Title: STUDY OF FINANCIAL ACCOUNTABILITY OF MICRO, SMALL AND MEDIUM ENTERPRISES (Study on the 5 Largest MSMEs in Lamongan)

Authors: EKO WARSIYANTO NUGRAHADI

Affiliations: Masters Program in Accounting, Faculty of Economics and Business, Universitas Airlangga , Surabaya, Indonesia

Publisher: Universitas Airlangga

Abstract

The number of MSMEs is growing at 4% annually, making them the driving force of the Indonesian economy and contributing half of Indonesia's GDP. However, this figure is not supported by professional management by MSMEs. The implementation of SAK EMKM (Standard Accounting Standards for MSMEs) could provide standards for modern MSME management. In reality, many MSMEs are unaware of this standard, let alone implement it. This standard requires MSMEs to perform financial accountability, including preparing a Profit/Loss Statement, Balance Sheet, and Notes to the Financial Statements. This expectation does not match reality; many MSMEs fail to implement this form of accountability due to inadequate resources. This research uses a qualitative method with an exploratory case study approach. This method was chosen because the context of the ideal form of financial accountability must be sought, as researchers want to determine the ideal form of financial accountability implementation that aligns with the resources and capabilities of MSMEs. This study aims to provide a framework that demonstrates the ideal form of financial accountability for MSMEs. The results of research on the form of MSME accountability conducted are mostly non-standardized and in the form of single-entry accounting. The ideal framework for MSME financial accountability is ownership of a Taxpayer Identification Number (NPWP), Cash Receipt/Expenditure Report, and Cost of Goods Sold Report

Keywords: SMEs, Financial Accountability, Single Entity Accounting, Lamongan

Sources: http://repository.unair.ac.id/90346/