MSMEs Bookkeeping Capabilities for Accounting Information Transparency
Journal Title: International Journal of Current Science Research and Review - Year 2024, Vol 7, Issue 09
Abstract
MSMEs contribute 60% to gross domestic income, MSMEs also absorb labor and collect investment. However, of the total percentage of banking credit, MSMEs only get 20%. Banks experience difficulties in disbursing credit due to a lack of information on debtors who are worthy of financing. Difficulties are caused by the absence of financial reports as a parameter for credit worthiness. Through accounting transparency, it will be easy for MSMEs to know the policies that will be and have been taken. Transparency means the availability of sufficient, accurate and timely information about accounting policies and reporting. It is hoped that this research will be able to provide considerations for MSMEs to improve their accounting capabilities in accordance with SAK EMKM. The research was conducted in Denpasar, involving 100 questionnaire respondents and 10 informants in FGD. The data analysis technique used in this research is interpretive descriptive qualitative analysis technique. As a result, MSMEs do not yet have the capability to prepare financial reports. MSMES players consider that the important aspects in starting a business are capital, skills and innovation or products, not accounting. Low accounting capability has an impact on neglecting the preparation of financial reports. Transparency can increase funding opportunities from banks or investors as well as opportunities for collaboration. There are still many MSMEs that have not prepared financial reports due to limited human resources and costs. However, MSMES players want to prepare financial reports. MSMEs in the medium business category have prepared financial reports in accordance with SAK EMKM, only some in the small business group and not in the small business group. SAK EMKM requires a statement of financial position at the end of the period (balance sheet), a profit and loss statement for the period and notes to the financial statement. MSMEs focus more on recording expenses and income for profit and loss projections but ignore the balance sheet and Calc. The compiled profit and loss is still not relevant, there are still many accounts that have not been taken into account. Preparing a complete report in accordance with SAK EMKM will provide much more relevant and credible information.
Authors and Affiliations
Desak Rurik Pradnya Paramitha Nida, I Wayan Chandra Adyatma, Riza Edwindra,
Keywords
Related Articles
- EP ID EP745208
- DOI 10.47191/ijcsrr/V7-i9-40
- Views 44
- Downloads 0
The Influence of Work Motivation and Organizational Culture on Performance Mediated by Work Discipline of Employees of the One Stop Integrated Service and Investment Service, Tapin Regency, South Kalimantan Province
The purpose of this study was to determine and analyze the significant influence of motivation, organizational culture on work discipline, significant influence of motivation and organizational culture on employee perfor...
The Importance of E-Worksheet Based on Problem Based Learning Activity to Improving Student's System Thinking Skills: Science Teacher's Perspective
This research aims to describe the importance of learning media in the form e-worksheet with a problem-based learning model to improve students’ systems thinking skills which focuses on Energy material. The research mode...
Knowledge, Attitudes, and Beliefs about Vaccination as Perceived By Rural Residents in Surigao City
This descriptive quantitative research assessed the knowledge, attitudes, and beliefs on vaccination among the residents within the rurality of Barangay Rizal, Surigao City. The study used a validated researcher-made sur...
Evaluation and Analysis of the Effects of Feed Supplements, Including both Organic and Inorganic Selenium, on the Production of Layer Eggs
This research aims to evaluate and analyze the provision of additional feed in the form of selenium (Se) on the performance of egg production produced by layers. This research took the main object in the form of 60 weeks...
Linguistic Landscape of Batu Bulan village, Gianyar
This research entitled “Linguistics Landscape of Batu Bulan Village Area, Gianyar”. This research was conducted with the aims at analyzing landscape dynamics in Batu Bulan village, Gianyar and also analyzing the language...