USE OF FINANCIAL REPORTING IN UMKM BASED ON SAK EMKM (CASE STUDY IN TOSO VILLAGE)

Abstract

The use of MSME financial reports based on SAK EMKM (Financial Accounting Standards for Micro, Small, and Medium Entities) is an important aspect of financial management. Micro, Small, and Medium Entities) is an important aspect in the financial management and sustainability of small and medium enterprises and sustainability of small and medium enterprises. The case study of Toso village, examines the use of MSME financial statements according to the simple accounting standard SAK EMKM to thoroughly understand financial management practices using the thoroughly understand the practice of financial management using qualitative qualitative research methods with data collection techniques that include observations and interviews with business actors. The results showed that the level of understanding and application of SAK in EMKM based on financial statements has not been carried out in MSMEs in Toso Village. MSMEs in Toso Village. Business actors do not understand the importance of financial reports in measuring business performance and financial planning they find it difficult to understand or apply these accounting standards. This study recommends increased training and technical support for MSMEs to optimize the use of financial reports by SAK EMKM, which in turn can improve the performance and sustainability of these MSMEs. Improve the performance and sustainability of these MSMEs. This study provides valuable information for decision-makers and MSME support institutions to design programs and activities to help MSMEs and MSME support institutions to design programs and activities to help MSMEs manage their finances more effectively and efficiently. manage their finances more effectively and efficiently and support local economic growth in Toso Village local economic growth in Toso Village.