Enhancing Financial Reporting Practices Among Indonesian MSMEs: The Transition from Simple Bookkeeping to SAK EMKM-Based Reporting

Muliyani (Program Studi Manajemen, Sekolah Tinggi Ilmu Manajemen Sukma, Medan, Indonesia)

JUMEBIN : Journal of Management, Economics, Business, and Investment
Vol. 2 No. 1 (2026): June 2026

Micro, Small, and Medium Enterprises (MSMEs) play an important role in Indonesia’s economy, yet many lack standardized financial reporting practices. This study aims to prepare financial statements for ABC MSME in accordance with the Financial Accounting Standards for Micro, Small, and Medium Entities (SAK EMKM). ABC MSME, established in 2001, operates in the culinary sector and specializes in traditional cookies. A descriptive qualitative case study approach was employed. Data were collected through observation, interviews with the business owner, and documentation of business transactions. The analysis involved reconstructing opening balances, developing a chart of accounts, classifying transactions, and preparing financial statements based on SAK EMKM. The findings reveal that the enterprise had never prepared formal financial statements due to limited accounting knowledge and the absence of separation between personal and business finances. The study successfully produced an Income Statement, Statement of Financial Position, and Notes to the Financial Statements. These findings demonstrate that simple bookkeeping records can be transformed into standardized financial statements through appropriate accounting procedures and guidance.