Application of SAK EMKM as the Basis for Preparing MSME Financial Statements (UD LEO Case Study)

Abstract

The purpose of this study was to compile financial statements based on SAK-EMKM at UD LEO Business. The type of research the author uses is descriptive qualitative. The data collection techniques that the authors use are through interviews, observations, and documentation by collecting documents related to the preparation of MSME financial reports for UD LEO Enterprises. The data analysis method used is qualitative which consists of data collection, data reduction, data presentation, and conclusion drawing. Data validity is tested using data triangulation.

The results showed that the recording at UD LEO was not in accordance with the Financial Standards for Micro, Small and Medium Entities (SAK EMKM). This is due to the lack of knowledge and understanding of accounting from both owners and employees. In addition, there is a lack of Human Resources (HR) who understand accounting records, which results in limitations in preparing financial reports according to standards.