Improving BUMDes Financial Governance via Accounting Capacity Building in the Shopping Unit of Labruk Kidul Village

Abstract

The management of the Village-Owned Enterprise (BUMDes) Shop Unit in Labruk Kidul Village, Lumajang Regency, currently applies a single-entry bookkeeping system, which limits the quality of financial information in supporting accountability, transparency, and managerial decision-making. In addition, the managers’ limited understanding of the accounting cycle has resulted in financial reports that are not systematically prepared in accordance with established accounting standards. This community service program is designed to enhance the managerial capacity of the shop unit in implementing proper accounting procedures and producing accountable financial statements through the adoption of a double-entry bookkeeping system. The program was conducted using a participatory approach involving training and mentoring activities. The training session was carried out on June 10, 2026, followed by mentoring focused on the accounting cycle stages, including transaction identification, journalizing, posting to the general ledger, preparing a trial balance, and compiling financial statements. The outcomes indicate an improvement in participants’ knowledge and skills in financial record-keeping. The managers demonstrated the ability to apply the double-entry system and prepare more structured financial reports. Overall, this activity contributed to strengthening financial accountability and improving the governance quality of BUMDes as a foundation for better decision-making and business sustainability.