccountingmethodandtheaccrualmethodforfinancialrecordingofmsmesinmataramcity |