Promoting Quality Bookkeeping in Self-Help Groups: The Mahakalasm Management Information System
This learning paper is one of the eleven learning products developed by the Practitioner Learning Program (PLP), a SEEP network initiative to explore key challenges faced by the microenterprise industry. It presents a Management Information System to help self-help groups (SHGs) to maintain their records in a compact, efficient and systematic manner that complies with general accounting practices. The paper describes the implementation and learnings from a pilot project on bookkeeping that was implemented for three months with 50 SHGs selected from four Mahakalasms (receptacle for community savings) promoted by Covenant Centre for Development (CCD).
Accurate bookkeeping is essential for the strength and long term stability of SHGs, providing data to resolve disputes and maintain accountability to all group members. Timely reporting can also demonstrate the strength of an SHG to outside observers and other stakeholders. Important aspects of an SHG that need to be documented include:
- Loan and asset quality;
- Efficiency;
- Sustainability.
The paper describes the SHG Book of Accounts (BoA). It also discusses the challenges encountered by CCD with the new bookkeeping system, as well as benefits experienced by CCD, SHGs and banks.
