Analyzing the Financial Report Preparation Standards of SAK EMKM on Micro, Small, and Medium Enterprises (Case Study on Bengkel Mas Yok Blora)

Abstract

Accounting plays a crucial role in business, serving as the process of recording and reporting financial transactions, resulting in financial statements that help business owners understand profits, losses, assets, liabilities, and cash flows. This study aims to examine the application of SAK EMKM standards in financial reporting for Micro, Small, and Medium Enterprises (MSMEs), with a focus on Bengkel Mas Yok in Blora. The research adopts a qualitative approach, utilizing in-depth interviews with the business owner to gain insights into the application of SAK EMKM standards and the challenges faced. The findings indicate that the financial reports of Bengkel Mas Yok generally follow a standard format, but there is limited understanding of specific SAK EMKM requirements. As a result, the business primarily relies on external accountants or consultants for compliance. The financial reports prepared by Bengkel Mas Yok, including income statements, equity changes, and balance sheets, were evaluated for their alignment with SAK EMKM standards. The study concluded that the reports are reliable, informative, and consistent, meeting most of the SAK EMKM indicators. The application of these financial reports helps the business owner make more informed decisions, such as managing private withdrawals, identifying urgent equipment needs, and improving savings discipline. Moreover, the credibility of the financial reports enhances the business’s ability to secure loans. These findings align with previous research, demonstrating that SAK EMKM implementation supports better financial management and decision-making for MSMEs. The study highlights the importance of continuous financial literacy programs for MSME owners to improve financial reporting practices.