Ka Wai Ola - Office of Hawaiian Affairs, Volume 13, Number 2, 1 Pepeluali 1996 — Loan fund recipients get lessons in recordkeeping [ARTICLE+ILLUSTRATION]

Loan fund recipients get lessons in recordkeeping

by Pearl Leialoha Page Recipients of business loans through the Native Hawaiian Revolving Loan Fund (NHRLF) are now getting the opportunity for some very hands-on, tailored instruction in financial management. So far, the pilot program has assisted nine businesses in Hilo and another group of entrepreneurs on Maui have just completed their bookkeeping and accounting workshops. "We want to offer something unique for

beneficiaries whieh will help to support and enhanee their business activities," says Joan Bolte, OHA eeonomie development specialist who developed the training. "If they ean understand what the figures are telling them about their business, then they ean make informed deci-

sions that ean enhanee their business growth. We make it tangible and understandable so it -s not scary any more." Participants eome away from three sessions, whieh are scheduled about two weeks apart, with their own monthly financial statements, balance sheets and chart of accounts. In addition, those eompleting the course may receive monthly site visits from their island management and technical assistance provider for ongoing six-month follow-up period. "We start with the basics, and using workbook examples, help them see their business the way an accountant does," Bolte

explains. Participants then go back to their own businesses and plug in their figures into the exercises to reveal their own financial picture. The second workshop reviews their work and takes the effort to the next level where financial statements and general journal ledger activities are explored. Depreciation, trial balances, and posting to accounts are also examined. "Eaeh lesson builds on the one before to keep it simple and meaningful to the participants," Bolte explains.

Along the way, participants learn shortcuts to reconciling their checkbook, filing important documentation and learn the importance of an audit trail. By the third meeting, busi-ness-specific technieal accounting questions are addressed. The standardized bookkeeping and

accounting curriculum enables NHRLF recipients to understand basic accounting principles, improve financial management of their businesses, and more effec-

tively use available accounting or bookkeeping resources. They also improve their ability to meet the NHRLF loan requirement of providing monthly financial statements. OHA benefits by training its management and technical assistance

providers, who work with the recipients on eaeh island, to provide the same information to all. The curriculum also helps provide a record of finaneial information for clusters of industries eommonly initiated by NHRLF applicants and will hopefully improve the NHRLF business performanee. "It helped me a lot in going through my nanerwork," savs

Charles David, owner-operator of Kealoha's Trucking Services based in Honoka'a. "It helped me to do things on my own. Before I had my mother-in-law do my bookkeeping for me." David, who is in his second year of business,

also said he gained from meeting other business owners and sharing their same concerns. "I leamed a lot from listening to other people in the class. It was really worth my time. I've been able to keep track of my accounts better."

The training program will be going statewide this year with classes being held on eaeh island for NHRLF recipients. A schedule of workshops will be available from the management and technical assistance provider on eaeh island. Call Joan Bolte in Honolulu at 594-1848.

Hilo entrepreneurs attend a November loan fund workshop. Photo by Noel Fujimoto