ANALYSIS OF THE APPLICATION OF SAK EMKM IN THE PREPARATION OF FINANCIAL STATEMENTS (Case Study on Utami Traditional Food MSMEs)

Abstract

This research aims to analyze the application of the Financial Accounting Standards for Micro, Small and Medium Entities (SAK EMKM) in preparing financial statements at Utami Traditional Food MSMEs with a focus on its impact on financial management. This research uses qualitative research methods with data collection techniques through observation, in-depth interviews with business owners, and documentation studies. The results of the research that occurred in Utami Traditional Food MSMEs revealed that the financial records that had been carried out were still in the form of unstructured manual records. This makes it difficult for Utami Traditional Food MSMEs to analyze their financial performance. Limited understanding of the ability of human resources in preparing financial reports in accordance with SAK EMKM and also the complexity of technical terms in accounting standards are the main problems of the results of this study. The application of records according to existing standards, MSMEs are able to make decisions for business continuity and also increase their financial transparency. The findings of this study prove that SAK EMKM has the potential to improve the financial governance of MSMEs if accompanied by assistance that matches the capacity of business actors.