Exploring the Understanding of Accounting and Financial Recording Practices of Micro-Entrepreneurs: A Case Study at Al Ihsaan Islamic Boarding School, Kuningan Regency

Abstract

This study was conducted to explore in depth the phenomenon of financial record-keeping practices in micro-business units within the pesantren environment, with a specific focus on the Handicraft Pipe Cleaner Mercy enterprise at Al Ihsaan Islamic Boarding School. This business unit, which produces various decorative items from pipe cleaner wire, is unique because it is managed collaboratively by the students (santri) as a medium for learning independence and entrepreneurship. The main objective of this research is to examine how the students’ accounting understanding is formed, to describe the reality of daily bookkeeping practices, and to identify the factors influencing the consistency of financial recording. Using a qualitative case study design, data were collected through participatory observation, in-depth interviews, and physical documentation. The results of the data analysis indicate that although economic activities are actively carried out, financial recording practices remain very rudimentary, inconsistent, and have not adhered to generally accepted accounting standards. Manual notebooks and mobile phone note features are the primary tools used, while the accounting competence of the actors develops autodidactically through direct experience (learning by doing) rather than formal education. These findings also confirm the existence of technical constraints in the form of limited time due to the dense pesantren curriculum schedule, which often causes financial administration to be neglected.