Participation of Community Enterprise by Accounting

Abstract

Accounting involves collecting, recording, categorizing, and summarizing the financial data in a certain period of time. Accounting recording must complies with the standards of financial report of each business categories and must show the brief particulars in the financial statement 5 types of the summary report.

Community business or community enterprise holds vital role in strenthening the community and society to underpin strong foundation of the country. In addition, community enterprise promotes equal balance in the community in reducing the income gap among people of different socioeconomic groups and from different geographical areas. Also, the community enterprise encourages the advancement in technology and thus creates new sources of income, promote stable career choices, and uplift the quality of life for peaceful outcome. Accounting recording is, therefore, hold an important function for the community enterprise and must be fulfilled to undertand the overall picture of business performance in a certain period of time. The data obtained from accounting record provides the community enterprise operators the sound financial data for accurate decision making.

However, one of the perceived problem regarding accounting recording for the community enterprise is the lack of personnel who are knowledgeable in accountancy. In order to fill this gap, formulating practical accounting model suitable for the community enterprise with the participation from the community, as they could join in to think, act, and participate in the accountancy processes, would provide the community the accurate and practical data that can be used for planning and surviving the community enterprise in healthy and sustainable manner without relying only on the supervising government units like the current ongoing situation.