Indian Journal of Science and Technology, Vol 10(15), DOI: 10.17485/ijst/2017/v10i15/114297, April 2017 ISSN (Print) : 0974-6846 ISSN (Online) : 0974-5645 * Author for correspondence 1. Introduction Generally, it is believed that there is a strong relationship between micro enterprise, entrepreneurship concept, and poverty eradication. Recently, on 19 March 2013, in his opening speech during the Presentation of the National Transformation Programme Annual Report, the Prime Minister of Malaysia, Dato’ Seri Najib Tun Abdul Razak announced that the poverty rate in Malaysia had been signifcantly reduced to only 1.7% in 2012 from more than 60% during the early years of independence 21 . In response to the statement, an economic lecturer from Universiti Malaysia Sarawak (Unimas), Dr. Shazali Abu Mansor, believes that the success is highly related to the various entrepreneurship programmes that exist in the country. It is believed, through the skills and entrepreneurship trainings received under those programmes, participants may not have just increased their household income, they also contributed to the country’s economy 12 . 2. Background of the Study Regarding the issues of entrepreneurship and poverty alleviation, one cannot avoid discussing the issues of funding these micro enterprises. Micro enterprise in general is defned based on the number of full-time employees hired and the annual sales turnover by the enterprise. Based on the defnition provided by the Central Bank of Malaysia, an enterprise is considered a micro if it has less than 5 full-time employees or annual sales turnover of less than RM300,000 41 . Abstract Objective: This study aims to look at the financial management practices of two groups of micro entrepreneurs; sahabats of AIM and asnafs entrepreneurs from PPUAZ. Method Analysis: Adopting a mixed method approach, this study combines both quantitative (surveys) and qualitative (interviews) approaches. The surveys were conducted first to provide the overall and background information of the micro enterprises and their financial management practices. Adopting the purposive sampling method, samples were chosen based on the participants’ willingness to participate in the study. However, to ensure that the questions were answered by the targeted respondents, participants were asked on whether they were actively involved in running a business before answering the survey questions. Then, the findings from the questionnaire are verified in the interview sessions with the selected micro entrepreneurs. Findings: Data from the surveys and interviews were analyzed, and it was found that although asnafs are given “free money” from the PPUAZ, they generally have better financial management practices as compared to the sahabats. This study also found that that majority of the micro entrepreneurs score low on the financial management variables. This suggests that the micro entrepreneurs in general are not practicing a good record keeping. As financial management is vital for all types of entrepreneurship including micro, it is a concern as 21% of the micro entrepreneurs in this study are not recording anything from their business activities. Keywords: Financial Management, Microfinance, Micro Entrepreneurs AIM, PPUAZ Micro Financing: Accountability and Financial Management Practices of Micro Entrepreneurs Farah Aida Ahmad Nadzri 1,2* , Normah Omar 1,2 and Rashidah Abdul Rahman 1,2 1 Accounting Research Institute, Universiti Teknologi MARA, Shah Alam, Selangor, Malaysia; aidanadzri_84@yahoo.com, normah645@salam.uitm.edu.my, rabdulwahid@kau.edu.sa 2 Faculty of Economics and Administration, King Abdul Aziz University, Jeddah, Kingdom of Saudia Arabia;