<![CDATA[This paper explores how Micro, Small, and Medium-Sized Enterprises (MSMEs) at the Sugito Opak Factory implement accounting practices, particularly in preparing financial statements based on the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM). MSMEs play an important role in supporting local economic growth; however, many still experience difficulties in maintaining proper financial records and preparing standardized financial reports. This research employed a qualitative case study approach to gain an in-depth understanding of accounting practices within the business. Data were collected through observation, interviews, and documentation. The findings reveal that the accounting practices currently applied are still limited to simple cash inflow and cash outflow recording and have not yet followed the complete stages of the accounting cycle. Consequently, important accounting concepts such as business entity separation, accrual basis accounting, and the measurement of financial statement elements have not been implemented adequately. Although business owners acknowledge the benefits of financial statements for business management and decision-making, many perceive the preparation process as complicated and less urgent compared to operational activities. As a result, essential financial reports, including the statement of financial position, income statement, and notes to the financial statements, have not been prepared in accordance with SAK EMKM. These findings indicate a gap between accounting standards and their practical implementation, highlighting the need for more accessible guidance and continuous assistance to support MSMEs in adopting SAK EMKM effectively.]]>
