Implementation of Calculating Cost of Goods Sold for MSMEs: Challenges and Solutions in Training Program
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Abstract
Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in the Indonesian economy. However, these enterprises frequently encounter challenges in financial management and accounting, which can impede their growth and development. Therefore, proficient business management and accounting skills are essential for MSMEs to effectively navigate economic conditions, optimize their business potential, and achieve strategic objectives. This need aligns with governmental efforts to enhance the scale of MSMEs in the global market. A notable challenge for MSMEs is the establishment of competitive and realistic selling prices. Accurate calculation of the Cost of Goods Sold (COGS) is crucial for MSMEs to determine actual production costs and improve profit margins. COGS is a fundamental component of financial statements, representing the direct costs associated with producing sold goods. Thus, understanding and calculating COGS is vital for MSMEs to maintain financial stability, enhance operational efficiency, and support business growth and sustainability. In response to these issues, the Accounting Lecturer at Respati Yogyakarta University conducted training on COGS calculation in accordance with the Statement of Financial Accounting Standards. The training was directed toward MSMEs supported by Rumah Kreatif Sleman (RKS), which includes a growing number of enterprises with significant local marketing potential, particularly in the culinary, crafts, and trade sectors. This financial training, with an emphasis on COGS calculation, aims to assist these enterprises in optimizing their marketing strategies and strengthening their competitive position in the global marketplace.